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LEDinside's latest "2014 China Packaging Industry Market Report" by the global market research organization TrendForce, as the main raw material for LED packaging, the LED chip market in China reached 9 billion yuan in 2013, a year-on-year increase of 16.
LEDinside pointed out that the market demand for LED chips has been further enhanced by the lighting market, and the market scale continues to expand; however, the continuous decline in prices has led to a growth rate of market revenue that is far less than the growth rate of demand. The performance of some chip makers not increasing revenues and increasing revenues without increasing profits also reflects this fact.
The LED chip market suppliers in China mainly include Chinese local manufacturers, Taiwanese manufacturers and international manufacturers. China's domestic chip manufacturers mainly include Sanan Optoelectronics, Tongfang Optoelectronics and Huacan Optoelectronics; Taiwanese manufacturers mainly include Jingyuan Optoelectronics, Yuyuan Optoelectronics and New Century; and international manufacturers are mainly Puri Optoelectronics of the United States.
In the lighting component market in 2013, the market demand for medium power components was the largest. With the continuous improvement of the technology of chip manufacturers in mainland China, the gap between the overall performance level of medium power chips and Taiwanese manufacturers has been shrinking, and more and more packaging manufacturers are gradually accepting Chinese manufacturers' chips. In terms of quantity, it is expected that the market share of Chinese chips will reach 80%.
However, the price of Chinese chip makers in the market still has a gap with the price of Taiwanese manufacturers, and the domestic wafer price drop rate is higher than the Taiwan wafer price drop. Therefore, from the perspective of revenue scale, the market share of local manufacturers in 2013 was only 68.4, a slight increase compared with last year, with a total revenue of 6.2 billion yuan and an annual growth rate of 17; the market share of Taiwanese manufacturers was 28.4, compared with last year. Compared with a slight decline, the total revenue is 2.6 billion yuan, with an annual growth rate of 10.
According to LEDinside data, in 2013, Sanan and Jingdian together accounted for 51% of China's wafer market share. Looking at local Chinese manufacturers, Sanan Optoelectronics accounts for more than 40% of the total revenue of local chip manufacturers in mainland China. Looking at Taiwanese manufacturers, Jingdian accounts for nearly 80% of Taiwan's total wafer revenue.
The current profitability of LED chip manufacturers is still difficult to improve. Many small and medium-sized manufacturers are under pressure from funds, customers are difficult to maintain, and technology is difficult to improve. Some manufacturers have already withdrawn from the chip market. The large-scale manufacturers represented by Sanan are actively preparing for the expansion plan. With the development of the industry, the concentration of China's LED chip market will be further enhanced.
As the main material of the package, LED chips play an increasingly important role. Other accessories, including stents, phosphor powder, glue, etc., with new technology innovations, such as remote fluorescent powder, EMC / PCT bracket, etc., will also have a greater impact on the technical development of LED packaging. In addition, it can be seen from the market that the rise of China's packaging accessories manufacturers is also very obvious, and the market share rate is increasing very fast.
China's LED chip demand is increasing, corporate performance is not increasing