LED Industry Becomes Mature, Large Enterprises Compete to Expand Production, Small Enterprises Run away Frequently

 Since the beginning of this year, the LED industry can be described as "cold and warm". On the one hand, there are "high prosperity in the industry" that securities companies have been touting since the beginning of the year, and on the other hand, there are "running doors" incidents that have been continuously exposed.

"The LED industry is gradually moving from the growth stage to the mature stage. Although the rapid growth of the industry is still continuing, the pressure on enterprises will not be small at all. In this process, it is inevitable that big fish eat small fish, and fast fish eat slow fish. phenomenon, the number of enterprises will gradually decrease due to mergers, acquisitions, and exits.” said Wang Fei, senior analyst at LEDinside.

The high prosperity of the industry is not a bragging.

According to LEDinside's statistics for the first three quarters of 2014, 15 of the 20 listed companies with LED -related business as their main business saw growth in both revenue and profit.

The production expansion competition in the chip field is still staged.

The production capacity of Sanan Optoelectronics , the big brother of mainland chips , has always been at the forefront. In April this year, it announced that it would invest an additional 10 billion yuan in the construction of blue-green light epitaxy and chip production lines, with a total scale of 200 MOCVD units (converted based on 2-inch 54 pieces) , 100 MOCVD equipment will be launched in the first phase.

Huacan Optoelectronics still expanded against the market regardless of cost when the chip was in a downturn two years ago. First, it used the raised funds to establish a wholly-owned subsidiary in Zhangjiagang after listing. The company's production capacity is twice that of the parent company in Wuhan. 3 times the original.

Even the low-key and cautious Qianzhao Optoelectronics announced in July this year that it will expand its production - with a total investment of 5 billion yuan and 100 new MOCVD equipment, of which the first phase of the project will add 50 MOCVD equipment at the latest in 2015 Placed in place and put into production by the end of September 2019.

The production expansion competition not only takes place in the chip field, but also in the packaging field.

The current packaging production capacity of Hongli Optoelectronics has reached 1500KK per month, while at the beginning of this year, this figure was only 800KK. After Hongli acquires Smart Optoelectronics, the total production capacity of "Da Hongli" will reach 2000KK/month, of which the EMC production capacity alone will reach 600KK (Hongli 200KK + Smarter 400KK), ranking second in China. And Hongli will continue to inject capital into Smead to continue to expand its EMC production capacity.

When talking about "big data" these days, what Mu Linsen lacks most is "big data" that is frighteningly large. Lin Jiliang, general manager of Mulinsen Lighting , said that Mulinsen's monthly production capacity of LED devices in 2014 exceeded 20 billion units, and continued to expand at a rate of more than 1 billion units per month. It is expected that the monthly production capacity will reach 30 billion units in 2015.

"Under the release of such a large production capacity, small companies can't compete for production capacity and price. Without production capacity advantages, there is no price advantage." Industry insiders bluntly said that small-scale and product routes are relatively similar to Mulinsen. Enterprises are basically forced to the edge of the cliff, either jump off the cliff, or turn around and switch to other product lines.

"Although the industry is maturing, the growth rate will decline, but the price will tend to be stable, and industry profits will gradually return to normal economic profits. Large companies hope to increase their market share by continuing to expand, and occupy a favorable position in this survival competition. position." Wang Fei said.

Different from the large-scale expansion route of large companies, the fate of small companies is more miserable.

In 2014, the reshuffle of the LED industry is still accelerating, and naturally many people have been washed away. This year, Lihefeng Technology (Shenzhen) Co., Ltd., Zhongshan Fengguang Lighting, Jiangmen Jinqiutian Lighting, Zhongshan Haosai Lighting, Sichuan Yuanli Optoelectronics, etc. were exposed to the news of running away this year.

According to statistics from LEDinside, from 2011 to 2014, more than 18 LED companies were involved in the runaway incidents that were publicly reported in the newspapers, and this does not include those companies that quietly closed down.

A person in charge of a private enterprise who did not want to be named looked sad, "The industry situation is changing too fast, and it is not easy for small-scale companies to survive in the cracks. Those listed companies will raise hundreds of millions of capital at every turn, without blinking an eye." , the 'war' in the future will be more intense, and whoever can survive will depend on each family's ability."

Borrow a sentence to close the end, "Americans invent things, Japanese make them fine, Koreans make them cheap, Chinese make them cheap".

Chinese companies do not form alliances, but only fight among themselves. The more critical times are, the more self-serving they are. On the other hand, a company from an island country forms an alliance with its peers. In times of crisis, they form an alliance to survive and develop. They have monopolized in certain industries for a long time. Which LED companies can do it? arrive?

Shenzhen Guangke Lighting Co., Ltd. was established in Shenzhen, China. It is one of the high-tech enterprises in the research and development and manufacture of LED light sources in China. The company mainly serves the field of LED advertising decorative lighting.

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