LED Intelligent Lighting Industry to Pick Up The Positive Outlook

LED lighting products

Chinese LED industry has experienced a "turning point" in the second half of 2013, specifically in the LED industry, the situation in 2012, almost all industry losses at the end of 2013 greatly improved. Recalling the first quarter of 2014, LED industry "warmer" signs more prominent, indicating strong demand for LED lighting has been transmitted to the downstream upstream packaging and chip companies.

LED Lighting Products to Expand Market Share

Chip Overcapacity Crisis Eased

The first quarter of 2014, China's LED industry output value reached 74.68 billion yuan, an increase of 25.9%, the industry as a whole start to perform well.

According to Engineering LED data display: the first quarter of 2014, China's LED industry output value reached 74.68 billion yuan, an increase of 25.9%, the industry as a whole start to perform well. Among them, particularly in the following aspects stand out:

The market share of LED lighting products continues to expand. Specific features:

First, the domestic emerging LED lighting business revenue in good condition. In the first quarter, the domestic LED lighting business revenue better. For example, the sun lighting LED lighting products in the first quarter revenue reached 300 million yuan, up 140 million yuan last year, double the growth achieved; HC SemiTek significant increase in first-quarter revenue increased by 150%; Sanan Optoelectronics first-quarter revenue growth of 30% ; Honglitronic first quarter revenues and net profit growth of 30.26% and 71.95% respectively.

Second, the penetration rate of LED lighting in the area of ​​continuous improvement. According to the first quarter 2014 data, by 2012 less than 3% LED lighting penetration increased to 7%. As 2014 will accelerate the LED lighting to replace traditional lighting industry will enter a period of rapid growth.

Structural overcapacity crisis eased chip links. Specific features:

First, the downstream lighting applications demand pick up, push the chip market and improve capacity utilization. First quarter 2014 production value of China's LED chip industry more than 20 billion, an increase of 21.6% growth compared to 2013 levels over the same period increased. Benefit from rising downstream demand, the first quarter of 2014 domestic chip manufacturers shipments grew rapidly.

Second, chip prices continue to decline unfavorable situation been reversed. After 2010 to 2013 continued to decline dramatically, falling chip prices relatively limited space. Into 2014, the rapid decline in chip prices trend already stalled, the overall performance of the first quarter chip prices stabilized, some manufacturers chip prices even rose slightly.

Sapphire material usher in a new round of investment frenzy. Specific features:

First, the semiconductor lighting market, and boosting the industry's demand for sapphire material. From the fourth quarter of 2013, the domestic LED lighting demand continues to increase, especially from the 2014 first quarter earnings report major vendors can be seen, LED industry profitability quickly strengthened. With this round of industry boom recovery, led the rebound in the market for a sapphire substrate material needs.

Second, the consumer electronics market, as represented by pulling the smartphone industry demand for sapphire material. Apple, Samsung, millet and other mobile intelligent terminal manufacturers have said in the beginning of the year sapphire material will be used in smart phones and wearable equipment products cover glass, and further increase the market for investment tilt sapphire. TrendForce forecasts for 2014, the mobile intelligent terminal sapphire material will be used and the number of LED sapphire substrate fairly, in 2015 the demand for LED sapphire substrate 2 times.

Industry Continues to Improve

Accelerate The Integration Process Chain

Second quarter of 2014, will optimize capacity utilization chips, LED backlight to enhance domestic market share, speed up industrial chain integration.

On the whole, the development of LED industry in the second quarter of 2014 will continue the steady trend in the first quarter, continues to improve, in particular, has a more optimistic outlook on chip development, raw materials, industrial applications and other areas, specifically in the following three aspects:

While chip and continuous release of raw capacity, capacity utilization will be further optimized. Outlook 2014 second quarter, is expected to apply as international and domestic manufacturers to accelerate the layout of LED lighting products, as well as to further accelerate the pace out of incandescent, LED lighting will drive the demand for rapid penetration. Overall, the 2014 second quarter LED chip capacity utilization will be further enhanced, is expected to reach more than 90%. Therefore concluded that it would continue to enhance pulling LED sapphire substrates and Mo and other key raw materials needs.

The market share of domestic LED backlight will be further enhanced. By the end of 2013, the proportion of domestic backlight worldwide has increased from less than 10% increase to 20%. Outlook 2014 as a whole, the proportion of domestic backlight will continue to improve, the global proportion is expected to reach more than 25%. Meanwhile, in 2013 the global market supply backlight focus shifted to the Chinese mainland, the backlight on the domestic manufacturers are expected to have a positive role in the 2014 second quarter. Meanwhile, the Electronic Development Fund for support backlit display chip will further enhance the competitive strength of domestic passion and backlight technology vendors. As the proportion of domestic promotion, there will be more manufacturers enter the backlight fields. Currently, that upstream HC SemiTek downstream Honglitronic are actively involved in TV backlight supply chain.

Industrial chain integration will significantly speed up the process. With the rapid development in recent years, government industrial policy guidance and LED lighting technology, LED industry consolidation significantly faster, with the core technology, patents, brand advantage, competitive and reasonable industrial layout of the leading enterprises through mergers and acquisitions has begun and acquisitions to enhance its market share. Outlook 2014 second quarter, as the primary means of industry price declines slowed, mature industry chain, LED industry is expected to further strengthen the trend of industrial concentration, acquisition integration will gradually evolve into a foreign enterprise expansion.