LED industry recovery is expected to ease chip overcapacity
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China's LED industry encountered an inflection point in the second half of 2013. In the first quarter of 2014, the signs of LED industry's recovery were more prominent. This shows that the strong demand for LED downstream lighting has been passed to the middle and upstream packaging and chip companies. China's LED industry encountered an inflection point in the second half of 2013. In the first quarter of 2014, the signs of LED industry's recovery were more prominent. This shows that the strong demand for LED downstream lighting has been passed to the middle and upstream packaging and chip companies.
LED lighting products market share expansion chip overcapacity crisis has been alleviated In the first quarter of 2014, China's LED industry total output value reached 74.68 billion yuan, an increase of 25.9, the overall overall performance of the industry was good.
According to the high-tech LED data, the total output value of China's LED industry in the first quarter of 2014 reached 74.68 billion yuan, a year-on-year increase of 25.9. The overall performance of the industry started well. Among them, especially in the following aspects:
The market share of LED lighting products continues to expand. Specifically in:
First, the domestic emerging LED lighting companies have good revenue. In the first quarter, domestic LED lighting companies had better revenue. For example, in the first quarter of the year, Sunshine Lighting's LED lighting products revenue reached 300 million yuan, a year-on-year increase of 140 million yuan; Huacan Optoelectronics' first-quarter revenue increased by 150%; Sanan Optoelectronics' first-quarter revenue increased by 30; In the first quarter, Li Optoelectronics' operating income and net profit increased by 30.26 and 71.95 respectively.
Second, the penetration rate of LEDs in the field of lighting continues to increase. According to the first quarter of 2014, the penetration rate of LED lighting has increased from less than 3 in 2012 to 7. With the accelerated replacement of traditional lighting in 2014, the industry will enter a period of rapid growth.
The structural overcapacity crisis in the chip segment has been alleviated. Specifically in:
First, the market demand for downstream lighting applications has picked up, driving the capacity utilization rate of the chip market to continue to increase. In the first quarter of 2014, the output value of China's LED chip industry exceeded 2 billion yuan, a year-on-year increase of 21.6. The growth rate has increased compared with the same period in 2013. Benefiting from the surge in downstream demand, shipments of many domestic chip manufacturers increased rapidly in the first quarter of 2014.
Second, the unfavorable situation of the continued decline in chip prices has been reversed. After 2010-2013, the number of chips has been reduced. In 2014, the trend of rapid decline in chip prices has stopped. In the first quarter, the overall performance of chip prices stabilized, and some manufacturers' chip prices even rose slightly.
Sapphire materials usher in a new round of investment frenzy. Specifically in:
First, the semiconductor lighting market is picking up, driving the demand for sapphire materials. Since the fourth quarter of 2013, domestic LED lighting demand has continued to increase, especially from the financial reports of major manufacturers in the first quarter of 2014, the LED industry's profitability has been rapidly strengthened. With the recovery of this round of industry boom, the demand for sapphire substrate materials has rebounded.
Second, the consumer electronics market represented by smart phones has driven the industry's demand for sapphire materials. At the beginning of this year, manufacturers of mobile smart terminals such as Apple, Samsung and Xiaomi said that they would use sapphire materials in the cover glass of smart phones and wearable devices, further increasing the market's investment inclination for sapphire. TrendForce predicts that the sapphire material used in mobile smart terminals in 2014 will be equivalent to the number of sapphire substrates used in LEDs, and will be twice as much as the demand for sapphire substrates for LEDs in 2015.
Industrial development continued to improve the integration process of the industrial chain. In the second quarter of 2014, the utilization rate of chips and other capacity will be optimized, the market share of domestic LED backlights will be increased, and the integration of the industrial chain will be accelerated.
Overall, the development of China's LED industry in the second quarter of 2014 will continue the steady trend of the first quarter, and continue to improve, especially in the field of chips, raw materials, industrial applications and other areas with more optimistic development prospects, specifically in the following three aspects:
Capacity utilization will be further optimized while chip and raw material capacity are being released. Looking forward to the second quarter of 2014, it is expected that with the accelerated deployment of LED lighting products by international and domestic application manufacturers and the further acceleration of the elimination of incandescent lamps, LED lighting demand will be rapidly penetrated. In general, the utilization rate of LED chip capacity will further increase in the second quarter of 2014, and it is expected to reach 90 or more. Therefore, it is inferred that this will drive the LED substrate to continue to increase the demand for key raw materials such as sapphire and Mo.
The market share of domestic LED backlights will further increase. At the end of 2013, the global proportion of domestic backlights has increased from less than 10 to 20. Looking forward to 2014, the proportion of domestic backlights will continue to increase, and the global proportion is expected to reach 25. At the same time, the global focus of the backlight market in 2013 shifted to mainland China, and it is expected to have a positive effect on domestic backlight manufacturers in the second quarter of 2014. At the same time, the support of the electronic development fund for the backlight display chip will further enhance the competitive enthusiasm and technical strength of the domestic backlight manufacturers. As the proportion of localization increases, more manufacturers will enter the backlight field. At present, it has been known that upstream Huacan Optoelectronics and downstream Hongli Optoelectronics are actively involved in the TV backlight supply chain.
The process of industrial chain integration will be significantly accelerated. With the guidance of industrial policies of government departments and the rapid development of LED lighting technology in recent years, the integration speed of LED industry has obviously accelerated. Leading enterprises with core technology advantages, patent advantages, brand advantages, strong competitiveness and reasonable industrial layout have begun to adopt mergers and acquisitions. And acquisitions increase their market share. Looking forward to the second quarter of 2014, as the industry price declines and the industry chain matures, it is expected that the LED industry will further strengthen the trend of industrial concentration, and the acquisition and integration will gradually become the main means of enterprise expansion.
LED lighting is expected to become a new growth point Diversified layout is conducive to product promotion LED lighting and diversified channel layout will become two hot spots in China's LED industry in 2014.
LED lighting is expected to become an emerging growth point in the industry. With the rise of the emerging lighting industry, people's lighting needs in the fields of furniture, urban landscape, and public transportation are also developing in a more humane and intelligent direction. Intelligent lighting will inevitably become an option. At present, the market penetration rate of intelligent lighting products in China is less than 2. The application of products is mainly reflected in dimmable LED landscape lights, color-adjustable temperature LED street lights and their monitoring. In the future, the market space for smart home lighting and intelligent road lighting will be greatly expanded.
Diversified channel layout may be beneficial to the further promotion of domestic LED application products. The monopoly of traditional lighting companies on traditional channel resources such as circulation and engineering has squeezed the sales channels of many emerging LED companies. With the increasing diversification of sales models, the application and development of e-commerce channels and designer invisible channels have become the focus of LED lighting companies in channel layout. For example, since the second half of 2013, a number of LED lighting listed companies such as Qinshang Optoelectronics, Tsinghua Tongfang, and Zhouming Technology have opened online stores in Tmall and Jingdong; Foshan Lighting and NVC Lighting Lighting companies that have transformed from traditional lighting, such as Sanxiong Aurora, have also focused on the e-commerce platform. It is expected that this trend will be further deepened in 2014, and the diversified channels will facilitate the promotion of LED products.