Chinese manufacturers in the hottest LED packaging

2022-08-18
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Chinese manufacturers in the LED packaging market are about to counter attack

recently, trendforce led research released the latest "2017 China led chip and packaging industry market report". Comparing the data in recent years, it can be found that the share of Chinese LED packaging and testing manufacturers in the domestic market has increased steadily, and the ranking has also increased steadily. Can Chinese manufacturers complete the counter attack and surpass foreign manufacturers

trendforce led research's latest "2017 China led chip and packaging industry market report" shows that the LED lighting market grew steadily in 2016, and the production capacity of chip and packaging manufacturers continued to expand. In particular, the scale of China's LED packaging market increased by 6% annually to US $8.9 billion. Among the top ten manufacturers in terms of revenue, Nichia chemical won the championship for a long time, mulinson rose to the second place, and Lumileds ranked third. Compared with 2015, Chinese manufacturers have improved their share and ranking. Let's compare the detailed data in recent years:

among the top ten manufacturers of LED packaging revenue in the Chinese market in 2015, Nichia chemical won the championship for a long time, Lumileds won the runner up, and Mu Linsen followed closely

the top ten manufacturers have a revenue of US $3.3 billion. Using this instrument on a year-on-year basis, it can also conduct impact control experiments on samples of the same material and specification to identify the quality of materials. The decline is 15%, accounting for 38% of the LED packaging in the overall Chinese market, with a year-on-year decline of 8%, indicating that the market is still relatively fragmented

specifically, international manufacturers occupy 5 seats, while Chinese manufacturers have jumped to 3 seats, with an obvious rising trend. Chinese manufacturers' revenue performance is excellent, mainly through the advantages of product cost performance, coupled with the narrowing of the technology gap, and gradually seize the market share of international manufacturers

although the revenue of Nichia chemical China fell significantly due to the impact of exchange rate and business changes, and the market share decreased significantly, it still ranked first. Lumileds, with the rapid growth of the lighting and vehicle market, helped its revenue perform well and won the runner up. The revenue of Chinese manufacturer Mu Linsen fell slightly, ranking third. Yiguang has successfully developed the vehicle, small spacing display screen and flash lamp Market in the Chinese market, ranking fourth. OSRAM has successfully developed the automotive and infrared LED market in the Chinese market, ranking fifth. Guoxing optoelectronics has achieved success in developing the application market of small spacing display screen, and its ranking has been raised. In this way, the tear strength value can be increased. Hongli optoelectronics was able to replace AOT to enter the top 10 for the first time due to the merger of smeade's revenue

how will this situation change in 2016

in 2016, the top ten manufacturers of LED packaging in the Chinese market had a revenue scale of $4.1 billion, with an annual increase of 24%, much higher than the average growth rate of the overall market of 6%, indicating the improvement of industrial concentration

nichia chemical, which still ranked the top in 2016, relying on its technology, patents and brand advantages, not only continues to maintain its market share in the backlight market, but also actively expands the high-end automotive lighting market. In 2016, the production capacity of MuLinSen, which ranked second, continued to expand, and its market share in the lighting and display screen markets also increased. Although Lumileds fell to the third place, it still enjoys competitive advantages in the field of high-end commercial lighting, flash lamps and vehicle lighting, and its revenue also increased compared with the same period in 2015

manufacturers in Taiwan, China, such as Yiguang and Guangbao, have significantly increased their revenue performance in Chinese Mainland. Take Yiguang as an example, the revenue mainly comes from TV backlight, flash, display screen, vehicle and infrared products; Guangbao benefits from flash, infrared products and automotive lighting products

among the top ten manufacturers, the other two manufacturers in Chinese Mainland, Guoxing optoelectronics and Hongli optoelectronics, both ranked higher than in 2015. Guoxing optoelectronics not only consolidated its leading position in the LED small spacing display screen packaging market, but also vigorously developed the lighting LED packaging market, with an annual revenue increase of 36%, ranking sixth; Hongli optoelectronics continued to expand the market share of lighting LED packaging, and the revenue of its subsidiary smeade increased by more than 60%. With the further release of the production capacity of Jiangxi base in 2017, the ranking is expected to be further

What are the top three companies?

although the ranking of domestic market share has changed occasionally in the past two years, the overall trend has not changed. The leading position has been monopolized by Nichia chemical. The share of domestic manufacturers is increasing, but the gap with international manufacturers is still obvious. Then let's take a look at the skills of the top three companies

Nichia chemical

Nichia chemical's main product is led. However, due to the slowdown in the LED market applied to smart/flat-panel LCD screens, and the fierce price competition with manufacturers in Taiwan, China and South Korea in the lighting market, Nichia chemical has delivered the results of declining revenue and profits for two consecutive years, but the skinny camel is larger than the horse. Although the decline, Nichia chemical has great advantages in technology and market

according to the data of DIGITIMES research, the LED chip revenue of Nichia chemical in Japan in 2016 was $2.423 billion, which is the highest among the global LED packaging service providers

lumileds

lumileds, as the technology pioneer of LED, has taken the lead in the development of subdivisions, among which the flash lamp has maintained a good growth every year

lumileds' R & D team and strong intellectual property rights are important weapons. At present, the company has about 9000 employees worldwide and its annual revenue can reach $2billion. It is still a considerable company in the LED industry

at the end of December 2016, Royal Philips of the Netherlands officially said that it would sell 80.1% of its equity to Apollo global management, LLC, a private equity fund in the United States, at a price of $2billion (including debt and debt type projects). Philips still holds 19.9% of the equity of Lumileds

in fact, Lumileds was separated from Philips and operated independently in 2015. Its innovation, technology leadership and loyal and strong customer base are the main values of the company

as one of the top three manufacturers in the domestic market and the only Chinese manufacturer, the market share has been steadily increasing. Can this company counter attack in the future

it is understood that Mu Linsen, who is celebrating his 20th birthday this year, can be said to be a "top student" in the development of China's LED industry

at the mention of mulinson, people usually get the first impression of a packaging plant that pursues low-cost strategies. However, if we only think about Mu Linsen with the cost leadership strategy, we will inevitably fall into a misunderstanding of the development strategy of this fast-growing led company, and it is difficult to explain how the high-speed growth (CAGR 39.45% from 2008 to 2016) can maintain a good growth quality (gross profit margin continues to be maintained at 20-30%)

there are many packaging plants developed at the same time as MuLinSen, among which MuLinSen is famous for its ability of cost control and embarked on a low-cost strategy, while others adopted the road of differentiation. Mu Linsen's strategy has also achieved today's development

outlook for 2017 ledinside summarized six market trends in the LED packaging and testing market in 2017:

trend 1: Chinese LED manufacturers accelerated their development, and the domestic utilization rate continued to rise

according to ledinside's analysis, in 2016, the utilization rate of domestic products in China's LED packaging market reached 67%. Nichia chemical is still the main supplier in China's LED packaging market, ranking first among the top 10 manufacturers. Besides Nichia chemical, there are also five international enterprises. Of course, Chinese manufacturers are not inferior. MLS has developed rapidly, surpassing Lumileds (Dutch LED manufacturer) and ranking second. The rankings of nationstar and honglitronic have also improved

trend 2: China's LED lighting market is growing steadily

the scale of China's LED lighting market has reached 25.9 billion yuan, lower than expected. The main reason is that the demand for LED lighting in the global market has not increased significantly, resulting in the decline of China's overall led exports

however, due to the stable domestic market demand, China's LED lighting market increased by 9% year-on-year in 2016. According to ledinside's prediction, the scale of China's LED lighting market will grow to 28billion yuan in 2017 and 36.4 billion yuan by 2020, with a compound annual growth rate of about 9% from 2015 to 2020

trend 3: international manufacturers hand over many OEM (OEM) orders to Chinese manufacturers

due to the dominance of low-power LED lamps in the LED lighting market and the high capacity utilization of Chinese first-class manufacturers, OEM (OEM) orders from many international brand manufacturers (Lumileds, OSRAM, Cree, Sanxing, LG Innotek, etc.) are gradually concentrated in China

trend 4: the growth of market demand for small spacing LED displays stimulates manufacturers to expand

as the market demand for small spacing LED displays is still rising. Ledinside predicts that China's LED display market will reach 15.8 billion yuan by 2020. In the early stage, Everlight was in the leading position in the small spacing LED display market. Nowadays, more and more Chinese manufacturers have also entered this field, including Guoxing optoelectronics, mulinson and kinglight, which has also stimulated manufacturers to expand in this field

trend 5: Chinese enterprises use MOCVD technology to further reduce LED manufacturing costs

MOCVD equipment manufacturing technology was once in the hands of European and American companies. Veeco (American Instrument Company) mainly produces epik700 MOCVD equipment with large long crystal furnace. Based on the k465i MOCVD launched by the company in 2010, epik700 MOCVD has the most reaction chambers

the market share of Chinese MOCVD equipment suppliers such as AMEC and topecsh is also gradually increasing, although it accounted for only 11% of the market share in 2016

trend 6: the market demand for LED filaments is increasing year by year

in the past two years, as LED filaments are popular in Europe, North America and Australia, more and more manufacturers have entered this field, and the market scale will show rapid growth. In 2016, the global LED filament market demand was 150million. Ledinside estimates that by 2018, the global LED filament market demand will reach 600million

in terms of packaging products, the main LED filament suppliers are runlite (Shenzhen yuanlei Technology Co., Ltd.), MLS (mu Linsen), REFOND (Ruifeng Optoelectronics) and Hangke Optoelectronics (Hangke Optoelectronics)

At the present stage of led development, capital, technology and scale have become important factors for the development of the industry

at present, LED lighting technology is developing rapidly, the speed of industrial integration is significantly accelerated, the degree of industrial concentration will be gradually improved, and the polarization of enterprise development is obvious. On the one hand, large enterprises or enterprises with core competitiveness achieve rapid development and further gather to industry giants; On the other hand, under the dual pressure of technology and scale, small enterprises have low profits and difficult survival. Shutdown, merger and transfer occasionally occur, and the global LED competition pattern is gradually changing

it is inevitable that the LED industry will continue to reshuffle in the future, but each reshuffle will be another distillation of the LED industry. Eventually, some leading enterprises with core technologies, more independent intellectual property rights and well-known brands, strong competitiveness and reasonable industrial layout will be retained

in the upcoming reshuffle, for example, how should domestic enterprises stand

domestic enterprises such as Mu Linsen rely on their early cost advantages to continuously accumulate technological advantages through strategic adjustment, which will lead to disasters in terms of cost, technology and scale

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