After two years of falling prices and the flood of bankruptcies, the domestic LED industry seems to be enjoying a spring breeze, showing signs of a spring revival. In order to explore the cold and heat of the LED industry, the author went to the pearl river bank of guangdong province to investigate the LED enterprises in shenzhen and zhongshan in the field, and to capture information from the first line and take the pulse industry direction.
LED people seem to have forgotten the nightmare of the last two years of big factory closures, and forget last year's ordeal. This year early spring, LED lighting seems to spring back overnight. The slow failure to open up the market's lighting industry began early in the year when orders poured in, so that the lighting chips were out of stock and the company's machines were running around the clock.
However, the city's recent quiet cancellation of the first LED industry's plans has poured cold water on the newly red-hot market, which has been interpreted by industry as a mixed response. Industry insiders admit that it remains to be seen whether the LED industry will continue to boom in the short term. Relying solely on price advantages, it is inevitable that the market will go down the low-end manufacturing path.
With the New Year
"Missing the sixth floor, are you going to miss the fifth floor?" The advertising slogan of the lobby of shenzhen huaqiang north LED trading center attracts many merchants. Although the construction of the subway has LED to the huqiang north road closure of the business circle three years, the LED trading center here still attracts a lot of merchants to come.
Soon after the start of this year, shenzhen huqiang northern LED trading center started to attract investment. The market will be expanded to the 5th floor by the first floor, and the total operating area will be 13,000 square meters, which can meet the needs of 420 LED manufacturers to open stores. Quite a few new businesses are entering, busy decorating the store and putting goods.
"We hope to gain more orders through the popularity and popularity of huaqiang market." Some new manufacturers say.
"This year's orders have been very busy." Wang lei, general manager of guangdong zhonger optoelectronic technology co., LTD., told reporters that since the beginning of the year, the international market has started to improve and the current order situation is more optimistic.
The small factory is still so, the big factory's order is more and more come. Philips Lumileds Asia marketing director xue-jun zhou an interview with a reporter, said the overseas market, and the second factory production base in penang Malaysia has started last year, but now the order is still busy at hand.
The warm breeze in the outside of the river is blowing a river of spring water. Some LED manufacturers in guangdong are busy recruiting workers again. In shenzhen nanshan district flourishing letter industrial park, Switzerland abundant photoelectricity, lehman photoelectric, alum to realize power listed company located here, such as the door of the companies are plastered with ads, LED machine factory is a busy day and night.
At the beginning of may, a reporter participated in the rifeng photoelectric investor research conference. As for the industry's recovery, company dong's view is that the backlit LED packaging market has been launched since the end of last year, thanks to the improved penetration rate of LED backlit TV. Earlier this year, foreign demand growth LED to a strong market in the first quarter due to higher acceptance of LED lighting.
"Konka, skyworth, changhong TV large domestic manufacturers have begun to adopt more energy-efficient LED back light, LED backlight market penetration in ascension to around 60% last year, is expected to reach 90% this year, the market capacity will reach 8 billion yuan." Switzerland abundant photoelectric secret in the zhuang dong thought, LED backlight market in the next few years will become increasingly saturated, and launched with the major south Korean companies such as samsung and LG OLED (organic light emitting diode, a new kind of technology), LED backlight of liquid crystal display technology is likely to be eliminated, in the next few years market potential in the field of lighting applications.
To this end, rayfeng is continuously adding the lighting packaging capacity. It is understood that at the end of February this year, rifeng photoelectric signed the Shanghai lingang LED lighting project, focusing on LED lighting packaging. The total investment of the project is about 500 million to 600 million yuan and is expected to be put into operation by the end of this year.
The industrial chain is not evenly distributed
The LED industry is heating up this spring, but the industrial chain is unevenly hot: the chips are in good shape, and the chips are suffering. There has been a steady supply of leds, but the competition is fierce.
Engaged in LED a substrate made in zhejiang enterprises, vice general manager, told reporters that although the downstream lighting market opened a mouth, overseas and domestic commercial lighting markets have a way out, but for the industry as a whole, is engaged in the upstream showed with chip manufacturers, excess capacity still suffering; The packaging, device and even the downstream end application manufacturers are more like the cow hair, and the good and the bad, the product is mixed, both aggravating the competition of the industry, and harming the reputation of the domestic brands.
In fact, the cold and heat from the industrial chain can be seen in the performance of listed companies.
In the first quarter of 2013, the total revenue of 25 LED enterprises listed in a-share was 9.9 billion yuan, up 12% year-on-year. Total net profit reached 700 million yuan, down 3% year on year. In the first quarter of this year, the overall performance of LED industry continued to increase, but the overall performance decline was significantly reduced. Among them, the net profit performance of the package and downstream application enterprises is better than that of the upstream chip enterprises, mainly due to the severe excess capacity of the upstream chip and the low probability of enterprise opening.
Completely independent research institutions LED industry research institute, according to a report issued by the epitaxy chip companies of Chinese mainland in 2012 has 74, including Taiwanese and foreign investment in the mainland production base, the LED chip output of about 7.2 billion yuan.
In the past few years, LED has been used as a sample of the country's energy conservation and environmental protection industry, attracting a lot of capital. In particular, in 2009 and 2010, there was a rush to invest in LED industries in China. In the early stage, the production capacity of overheated investment was concentrated in the second half of 2011 to the first half of 2012. The price of LED chips continued to fall.
In 2012, the average selling price of the subsidiary company hangzhou shiammin-core technology co., ltd. was down 48.04 percent from the previous project forecast.
"In the first quarter of this year, the market gradually picked up and the downstream demand was expanding, but the overall price of chips remained low and the market competition was still very cruel." Dong zhijiang, general manager of wuhandiyuan photoelectric, admitted that the severe situation in the upstream of the industry was the result of the blind subsidies of local governments and the blind expansion of enterprises.
"This is the fate of China's manufacturing industry, which looks like a landscape, and everyone wants to get in, and local governments are particularly happy with it." Dong zhijiang said.
Compared with chipmakers, the company is facing more competition. At the same time, because in the industrial chain of the intermediate links, most packaging manufacturer in "serial debt", namely the downstream terminal application factory default package vendor's money, upstream chip packaging manufacturers can only go to default and light-emitting materials manufacturers.
The "serial debt" at the end of the only slightly wind, packaging manufacturers face huge risk of funding. Previously, shenzhen jundorli, vision photoelectric and other large LED manufacturers collapsed, largely because of "serial debts".
In the past few years, the market for LED terminal applications has been equally unevenly distributed: the outdoor media market has been in a downturn, and the LED display market has been nearly saturated. LED backlight liquid crystal display products didn't open the market until last year, but after a year of explosive development, the market penetration rate of the product is almost 70%, but the impact of new display technology OLED is also faced; The lighting market relies on government projects like street lighting and subway lighting.
Big and small businesses are rushing to the beach
Today, LED lighting has picked up a bit in the business world, and almost all the companies in the industry chain are piling in.
At present, the manufacturer of the original display chip, hua can photoelectric, shilan micro has begun to transform the lighting chip development and production.
HuaCan photoelectric last year began to increase the intensity of illumination of white light chip market develops, HuaCan photoelectric a total investment of 1.8 billion yuan of suzhou zhangjiagang new project to be completed by the end of this year, after 50% of capacity will be released on the lighting white chip business.
Jiang zhongyong, general manager of hangzhou shiermin core technology co., LTD., said that the proportion of lighting chips will increase to 30% to 40% this year. In addition, the original lighting chip manufacturers, including dehaurenda, have also been able to expand their production.
Many packaging manufacturers also indicated that they are optimistic and interested in the field of lighting. According to zhuang, the LED backlighting business is only a support point for the company, and the future growth will be in the lighting field.
A rather interesting detail is that the reporter recently in zhongshan xiaolan town observed on a BBS about LED lighting, out of more than 300 large and small lighting enterprises, some of the original corporation to also do hardware devices, hope transformation as a supporting device, LED lighting lamps and lanterns, in order to capture a slice, thus industry situation.
In xiaolan town, zhongshan, one reporter saw that the first phase of the LED China city of jiuzhou has been completed, and the number of LED lighting companies in China is 100. The project leader said that the total investment of the project will be 1.3 billion yuan, with the total construction area reaching 400,000 square meters, which will likely be the largest LED lighting application trading center in China.
Some in the industry worry that while white leds are still relatively high, the industry will be able to squeeze again, with the release of capacity from the original and new factories.
More worryingly for the industry, multinational groups such as samsung, GE and cooper are stepping into the LED industry, churning out the domestic LED industry.
In April, tang guoqing, former general manager of the China market, quietly tracked down the general manager of the new samsung LED China. 'it's not long for samsung to enter the high-power LED lighting market,' tang said. 'if you want to do something in a competitive market, the best way to do that is to innovate.'
"Samsung's strategy is to do lose money buying and selling! You lose a cent, he'll lose three cents, in short than you low price, look at you and don't talk to. With you, he will be dragged down, don't talk to, the market will be his occupation. Anyway they group can catch up on other business profit, they lose." A director of the LED packaging factory, who asked not to be named, spoke of samsung.
The marketing director, told reporters that because samsung group give up liquid crystal display technology, fully representing the OLED panel, thus samsung LED some original backlight assembly capacity could transfer to lighting area, as a market entrants, samsung primary attempt to gain ground in price way.
Other multinational lighting giants are sharpening their knives and trying to open up territory in China. Philip kong, chief executive of philips greater China, revealed that philips' LED professional lighting plant in chengdu will start production in September. Osram has also recently launched nearly 20 LED products in China.