The concentration of LED industry chain has increased and the supply and demand pattern has changed

On the day of construction on 2017, LED chip leader Sanan Optoelectronics issued a price increase notice to the downstream, and some of its products increased by 8. As the leading enterprise of LED chips, Sanan Optoelectronics has increased its price, which strongly verifies that the overall supply and demand pattern of the LED industry has undergone a fundamental change. Not only has the supply side contracted due to the elimination of backward production capacity, but also the stable growth of the downstream demand side of LED, profitability has steadily improved. LED chip leaders Sanan, Aoyang and other LED chip enterprises have been fully producing since the second half of 16 years. However, Taiwan's leading chip company Jingyuan Optoelectronics said that due to the sharp increase in downstream demand for quad-element LED, LED backlight, safety control monitoring, smart phone flash and vehicle products, it has been fully produced since the end of the second quarter of last year. Therefore, this price increase in San 'an is reasonable, and it is verified that the overall supply and demand pattern of LED industry is continuously improving. Since 16 years, LED chips and packages have been rising in price one after another, marking the end of the reshuffle of the overall LED industry chain and the entry of the industry from an era of excessive competition to an era of stable returns. After 15 years of reshuffle, the LED upstream chip end has been phased out. Taiwan's leading crystal power and CREE have shut down 25 production capacity, and Samsung and LG have also shut down some production capacity, in addition, in 16 years, domestic government subsidies began to shrink significantly, and domestic new supply expansion dropped significantly. At the same time, the downstream domestic ban on Bering increased the demand for 60LED lighting, and the annual compound growth of small-pitch LED was 28. Therefore, it can be observed that the price increase of some chip products has been 5-10; The price of some packaged products has increased by more than 15, and this time some LED chip products in San 'an have increased by another 8, proving once again that the overall supply and demand structure of the LED industry has improved. The concentration of LED industrial chain has been further improved, the industrial chain pattern has continued to solidify, and industry leaders have benefited deeply. With the further improvement of industrial concentration, the domestic LED chip market will only have 5- Of the 10 large-scale enterprises, the top five chip enterprises in the industry currently account for 65; This is especially true for packaging enterprises. The number of packaging enterprises has dropped from more than 1500 in 14 years to only more than 1000 in 16 years. The concentration will continue to increase in the future. The concentration of LED industrial chain is continuously improving, and the industrial chain pattern continues to solidify. LED upstream chip manufacturers are at the core of the LED industry chain, leading listed companies such as Aoyang Shunchang, Sanan Optoelectronics, etc. Aoyang Shunchang's total production capacity can reach 800 thousand pieces/month after the completion of the second phase of this year. At the same time, mulinsen's capital increase strategy has taken a stake in its subsidiaries, helping Aoyang to further consolidate its leading position in LED chips. Sanan Optronics has been moving continuously in the near future, completing the second phase of employee stock ownership plan to purchase nearly 91. 7 million shares, laying out compound semiconductors of chip materials, and signing a 'development financial cooperation agreement' with CDB. the company focuses on the layout of LED chips, integrated circuits and other fields to accelerate overseas mergers and acquisitions and capacity expansion. Leading listed companies in LED midstream packaging: Jason, Guoxing Optoelectronics, Hongli Zhihui, etc; Mulinsen packaging capital continues to expand, with an increase of 0. 5 billion Australian dollars and 5. 5 billion investment in LED lighting projects. At the same time, mulinsen packaging capital will increase or acquire a number of lighting enterprises. In the future, the packaging capacity will exceed KK/month after expansion; Guoxing Optronics has expanded its production three times in 12 months, and its small-pitch production capacity has exceeded 800kk/month at present. It has also signed a white light patent license agreement with GE of the United States, laying a solid foundation for further expanding overseas sales; Hongli Zhihui will further deepen the lighting packaging field with its product cost performance ratio, and recently push the employee stock ownership plan and the chairman's increase plan to demonstrate the management's confidence to become bigger and stronger. LED lighting and application leading listed companies mainly include Foshan Lighting, sunshine lighting, etc; Foshan Lighting's third-quarter results surged 281. In the first half of the 16th year, LED lighting revenue increased by and sales volume increased by. It is expected that LED lighting will be further released in the whole year.