In the LED display production process, the package is a very important part. In general, the encapsulation function is to provide adequate protection of the chip to prevent the chip in the air long-term exposure or mechanical damage and failure to improve the stability of the chip. For LED packaging, but also need to have good light out efficiency and good heat dissipation, good package can make LED with better luminous efficiency and cooling environment, thereby enhancing the life of LED. After a few years ago after the rapid growth of the global LED industry is gradually entering the "plateau", the growth rate continues to slow down. Although the industry growth rate slowed down significantly, but the industrial regional pattern is also changing, the global packaging capacity is accelerating to China. Among them, the Chinese manufacturers market share continues to improve, is playing an increasingly important role.
The global LED packaging industry is mainly concentrated in mainland China, Japan, Taiwan, the United States, Europe, South Korea and other countries and regions. From the LED industry development point of view, the first phase of Japan, the United States, Europe and other manufacturers rely on first-mover advantage, with technological advantages and equipment advantages, become the world's first LED packaging industry center; the second stage of Taiwan and South Korea has a complete consumer electronics Industrial chain, the segment of the division of labor is clear, and the rapid rise; currently in the third stage, the Chinese mainland is to undertake global industrial transfer, while benefiting from cost advantages and strong downstream product market demand, has become the world's major LED packaging production base.
LED packaging industry has gone through high-margin era, is to maintain a normal gross margin. Domestic LED packaging market, a number of leading enterprises continue to enhance the competitiveness of enterprises, the scale continues to expand in the domestic market competitiveness and independent intellectual property rights is not weaker than foreign and Taiwan's LED packaging business. Simply in terms of packaging links, the domestic enterprises have been with the international LED business comparable to the strength. At present, more than 1,000 packaging enterprises, with annual sales of more than 100 million yuan in the first camp has more than 30, sales of 10 million yuan to 100 million yuan between the second camp business less than 300, accounting for About 30%, most of the business sales of less than 10 million yuan. LED industry chain in the middle of the packaging link, Taiwan and South Korea significantly technological progress, sales catch up with Europe and the United States. Taiwan and South Korea have a complete industrial chain of consumer electronics, upstream and downstream industries supporting the supply and marketing stability, with backlight industry advantages, the LED packaging business output and revenue rank the forefront of the world, but they still have technical gap with the European and Japanese companies.