LED Industry Chain Performance Differentiation Midstream Package "Nice View"

With the LED industry listed companies have announced 2013 annual report, the

LED chip

entire LED industry chain in last year's operating conditions to be clearly presented. "Daily Economic News" reporter reporter learned statistics, in 2013 the entire LED industry sales volume, but the results diverged: upstream and downstream enterprises in trouble income does not increase profits, midstream packaging companies in revenue growth, profits will improve .

"2013 performance LED midstream companies really exceeded expectations," the LED industry Liyao Zheng Engineering Research Institute, said in an interview with reporters.

Chip Manufacturers Crazy Price War

"2013 was an exciting year, due to the rapid development of the lighting industry, driven by the downstream production can be fully exploited, but also to overcapacity slowed. 2013 but also for the industry who are very anxious of the year, although the order Many, revenue growth, but because of the price war of the reasons leading to increasingly low gross margin business. "Earlier this year, at an industry forum, Dean of Engineering LED Industry Institute Xiaofei said so.

LED industry price war, starting from the upstream chip. Institute of Engineering LED industry statistics show that in 2012 China LED chip prices fell more than 30% compared with the beginning of 2013, continued to decline about 20%.

"2012 chip price cuts on large, such as (individual types of chips) a dollar a year, to the end of the year only a hair five to two cents." BDO Runda stakeholders told the "Daily Economic News", for example Road.

Then, in the upstream capacity not yet fully digested the background, corporate re-expansion, will trigger a new round of crisis of overproduction?

LiYao Zheng believes that these new projects to be launched only after a few years of production, it will not cause a new short-term pressure on the chip market. He said that after the lessons of previous years, companies began to become more robust.

Liyao Zheng judgment, because last year most chips at a loss or breakeven corporate state, driven by downstream profitability this year is estimated to be gradually improved, as to how greatly improved, is still difficult to judge.

Midstream - LED Package Exclusive Triple-Double Advantage of Growth in Revenue And Profits

LED upstream and downstream, either by the pain of overcapacity, the market is facing a battle or suffering, in stark contrast, LED industry midstream, especially in packaging industry segments represented flies quite moist, Many companies realize the revenue and net profit growth of sync. LED packaging industry to trend growth, in addition to the lighting market due to lower growth in demand, but also to improve their competitiveness and business-related. And these favorable factors are expected to continue.

Needs,to Enhance The Competitiveness of The Double

"Downstream lighting, display backlighting and directly stimulating the growth of packaging companies." Zheng Liyao analysis pointed out.

Liyao Zheng also believes that as technology advances mainland enterprises, and improve the quality of products, market acceptance is gradually improving, mainland enterprises also grab some share of Taiwanese companies, which is an important reason for LED packaging company growth performance.

LED packaging companies also benefit from features where segments of the industry. Midstream enterprises are semi-finished products, not facing the end consumer, so we do not like that kind of large-scale construction of the downstream business brand and channel, lower selling expenses.