LED market prices higher product prices fell

In the first half of 2014, the domestic LED lighting market quickly opened in line with international trends, and the industry boomed continuously. Driven by the strong demand of the downstream lighting market, LED upstream chip industry achieved rapid growth. In the first half of the year, the overall performance of LED chip companies was good, and the new trends demonstrated by the chip end were remarkable.

Full capacity performance is good

The stock market is like a mirror. Subtle fluctuations will reflect the status quo of the development of enterprises and industries. The LED chip market is no exception. In the first half of the year, the stock market of listed chip companies has been all the rage.

In recent days, LED chip listed companies Sanan Optoelectronics, Huacan Optoelectronics and Qianzhao Optoelectronics respectively announced the first half of 2014 performance forecast, in which Sanan and Huacan were respectively increased by 40% and 185-215%, while dry lighting was lowered by 5 %-25%. Sanan Optoelectronics stated that with the penetration of LED lighting, LED demand has been strong, so far has not slowed down. During the reporting period, the company's production capacity further improved and its profitability continued to increase. The largest increase in profitability Huacan photoelectric announcement said that since the second half of last year, the momentum of growth in the demand for LED chip market continues to maintain, the decline in product prices is basically reasonable, profitability has rebounded significantly.

Vice president of Huacan Optoelectronics edge Difei said that the current demand for the downstream market is relatively strong, Wuhan base 37 MOCVD equipment is basically maintained at full capacity.

The LED chip market is good or bad, not only depends on the chip company, but also depends on the customer's production situation. Sanan Optoelectronics' customer, the relevant person in charge of National Semiconductor's sales department, stated that "Sanan Optoelectronics is its chip supplier. Since the LED lighting market in the first half of the year is relatively hot, the operating rate of National Star's optoelectronics business is 100%, plus the company itself. With expansion, shipments have doubled from last year."

At the same time, LED chip companies in Taiwan, represented by wafers, wafers, new century, Dingyuan, and Taigu, have performed differently in 2013 although their performance varied. Earnings, the industry's overall warming trend is obvious.

Lin Yida, an associate of Jingyuan Optoelectronics Marketing Center, once said: “The growth of Jingyuan Optoelectronics' performance in the first quarter of this year was significant. The revenue in the first quarter reached 6.24 billion yuan (New Taiwan Dollars), and it also hit the second highest level in history. The full production capacity, together with the shipment of new products, will optimize the product mix and the performance in the second quarter will be even better than in the first quarter.” Sure enough, Epistar’s total revenue in the second quarter was 8.126 billion New Taiwan dollars ( RMB1,681 million was a significant increase of 30.2% qoq, setting a new high for single-quarter revenue.

It is understood that international chipmakers such as Philips Lumileds and OSRAM have also achieved higher growth in their chip performance. Zhou Xuejun, Marketing Director of Asia for Philips Lumileds Lighting Co., Ltd., stated that “Since the chip business involves many segments, it has been added to four agents since last year and has used its own channels to expand market segments. Two-digit growth, and the company's overall orders to achieve steady growth, will see more orders in the second half."

According to the LEDinside survey conducted by the Green Energy Division of TrendForce, a global market research organization, in 2013, the output value of LED chips from mainland Chinese companies (land-funded enterprises with capital background, the same below) was 6.2 billion yuan, an increase of 17% year-on-year. LEDinside analyst Yu Bin said that in 2013, rapid penetration of LED commercial lighting penetration increased chip capacity utilization, but due to the continued decline in the price of LED chips, resulting in output growth rate is not as good as output, it is expected that in 2014 will be the same growth rate, push The output value reached 7.3 billion yuan.

In the first quarter of 2014, most of the companies had full production capacity instead of the off-season. In the second quarter, the major production equipment MOCVD of all companies will likely be fully operational, and the revenue performance will also challenge new highs. It is expected that the scale of output of the entire chip market will continue to grow rapidly after 2014.

LED chip factory increased price of code expansion

In the first half of the year, the performance of LED chip manufacturers became popular, and the chip market was extremely hot. It seems that the full-load capacity does not meet the needs of the downstream market. In addition, some chip manufacturers are also eager to balance supply and demand through the expansion of production capacity, and they also expect to further seize market share.

Among them, Sanan Photoelectric Co., Ltd. added 10 billion yuan to impact the global capacity leader, and invested in the construction of LED blue and green light epitaxial, chip R&D and manufacturing industrialization projects with a total scale of 200 MOCVD (based on a 2-inch 54-inch basis). Huacan Optoelectronics announced on April 18 that it plans to invest 1.18 billion yuan in the construction of an LED triple-phase project to expand its epitaxial wafer production capacity; Aoyang Shunchang announced on June 18 that it plans to invest 1 billion yuan to build an LED epitaxial wafer and chip industrialization project (II) Period;) Xinhai Yi end of the month LED chip production capacity is expected to reach 90,000; BDO ​​Runda is building Ye, Yangzhou base, the new LED chip production capacity will be three times the current; Ganzhao Photoelectric July 24 announcement, won the government The subsidy plans to invest 5 billion yuan in the construction of LED blue-green light epitaxial wafers, chips and lighting industry projects.

Yang Shiyi, head of Taiwan's New Century Optoelectronics Exhibition, said that although the company did not purchase new MOCVD equipment, the company made great efforts to increase the efficiency and product yield of the machine and also carried out substantive expansion.