LED chip industry will tend to be centralized

At present, the global LED chip market can be divided into three camps: the first camp represented by Japanese, European and American manufacturers; the second camp represented by Korean and Chinese Taiwanese manufacturers; the third camp represented by Chinese mainland manufacturers. With the technological upgrading, capacity release of China's LED chip factory, and the huge subsidies of the national policy for the LED industry, China's share of the global LED chip production value has increased year by year. According to industry reports, the output value of domestic LED chips will surpass that of Taiwan in 2015, becoming the world's largest LED chip supply base. It is well known that this year is known as the first year of the LED industry development gold cycle, the company's revenue has increased significantly, but behind a series of bright data, the problem of not increasing profits in the industry still exists, due to the intense price war, the more profitable the company The thinner it is. According to industry analysts, this phenomenon is common in small and medium-sized enterprises, while large enterprises rely on their mature technology, operating systems and state subsidies. In the future, leading LED chip companies will show the situation of the larger Evergrande, and the industry tends to be centralized. In the first half of this year, there have been clear signs in the consolidation and expansion strategies of Sanan and Jingyuan. The industry rumors that LED chip companies will be judged in two years. China's LED chips have been seriously oversupplied, and the investment and return rate are out of balance. In this case, the industry shuffling mergers and acquisitions is the norm. Needless to say the future, there will be only 10 LED chip factories left in two years. Wu Yongsheng, general manager of Jiangsu Xinguanglian Semiconductor Co., Ltd. said. Strictly speaking, if you only look at the chip consumption in the lighting market, it is enough to have one or two large domestic chip factories. The main growth point of the lighting market is to replace traditional lighting. This is the largest market in the world. . Even so, there are data estimates, by 2018 the domestic market will reach its peak and then begin to decline. The LED chip industry is the first to become the end of the LED industry chain. In this environment, where should domestic chip companies go? The key to the transformation of the talent is the key in recent years, the good LED industry is like a blooming flower, attracting many bees close to the crazy honey, and the new Guanglian is one of them. Xinguanglian is currently the largest read-only optical disc manufacturer in China and even in Asia. It has advanced optical disc production lines and production technology and has been serving the world's best IT equipment manufacturers such as INTEL, Canon and EPSON. In order to expand the scope of business, Xin Guanglian has been eager to invest in a number of industries, optimistic about energy-saving and environmentally friendly LEDs with good development prospects, and finally choose to enter the LED industry. But after all, the LED industry and the optical disc business are two completely different fields. Xin Guanglian also encountered many problems in the early stage of the transition. When deciding to launch the LED project, the biggest problem is talent, the talent used for the development of new projects. The company has always advocated that people and talents are the primary productive forces. Therefore, in the early stage of LED business development, the company has made great efforts in the acquisition and selection of talents. At the same time, by giving full play to the enthusiasm of outstanding talents, the company is positioned to do Differentiated products with their own characteristics are still developing in this direction. Wu Yongsheng said frankly to the author. Leveraging on the refined management of the original optical disc business, talent reserve and abundant capital flow support, Xinguanglian's LED business has been carried out smoothly. According to Wu Yongsheng, in the past year, due to the outbreak of LED lighting, the core LED lighting chip used in the manufacture of lighting sources has once appeared in short supply. During this period, Xinguanglian also launched 17A, 15A and other series of chip products, which is in the industry leading level in reliability and light efficiency. This wave of climax has been released from the competition of technical performance to the price competition with the continuous release of the capacity of each LED chip factory. At this time, Xinguanglian has introduced a more forward-looking reserve technology product, namely: AC and DC high voltage chips, medium size flip chip. These two products have more cost advantages and reliability advantages in the production of finished lamps. It is understood that Xinguanglian began to expand downwards in 2012 to develop LED lighting applications and LED displays. Currently, chip products and lighting products are calculated from the output value, accounting for 1:1. Wu Yongsheng revealed that the reason for the new layout of the new Guanglian is to use a one-stop production chain to improve product cost performance. After mastering the epitaxial chip technology of the LED core, and timely expanding to the application end other than the package, the core technology advantages can be better utilized to provide customers with high reliability products. In addition, Xin Guanglian relies on the shareholder advantage of CITIC Group and Phoenix Media to better manage more quality customer resources. In particular, the current lighting application technology has been relatively mature, and the manufacturers have entered the era of the channel, and there are products in the market, not the opposite. With the advantage and support of shareholders, Xinguanglian has gradually accumulated rich experience in lighting application channels and steadily connected with the big market. Wu Yongsheng said. After the channel is opened, the product is still the foundation to support the development of the company. However, at present, in the domestic lighting products, the phenomenon of homogenization is the most serious, and the vitality of innovation is urgently needed. Wu Yongsheng said that the essence of the so-called homogenization is that the plagiarism is serious. The components of LED lighting products can be almost modularized, which makes the assembly of lighting products relatively easy, and the assembly of the lamps can be carried out with just a single screwdriver. Because there is no investment in research and development costs, the entry threshold is very low, resulting in a disorderly situation in the current LED lighting market. Xinguanglian Lighting products are not involved in the market of homogenization competition, because we mainly provide customized services to different customers to meet the needs of the project. This model determines that we must use the sense of innovation to design to meet different environments. Lighting products with different customer needs. In this regard, Xinhuilian Semiconductor R&D Director Huang Huishi also said that the ruler has a short period of time. Xinguanglian has fully utilized the characteristics of flexible production capacity adjustment, diversified products and broad scope, and timely adjusted products according to market conditions and customer needs. Strategy to deal with changing markets. Wu Yongsheng concluded that there are too many hot money in China, and that a good investment project will be swarmed up, resulting in a serious overcapacity, falling into a vicious competition in which the selling price is even lower than the cost price, resulting in no increase in income. This phenomenon exists in the entire LED industry chain. It can only be macro-regulated by the state. However, the scale of this industry is still small, which is not enough for the country to intervene. Otherwise, let the market finally decide who will die and who is left. king! In a fiercely competitive environment, the new Guanglian will adhere to the market segmentation and create a unique market in its own unique market. Wu Yongsheng said.

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