Analysis of four development trends of China's LED

2022-08-17
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Analysis of the four development trends of China's LED chip industry in 2018

in recent years, the new pattern of the LED chip industry has also seen two obvious trends. The first trend is the transfer of production capacity to Chinese Mainland. With the technology gap between domestic and international manufacturers becoming smaller and smaller, due to factors such as production costs, coupled with the active promotion of domestic government policies, foreign enterprises have slowed down the pace of production expansion, and even some enterprises are gradually shrinking production capacity. The proportion of domestic LED chip production capacity is getting higher and higher. In the long run, the scale of domestic LED chip market is bound to continue to expand. The second trend is the increasing concentration of LED chip manufacturing industry

domestic LED chip production capacity is gradually released

after the withdrawal of second-line manufacturers in and the subsequent withdrawal of backward production capacity, the main first-line LED chip manufacturers in the mainland, including San'an optoelectronics, Huacan optoelectronics, Aoyang Shunchang, Qianzhao optoelectronics, actively expand their production relying on capital, technology and scale advantages. By the end of 2017, the production capacity of China's LED chip industry was 8.6 million pieces/month

Chart 1: the quarterly production capacity of China's LED chips in 2017 (unit: 10000 chips/month)

China's LED chip industry has a high degree of concentration

by the end of 2017, the top four domestic chip manufacturers had accounted for more than 70% of the market share. The top four are San'an Optoelectronics (with a capacity of 2.8 million pieces/month), Huacan Optoelectronics (with a capacity of 1.7 million pieces/month), Aoyang Shunchang (with a capacity of 1 million pieces/month) and Qianzhao Optoelectronics (with a capacity of 550000 pieces/month), accounting for 32.6%, 19.8%, 11.6% and 6.4% respectively. Overall, the LED chip industry in China is highly concentrated

chart 2: China's LED chip market share in 2017 (unit: 10000 pieces/month,%)

the scale of China's LED chip market continues to increase

the experimental force of the spring is measured under a certain displacement.

China's LED industry started to develop from packaging, and the initial chips mainly rely on imports. In recent years, driven by the strong demand of downstream and the support of local policies, major domestic LED epitaxial chip enterprises have increased their R & D investment, Actively formulate the production expansion plan, and the market's investment in epitaxial chips continues to increase, accelerating the development of the domestic LED epitaxial chip industry

it also has the ability of mold design and processing

with the increase of production capacity of manufacturers in Chinese Mainland and the smaller and smaller gap in technology with Taiwan, the scale of China's LED chip market has increased year by year since 2013. According to the data, in 2017, the market size of China's LED chip (excluding Taiwan) industry reached 18.9 billion yuan, an increase of 48.8% over 2016, accounting for 37.1% of the global output value of Le but later D chips

chart 3: changes in the market size of China's LED chip industry in (unit: 100 million yuan)

the LED chip industry has initially formed five clusters

after several years of development, China's LED chip industry has initially formed five industrial clusters, mainly in the Yangtze River Delta, the Pearl River Delta, the northern region, Fujian Jiangxi region and other southern regions. At present, the Yangtze River Delta region is the main production base of China's LED chips. At present, the largest number of LED chip enterprises have been put into production, with the largest output value; From the perspective of future industrial planning, the Yangtze River Delta region is also the region with the largest planned production capacity. Statistics show that the Yangtze River Delta region will plan to introduce 1209 MOCVD in the future, ranking first among the five regions

chart 4: five major gathering areas of China's LED chip industry

with the narrowing gap between domestic technology and the technology of large international manufacturers, and the active promotion of domestic government policies, foreign enterprises slow down the pace of production expansion, and even some enterprises are gradually shrinking production capacity, and the proportion of domestic LED chip production is getting higher and higher. In the long run, the scale of domestic LED chip market is bound to continue to expand

the above data and analysis are from the forward-looking Industry Research Institute, "China's LED industry market forward-looking and investment strategic planning analysis report, the transition point of" Hooke zone "and subordination zone on the fiber stretch curve is called the subordination point

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