Price, technology and market trend of Chinese LED industry in 2016

The LED industry chain mainly includes raw materials, equipment, upstream chip manufacturing, Midstream LED packaging and downstream LED applications. The downstream LED applications are mainly divided into LED lighting, LED display screen and LED backlight applications. LED application is an important link that can bring higher added value in the whole industrial chain. At present, the large-scale market for LED downstream applications is in the lighting field, followed by backlight applications and display screens. The scale of display screen application still maintains a relatively stable and rapid growth trend, especially with the maturity of small-pitch LED display screen technology, LED display screen application will gradually move from outdoor super-large size display application to indoor, the application field will be significantly expanded, and it is expected that the growth rate will maintain a very high speed in the next few years, thus gradually increasing the proportion of LED display screens in the entire downstream application industry chain. The development analysis of the whole industrial chain in the upper, middle and lower reaches of LED shows that the output value of China's LED industry reached 109. 7 billion yuan in the first quarter of 2016, up year on year. 1. The year-on-year growth rate has accelerated. Among them, the output value of LED chips, LED packages and LED applications in the first quarter was 33. 5% respectively. 0. 4 billion yuan, 176. 0. 2 billion and 887. 0. 3 billion yuan, an increase of 13 and 16 respectively. 7/and 24. 9. The growth rate of the upper, middle and lower reaches of the LED is obviously divided, and the growth rate of the upstream chip and the midstream package is lower than the average growth rate of the industry, and is still affected by market price competition. Price Trend: The price of LED chips will not change much in the second half of the year. Entering 2016, it is affected by macroeconomic factors such as weak demand in the international market and slowing economic growth in China, the LED industry is characterized by homogenization of products, white-hot price competition, and normalization of mergers and acquisitions. 2015 mainland LED chip manufacturers new capacity continuous release market oversupply of proportion up to 20. In the first quarter of 2016, affected by the adjustment of production structure of inventory and chip enterprises, the overall capacity utilization rate of the industry declined. In addition, the price of LED lighting chips fell sharply last year, in the first half of this year, some corporate chip prices have a slight correction trend. Although international companies such as Jingdian, Samsung and CREE have made the decision to selectively reduce production, domestic companies such as Huacan optoelectronics and Aoyang Shunchang have been in full production, and the overall supply and demand pattern of the market has not changed, still in a state of oversupply. With the completion of product structure adjustment and market demand increase in the second half of the year, chip prices will remain stable as a whole. ● In the first half of 2016, the Qianzhao photoelectric blue-green chip project was put into production, and the company's blue-green chip product production capacity will be gradually released in the second half of the year. ● In the second half of 2016, Aoyang Shunchang Phase ii led epitaxial wafer and chip project will be completed, and the production capacity is expected to be at least doubled. ● In the second half of 2016, the production capacity of Xiamen Sanan Optoelectronics Co. , Ltd. , the chip leader Sanan Optoelectronics fundraising project, is gradually being released. The company has invested 28 chambers of MOCVD equipment ( Converted into 2 inch 54 machine is equivalent to 56) Among them, the production capacity of 12 chambers in March will be reflected in the second quarter, and the remaining equipment will be put into production as soon as possible, and the production capacity will be further expanded. ● On May 2016, Huacan Optoelectronics officially launched the LED extension, chip and Sapphire processing project with a total investment of 6 billion yuan in Yiwu Industrial Park, Zhejiang.