Profitability is expected to continue
LED Chip field is the high margin link of LED industry chain, the industry average gross profit margin is higher, the future high profitability ability rate will continue.
First, after the industry reshuffle, low-end production capacity is eliminated, large-scale domestic manufacturers to expand high-end production capacity, to seize market share, the industry to the situation of oligopoly, the end of 2017, three Ann and Huazan in the domestic market share is expected to rise to 40% and 30%, large companies have the capital, technology and scale advantages will widen the moat.
Second, upstream MOCVD equipment links, domestic manufacturers such as micro-semiconductor and the Sino-sheng photoelectric has gradually broken the foreign monopoly pattern, in 2016, the two domestic market accounted for more than 10%, domestic is expected to promote equipment cost reduction.
Finally, the chip manufacturers to the upstream integration, three and Hua can of the substrate sapphire materials are capable of production, raw materials from the production of further improve profitability.
Technology to promote the growth of the industry
Technology development will lead the future direction of the industry, with the technical strength of the manufacturers will emerge from the competition. On the one hand, advances in technology can reduce costs and improve the penetration of LEDs in existing applications, such as lighting; on the other hand, advances in technology can open up new applications, such as microled can be applied to display areas, is expected to promote the increase in demand for LED chips.
According to the calculation, when the micro-led in the consumer electronics terminals in the annual delivery penetration rate of 50%, according to the equivalent of 2 inch 200 yuan per piece of the price calculation, micro-led chip market size will reach 380 billion yuan, far more than the existing 45 billion yuan, the market development space is huge.
