The five main themes of LED industry development in 2017

In 2017, in the context of the gradual recovery of the LED industry, it is destined to be an extraordinary year, but also a year of opportunities and challenges. Keywords such as policy, cross-border, innovation, shuffling, and price hikes will also become the main theme of LED industry development. 2016 is a year in which the LED industry has entered a deep adjustment. On the one hand, various new technologies, new products, and new applications are emerging one after another, providing a strong foundation and broad market space for the future development of the LED industry. On the other hand, while the LED industry is gradually entering a mature stage, the industry has become a whole. Stepping into the era of meager profit, industry competition is still fierce, and market chaos still exists. The market structure of the big Hengda and the strong Hengqiang has taken shape. 2016 has become a veritable adjustment year. In 2017, in the context of the gradual recovery of the LED industry, it is destined to be an extraordinary year, but also a year of opportunities and challenges. Keywords such as policy, cross-border, innovation, shuffling, and price hikes will also become the main theme of LED industry development. The five major themes of LED industry development in 2017 Keyword 1: Policy The State Council has previously issued a new plan for the 13th Five-Year Plan, which has brought new opportunities for semiconductor lighting and other fields. According to the data, on December 19, 2016, after the approval of Premier Li Keqiang, the State Council issued the “13th Five-Year National Strategic Emerging Industry Development Plan” (hereinafter referred to as “Planning”), and the “Planning” mentioned that it is necessary to upgrade the core infrastructure hardware. Supply capacity. Improve the level of critical chip design and develop chips for new applications. Accelerate the industrialization of 16/14 nanometer process and the construction of memory production lines, improve the technical level and industrial concentration of the packaging and testing industry, and step up the field of chip related in the era of Moore's Law. Realize breakthroughs and scale applications of active matrix organic light-emitting diode (AMOLED), ultra-high definition (4K/8K) quantum dot liquid crystal display, flexible display and other technologies. Promote research and development and industrialization of key technologies in smart sensors, power electronics, printed electronics, semiconductor lighting, inertial navigation, etc., and enhance the supply of new chip components, optical communication devices, and dedicated electronic materials. In addition to the national level, local governments are also actively introducing policies that are conducive to the development of the LED industry. On November 15, 2016, the Guangdong Provincial Government issued the “Guangdong Province System to Promote Comprehensive Innovation Reform Pilot Action Plan”, which also positioned LED lighting as a new pillar industry. The plan proposes: Strive to build a long-term mechanism to promote comprehensive innovation and reform, and initially construct an innovative economic system framework through three years of efforts. The first task proposed by the plan is to build a new industrial system, including: promoting high-end new electronic information, biomedicine, semiconductor lighting (LED), new materials, new hardware and other industries to become a new pillar industry. Keyword 2: Cross-border Cross-border, which is an annual hot word in 2016. With the help of the capital market, large enterprises will further pool their superior resources by integrating mergers and acquisitions, and continue to grow bigger and stronger. SMEs need to dig deep into the market segment and do a good job in order to find a way. In addition, in addition to the integration of next-generation information technologies such as the Internet of Things and big data, the trend of LED and intelligent manufacturing, LED and cultural industries, manufacturing and service integration is further evident. Cross-border, integration and development will be the mainstream of the industry in 2017. Under the influence of macroeconomics and weak growth of the semiconductor lighting industry, enterprises should consider improving their sustainable profitability and need to explore new profit growth points. This cross-border, strategy of implementing dual main businesses and even many main businesses has become a positive expansion of enterprises. One of the ways in which new profit growth points. There are many cross-border companies, and the business outside of LED contributes a lot to the company. At present, the LED industry cross-border areas are also very extensive, such as Lianjian Optoelectronics + Digital Media, Alto Electronics + Financial Electronics, Lehman Shares + Sports, Hongli Optoelectronics + Car Network, Liard + Culture, Qinshang Optoelectronics / Long Fang Group + Education, Wanrun Technology + Digital Marketing are all typical cross-border cases in the LED industry. For some well-funded listed companies, cross-border is undoubtedly an effective way to increase profits. However, there are also large risks in the process of cross-border, and the management level of the enterprise, the ability to resist risks, and the degree of grasp of the market in the new field are all very large tests. Among them, the biggest risk is that the dual main business formed after cross-border mergers often lacks synergy, and the later integration is difficult, and even becomes a mine that drags down the company's performance. Keyword 3: Innovation Technology innovation is the engine of industrial development and the weight of enterprise competition. The development of the LED industry has always been inseparable from the drive of technological innovation. The 2016 Science and Technology Awards Conference was held in Beijing on January 9th. The LED industry won the first prize of the 2015 National Technology Invention Award after the silicon-based high-efficiency GaN-based blue light-emitting diode. The multi-interface light-thermal coupling white LED package The optimization technology won the second prize of National Technology Invention, the key surface technology design of complex surface thermal function structure and the key technology project of controllable construction won the second prize of National Science and Technology Progress Award. It is foreseeable that in 2017, when industry growth continues to slow down, technological innovation will still be one of the most important keywords for the development of the LED industry. The entire industry chain is constantly innovating in the hope of seeking new breakthroughs. For example, in the field of upstream chips and packaging, the light efficiency has been repeatedly refreshed, the cost performance has been continuously improved, and the emerging technologies such as silicon substrate, flip chip, high voltage chip, COB, EMC, CSP package and so on have developed strongly, in the application field, intelligent lighting, plants Lighting, ultraviolet LED, infrared LED, automotive lighting and other technologies are starting to sound; more new materials and new technologies such as graphene, OLED, MicroLED, and laser lighting are emerging. It is expected that driven by technological innovation, both LED display and LED lighting market will usher in greater development and transformation in 2017. Keyword 4: Reshuffle In recent years, the LED industry has been fiercely competitive, and the global LED industry landscape has undergone major changes. In 2016, the wave of bankruptcy of LED lighting enterprises collapsed. One wave after another, thousands of enterprises closed, and the industry reshuffle surged. Large enterprises rely on capital and scale advantages to integrate in the industry, mergers and acquisitions, mergers and acquisitions, and scale expansion. Small enterprises take a different approach, proceed from their own advantages, take the road of differentiation, and lead the market in the market segment. In 2017, the industry reshuffle will continue. On January 4, 2017, Ford's Chairman Wang Gongjie issued a circle of friends to declare bankruptcy liquidation. As a business card for LED lighting in Zhongshan Guzhen, this LED lighting company with more than ten years of history closed down. In fact, the collapse of the tide and the reshuffle of the industry in recent years have become one of the main themes of the LED industry. Due to the maturity of the industry and the fierce competition, LED has entered the era of low profit, overcapacity, and the price has been almost transparent. The price war has been overdrafting the life of small and medium-sized enterprises. In addition, industry giants continue to open mergers and acquisitions and capacity expansion, industrialization concentration has been highly enhanced, the stronger the strong, the weaker out of the industry trend is becoming more and more obvious. Under the looting of the almost crazy market of big companies, SMEs can only extract surplus value in the cracks, and the living situation is getting more and more difficult. However, on the other hand, shuffling is also an optimization of the LED industry structure. After the big waves of the collapsed tide, the surviving enterprises are all excellent companies that can stand the test of the market, strong strength, excellent brand and excellent product quality. Under the guidance of these enterprises, the LED industry will be on the right track. Keyword 5: Price Increase On the first day of construction in 2017, LED chip leader Sanan Optoelectronics issued a price increase letter to the downstream, and some of its products increased by 8%. This is the news that Sanan Optoelectronics once again raised the price of LED chips after the price of some small and medium-sized products rose by 10% on August 25, 2016. Looking back on the past 2016, the LED industry has changed dramatically. After a period of cold winter, the LED industry began to show price increases in 2016, including upstream LED chips to packaging and downstream lighting and display fields, all of which have seen the first price increase in the past five years. . Industry analysts pointed out that this wave of price increases, in addition to demand, is partly due to the rising cost of raw materials, especially bulk metals such as copper and aluminum. At the same time, some insiders said that the market demand for LED chips will be strong for three to five years. On the one hand, since the implementation of the downstream domestic ban on white light from October 1st, the LED lighting fixtures will further accelerate the replacement of incandescent lamps, which will drive 60% of domestic LED lighting demand; on the other hand, the indoor and outdoor small-pitch LED market continues to be hot. The annual growth rate is 28%, and the demand in 2016 is more than 140 billion. In the next two years, there will still be nearly 40 billion new demand every year. The current small-pitch LED production capacity is about 70 billion, and the supply and demand gap is 50%. . As the leader of LED chip, Sanan Optoelectronics has raised prices, and it has strongly verified that the overall supply and demand pattern of the LED industry has undergone a fundamental change. Not only is the supply end contracted due to the elimination of backward production capacity, but also the downstream demand side of LEDs is growing steadily, and the profitability is steadily improving. Since 2016, LED chips and packaging have increased in price successively, marking the end of the LED industry chain reshuffle, and the industry has entered a stable income era from the era of excessive competition.

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