Last year, the domestic LED display encapsulation and chip companies, can use two words to describe, one of which is a "price", packaging devices and chip prices fell, enterprises "production is not income, incremental ZengLi" like a piece of dark clouds hang over the whole of the LED display screen, middle industry; Another is the "expansion", from the beginning, whether packaging manufacturers, wood Tomlinson, cinda, the star, makar, crystal sets, shin kong platform, or chip manufacturers -- three Ann, HuaCan, silan Ming core in expansion has sharply, the whole LED display screen, middle industry was an expansion has "tide".
Recently, online news broke that Taiwan wafer photoelectric has raised some chip price of the product, pricing plus recently reported wood Tomlinson, it can't help letting person speculation: warming is LED display industry, or packaging components and the chip prices have bottomed out? With these questions, the author exclusively interviewed Yang tao, general manager of Marketing Department of hangzhou shiermin core technology co., LTD. He gave a unique interpretation of the current industrial development.
It is inevitable that the product will be cut down in the middle of the industry
In 2015, many packaging and chip manufacturers focused on the LED display industry showed the situation of "increase production and increase without increasing profits", and even more individual enterprises were forced to stop production. Silan Ming xin Yang tao said: "this is main or lower prices. The LED display industry gradually formed the pattern, but in the second tier of the vast majority of enterprises, expansion is used to reduce the cost, take market share. In the hierarchical chips or assembly house all filling capacity, the market supply, this is encapsulated device and the main cause of chip prices are falling fast. The enterprise in order to make up for this part of the loss, only by raising the production to make up, which in turn has prompted firms continue to expand produces."
And in the next few years, product technology is maturing, demand is growing, capacity is expanding, and the decline in product prices is painful, but it is inevitable. Forecast for the LED chip, Yang tao: "chip prices will decline this year, but won't appear last year, a 40% drop. Chip prices fall too much last year, this year compared with last year prices have recovered".
LED display industry pattern has decided industry shuffling will continue
There was an industry that said the LED display industry has been set. According to the market demand, we generally divide it into three parts: middle and high-end general market, performing arts, creative display market, channel wholesale market. As is known to all, standing in the tip of the pyramid listed companies the higher-ups has started "career change" to the media, advertising, play sports, they are the backbone of the leading industry development pattern, firmly hold the industry high-end large-scale projects, municipal projects in the market. The creative display market requires a lot of experience, with certain project accumulation and creative design and research and development ability, mainly in the field of performing arts and real estate, and high entry threshold. At present is still in the "warring states period" is the channels wholesale market, due to display manufacturing costs down, prices are cut and shrinking profit margins, listed companies are forced to give up part of the market, which makes more OEM, ODM channels (wholesale and OEM) manufacturers saw the opportunity, in succession to dodge, land grab, and for this big price war.
As Yang tao, though the industry pattern is set, but now the LED display application industry is still in a shakeout stage, middle will eliminate some on price alone, price is not dominant, enterprise brand awareness is not obvious, in the process of shuffling industry will gradually tend to be stable and healthy. In the middle reaches of the encapsulation link, too, is the basic pattern, such as wood Tomlinson, cinda, the star, makar, crystal etc. These large and medium size enterprises have occupy most of the LED display packaging device market, they will be able to meet the domestic and foreign from ordinary screen to the small distance between each level of the demand of the market. Upstream of the LED chip industry is needless to say, the original technical threshold is high, industry consolidation is already started and tends to be stable, the current domestic display in the field of LED chip mainly comes from wafer, three Ann, silan Ming core, dry HuaCan, according to these enterprises such as photoelectric.