Breakthrough and change: LED industry rushed to seal

In 2016, after the impact of the expansion of the LED industry, price increases, and mergers and acquisitions, the LED industry is undergoing drastic changes. Especially in the middle of the package, as the packaging giants take the lead, the industry chain is moving from price war to value war. In 2016, after the impact of the expansion of the LED industry, price increases, and mergers and acquisitions, the LED industry is undergoing drastic changes. Especially in the middle of the package, as the packaging giants take the lead, the industry chain is moving from price war to value war. This series of events not only marks the end of the LED industry's overall reshuffle, but also means that the packaging industry is entering a stable development era from the era of excessive competition in previous years. In 2017, with the release of the performance reports of listed companies, most of the packaging companies have achieved double growth in revenue and net profit. It is expected that in 2017, under the price increase of the overall cost of the LED industry, the LED industry will take the lead. It started the battle of rushing, and achieved rapid development in breakthrough and transformation. The performance is red, the packaging industry returns to rationality 2017, no doubt is the year of change in the LED packaging industry. On the one hand, after the price competition of LED products in the previous two years, some small and medium-sized packaging enterprises have been eliminated, and the industry pattern has taken shape. On the other hand, since the second half of 2016, with the raw materials such as circuit boards and gold wires. Large-scale continuous increase, as well as the demand for downstream application demand, including large-scale packaging manufacturers such as Mulinsen, Guoxing Optoelectronics, Hongli Optoelectronics, Smide, etc. have launched a price hike, this price adjustment is conducive to LED manufacturers' profit improvement . Breakthroughs and changes in the performance of listed companies in the LED packaging industry in 2016: The LED industry's rushing and sealing campaigns have been seen in the performance reports recently released by several listed companies. In addition to the Changfang Group and Hongli Zhihui, other packaged listed companies 2016 The annual net profit has achieved double-digit growth, the largest increase is Wanrun Technology, and the most earned is Mulinsen. Among them, it is worth mentioning that the large demand for small-pitch display screens in 2016 also contributed a lot of performance to LED packaging companies. Such as Guoxing Optoelectronics and non-listed companies Jingtai Optoelectronics. Jufei Optoelectronics also clearly stated in the announcement that the company's strategic new business such as small-pitch display LEDs is also relatively smooth, and gradually contributes to business performance. In addition, lighting is still an important driving force for the growth of the industry. In 2016, the overall output value of China's semiconductor lighting industry exceeded 500 billion yuan for the first time, and the industrial scale reached 521.6 billion yuan, an increase of 22.8% compared with 2015. The package size of the middle reaches reached 74.8 billion yuan, up 21.5% year-on-year. Since last year, the LED industry has gradually begun to recover. In the field of packaging, the prices of mature products such as low-power 2835 and medium-power 5630 have stabilized, with the high application of lighting. Demand for power grade LEDs is bullish, and there is still plenty of room for development in the future. According to statistical agency data analysis, the LED packaging market will maintain moderate growth in the next few years, and will grow to 18.5 billion US dollars by 2021 (compared annual growth rate of 3.4% during 2016-2021). The expansion of production surges, and the polarization becomes more and more obvious. With the gradual maturity of the LED industry, the trend of the larger Evergrande is already evident in the packaging field. Behind the growth in the performance of listed companies is the expansion of leading LED companies. On January 4, 2017, Mulinsen's total investment of 5.5 billion yuan LED lighting project was officially launched, which also indicates that the layout of this packaged giant ship has once again expanded. The scale effect brought about by the expansion is emerging. In the announcement of the Mulinsen Express Bulletin, during the reporting period, as the production capacity of the company's fundraising projects was gradually released, the scale effect was significantly improved, which led to a further decline in the unit cost of the products. The market competitiveness of the company's products continued to increase and the market share continued to expand. According to relevant statistics, last year's top three packaging factories, Mulinsen, Guoxing Optoelectronics and Hongli Optoelectronics, both implemented expansion and speed up, and Mu Linsen also expanded the packaging project by means of a fixed increase last year. On March 13, Guoxing Optoelectronics announced that the company plans to invest no more than RMB 200 million in the company's display device project based on its own development strategy plan, combined with the judgment of the LED packaging market and the demand situation of existing customers. Expansion. The construction period of this expansion project is from March 2017 to July 2017. In fact, this is the third expansion of Guoxing Optoelectronics since April 2016. It was only half a year away from the last expansion project of 400 million yuan (October 2016). In 2017, Hongli Zhihui will also integrate resources for the three LED production bases in Nanchang, Guangzhou and Shenzhen. The Nanchang plant was completed in July last year and will start production in August. The monthly production capacity of LED packaging can reach 1200-1500KK. It will continue to expand its production capacity and become the largest production base of Hongli. Nowadays, in the context of fierce market competition, expansion will not only reduce costs and seize more market share. The most direct impact on the industry will be to accelerate the reshuffle and integration of the packaging industry. In the conventional general-purpose devices, SMEs are at a disadvantage in terms of brand, capital, technology, scale, and production capacity. Some enterprises with backward technology gradually withdraw from the market, and the leading share of large enterprises in the market has been strengthened. With the continuous release of large-scale production capacity, industrial concentration is gradually rising. According to LEDinside data, the market share of the top ten manufacturers in the packaging industry has reached 45%. In addition, the expansion will also eliminate the lack of competitive SMEs. According to the forecast data of statistical agencies, the number of LED packaging companies in 2016 is estimated to be only about 1,000, and by 2020 there will be only 500. It can be seen from this that the concentration of LED packaging continues to increase, and the share of SMEs will be further eroded. The pattern changes and the focus of packaging shifts to China. In recent years, with the continuous increase of LED penetration rate, the growth rate of the global LED industry is gradually slowing down. In the domestic market, the market share of LED chip manufacturers has exceeded 70%, and the global packaging capacity has been increasing. It is also accelerating the transfer to China, and it is expected that the packaging capacity of the mainland will continue to grow in 2017. At present, the LED industry presents several trends: the demand for the entire market is increasing. At present, although the demand for LEDs continues to increase, the competitiveness of overseas packaging giants in general lighting devices is gradually weakening, including Nichia, Osram, Lumileds, International companies, including Samsung, are constantly seeking differentiated markets, avoiding the disadvantages of capacity, and even transferring some orders to domestic packaging plants for OEM. In fact, as early as 2015, the global packaging manufacturers Top10 ranked Chinese manufacturers have occupied three seats (Mu Linsen, Hongli, Yiguang). The strength of China's power in the global LED industry is getting heavier. The original US, Japan and Europe are leading, and the situation of South Korea and China is being rewritten. Especially with the continued expansion of Mulinsen, Guoxing Optoelectronics and Hongli Optoelectronics in the past two years, China has become a veritable world LED packaging production base. The continuous expansion of the market scale and the heavy volume of downstream demand have also brought tremendous development opportunities for Chinese LED packaging companies. According to statistics from LEDinside, in the field of upstream LED chips, the size of China's market in 2016 reached RMB 13.9 billion, up 9% year-on-year, the yield of chip countries rose to 76%, and the market share of the top ten manufacturers rose to 77%. In the packaging field, the market size reached RMB 58.9 billion in 2016, a year-on-year increase of 6%. At present, the LED packaging industry has entered a period of stable development. In the overall economic downturn, the packaging market grew by 6% in 2016. At the same time, although the high-end fields such as automotive and Flash are still difficult to break through, the national productivity has slowly increased. To 67%. In addition, the production capacity of Chinese LED packaging companies continues to expand. According to DIGITIMES news, in view of the significant growth in demand for LED lighting, large-size LED display and LED automotive lighting, the capacity of China's LED packaging companies will see significant growth in 2017. It is expected that the packaging capacity of Mulinsen will be further expanded to 15 billion LED chips. In addition, Guoxing Optoelectronics also expanded its LED packaging capacity by 40% in 2016. LEDinside analyst Yu Bin said that the current technology gap between LED companies in the two sides is shrinking, and mainland manufacturers have obvious advantages in cost performance. From the current point of view, the manufacturers of expansion are mainly concentrated in the mainland, and it is predicted that the localization rate of LEDs will continue to increase in the future. In the past year, the achievements of China's LED packaging industry have been obvious to all. With the strong rise of leading enterprises, China's LED packaging industry has taken the lead in the international market in terms of technology and scale. In the future, the packaging giant will also carry out the layout of the domestic and overseas markets in the industrial chain, and China's LED packaging industry will face greater development space. As written in the Mulinsen announcement: I believe that in the next few years, after the acquisition of Landwells and the huge production of LED production bases, Mulinsen will have more room for growth and achieve the goal of 10 billion yuan or just around the corner.

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