From the LED chip companies in the interim results, the first half of 2017 chip market competition is still fierce. But the price of LED chips has continued since the fourth quarter of last year's steady trend, the industry as a whole market for the better.
For the first half of the LED chip industry's rapid growth, as the net profit growth rate of the most powerful dry photoelectric has a strong voice. According to the photoelectric market manager Huodong Ming said that after the market fluctuations in 2015, the chip prices fell, the rapid expansion of packaging plant, combined with the national thirteen five plans to support the semiconductor industry, 2016 and 2017 the entire industry completely warmer. At the same time, the display industry due to the narrowing of the gap, but also increase the demand for the chip, which exacerbated the development of the industry and the chip out of stock.
For the second half of this year, the trend of the chip industry, Huodong Ming talked about the second half of the product prices stabilized, chip companies will gradually introduce more cost-effective products, the overall production and demand was balanced.
In fact, as early as 2015, China's LED chip prices fell rapidly, resulting in a lot of LED chip companies below the cost of selling prices, due to the rapid decline in prices led to the growth rate of domestic LED output also appeared to decline, many chip makers began to shrink Production capacity to cope with the rapid decline in prices, LED chip output in 2015 than in 2014 increased by 8.33%.
In the early 2016, LED chip areas of the problem of oversupply remains unresolved, and with the crystal power shut down 25% of the production capacity, small plant supply and reduce the downstream drive, supply and demand structure gradually adjusted, the second half of 2016, downstream demand driven Upstream LED chip in short supply, LED chip prices rebounded, which makes LED chip output growth rate rose to 11.54%, the total output value reached 14.5 billion.
Needless to say, LED lighting LED chip market is the main driving force for sustained and rapid development. The future with the small gap between the market, the lighting market demand for sustained and rapid growth, will promote the LED chip industry steady and rapid growth. GGII is expected in 2017 China's LED chip industry output value will reach 18.8 billion yuan, an increase of 29.6%; 2020, China LED chip industry output value will exceed 28.8 billion yuan.
It is noteworthy that the second half of the LED chip manufacturers with the gradual release of production capacity, industrial concentration to accelerate the promotion of leading enterprises profitability and market share is more prominent. For the chip industry situation, how to resolve the chip business? Fire Dongming said that the chip companies, should increase research and development efforts to enhance product performance and reduce product costs, while supplementing capacity, deepen cooperation with the downstream enterprises to form a stable supply relationship.
Over the past 15 years, China's LED industry experienced a rapid development period, "second five" during the average annual growth rate of 30%. At present, general lighting, backlight and other market growth, the rapid growth of emerging applications will become the late market growth of new kinetic energy, invisible light UV & IR, small spacing, automotive lighting, optical communications, plant lighting and other applications gradually rise. With the expansion of the downstream application market, the demand for upstream chips will be a considerable amount of space.