Industry Concentration Continues To Improve, How Will The Domestic Packaging Giant Contest In The Future?
- May 19, 2018 -

In 2017, the demand of LED lighting, display and other downstream markets increased steadily, improving the prosperity of the packaging industry in the middle reaches of the middle reaches. Both revenue and profit have achieved rapid growth. At the same time, with the transfer of global LED packaging capacity to mainland China, China has become the world's leading LED packaging base.


According to the data of LED Research Institute (GGII), the global output value of LED packaging market in 2017 is 149 billion 300 million yuan, of which, China's mainland LED packaging output value of 87 billion yuan, up by nearly 18%, the global ratio of 58.27%.——led encapsulation


But we have to pay attention to that, with the rapid growth of the market, the market structure of LED packaging is also changing. It can be said that large enterprises take advantage of capital advantage and take the lead in scale, while small and medium-sized enterprises focus on market segmentation and take the "single product champion" route.


From the performance of several LED listed companies in 2017, 13 enterprises, such as mahlin, Hongli Zhi Hui and Guo Xing optoelectronic, have shown different growth in their operating income, of which Wan run technology is growing fastest, reaching 93.74%. In the net profit of listed companies, wood Lin is a well deserved "profit King". However, poly fly photoelectric and WAN run technology appear "increase income not increase profits" situation, net profit fell 61.44%, 5.01% respectively.——led encapsulation


In fact, the growth of the performance of listed companies is mainly due to their strategic positioning and adjustment. Leading enterprises in the industry or in strengthening the main industry at the same time to carry out the whole industry chain layout, or plan to expand production, mergers and acquisitions to increase the volume of the company, or to strengthen the LED automotive lighting, mini/micro LED and other high-end products development. It can be predicted that with the enhancement of the competitiveness of leading enterprises, the speed of mergers and acquisitions in the industry will accelerate, and the future industrial concentration will be further enhanced.


Actively expand capacity and make large scale


In terms of production capacity, the size of Mu Lin Sen is the largest in China. In 2017, Mu Lin Sen LED packaging revenue ranked fourth in the world, compared to 2016 up 3 places. However, he was not satisfied with this and continued to expand in capacity. In January this year, he received the approval of the national development and Reform Commission "the national development and Reform Commission of the national development and Reform Commission on the issuance of green bonds issued by the Limited by Share Ltd." it agreed that the company's public issuance of green bond vouchers was not more than 1 billion 500 million yuan, and the funds raised by 1 billion yuan were used. It will produce 100 billion light-emitting diode (LED) expansion projects annually.——led encapsulation


Mr. Lin said that the company has expanded its production in Ji'an and Xinyu, Jiangxi Province, especially the Ji'an base. The output value of the company is 160~180 billion, which will become the largest LED packaging production base in the world.


Hung lee Chi Hui has huge volume in terms of capacity. According to Deng Shoutie, Secretary of Hongli Zhihui board, Jiangxi Hongli has been operating normally, and the company's LED packaging capacity is 5000KK/ months. With the transfer of LED packaging industry to domestic, the size of LED packaging business will continue to expand, Li Guoping, chairman of Hongli Zhihui, said the company has steadily promoted the expansion of production for the future market demand.——led encapsulation


With the continuous prosperity of the small spacing industry, the space of China Star Electronics is considerable. It is understood that the National Star photoelectric 2016 capacity at the end of the year 1000KK/ months, in early 17 announced 200 million expansion of production, 2017 capacity doubles to the end of the year 2000kk/ months, now has become a global small gap LED package. In 2018, it will continue to expand over 30%, and there will be much room for expansion in the future.


LIAN Optoelectronics in 2017 benefited from the release of technological transformation capacity, and the backlight production and sales volume increased significantly over the same period last year. According to LIAN electric 2017 annual report, its LED chip production in 2017 reached 4 billion 600 million, an increase of 21.1% over the same period, and 1 billion 59 million LED devices, an increase of 20.9% over the same period last year.——led encapsulation


Since its establishment in 2011, trillion energy saving has been developing into the leading LED packaging enterprise in the LED packaging industry. By the end of 2017, "by the end of 2017, the single crystal capacity of the Zhao Chi energy saving package line reached 4000KK/ months, the production capacity of the light strip reached 550 thousand / day, and the monthly supply quantity guaranteed 3 million 500 thousand television production, according to the vice chairman of mega joint-stock, the director and general manager of the energy saving director and general manager. In addition, the Jiangxi production base will expand 1000 packaging lines to attack the LED packaging market. "


Adopt multiple strategies to improve competitiveness


Of course, in addition to the layout of the production capacity, Mu Linsen, Hongli Zhi Hui, National Star photoelectric, megabyte energy saving and Crystal Electronics and other leading enterprises are also actively expanding to new applications.


In 2018, Mu Lin Sen will continue to focus on the main business, continue to innovate, and increase product research and development efforts. To complete the major asset restructuring, integrate the acquired LEDVANCE assets, actively bring into play the synergy effect of OSRAM brand and business, expand the port of the company, open the global market quickly, and use various financial services and capital platforms to merge and merge the high quality products such as production chips, and build the company into a hug. There are LED leading enterprises in the whole industry chain of upper, middle and lower reaches.——led encapsulation


In addition, he will make full use of scale production and customer resource advantages to speed up the production and sales of LED lighting components, and form a production system with leading technology, cost saving and diversified product series, in order to increase the company's profit point; at the same time, further strengthen the construction of sales channels. To create a national, efficient and fast LED sales network, to consolidate the market position of the company, to form a competitive product R & D and technological innovation system, efficient and low-cost manufacturing system, and a broad marketing network system. We should actively expand overseas markets and focus on expanding the North American market.


In addition, in the future, he will increase the technical input to the IC package and the manufacturing center of intelligent manufacturing, with technological innovation to realize the sustainable development of the company and speed up the related work. Mu Lin Sen will also use LEDVANCE's channel, brand, technology and other advantages to expand the exit of the wood. I have to mention that Mu Lin Sen is also actively exploring new fields. In April this year, he announced that he would enter the aftermarket of automobile lighting.——led encapsulation


Hongli Zhihui will expand its LED lighting business in the future. It is not difficult to find that, in addition to LED's main package, Hon Zhi Hui has vigorously laid out the LED car lighting market in recent years, and has frequently signed a number of cooperation agreements around LED lights and other projects. In 2018, Hongli Zhi Hui will attach importance to the industrial cooperation with strategic shareholders, focus on the LED automotive lighting industry, search for the help of the company's technology, brand, channel and other aspects of merger and acquisition, speed up the business synergy of the various links of the LED automobile lighting business, and quickly enlarge the scale of the LED steam Che Zhaoming business market.


In addition, Deng Shoutie, Secretary of the board of directors of Hong Li Chi Hui also disclosed that the company will focus on the main business, combing the company's equity investment projects that do not belong to the LED packaging business, the LED automobile lighting business and the three major business sector services of the Internet car owners.——led encapsulation


The National Star optoelectronic will focus on the overall strategy of "based on encapsulation, big and strong, both upstream and downstream vertical development", and expand the diversification process of product and market in a timely manner. Guo Xing, deputy general manager of optoelectronics, said that the future will increase research and development in Mini/Micro LED, purple LED chip, VCSEL chip, CSP chip level package and so on, and continue to get more progress.


In promoting Mini LED and Micro LED chips, China Star has developed a 100 200um Mini LED chip, and the vertical structure Micro LED 50um chip is being developed. According to Ouyang Xiaobo, RGB, the first Mini LED display product will be launched in June.——led encapsulation


Trillion Chi energy will continue to adhere to the "craftsman spirit", to do specialized, do fine, make excellent, bigger. Zhao Chi, vice chairman of joint-stock and general manager of Zhao Chi energy saving general, said in the exchange conference of Jinsong, "do special" and give full play to the spirit of craftsman; "do fine", realize full coverage in the field of backlight and lighting source; "do excellent", mega technology and quality must be in the lead in every subdivision area; "big" and "big" Developing intelligent manufacturing, striving to expand the production capacity of backlight light source by 2 times in 2018, and the capacity of lighting source has expanded 3 times.


In 2018, mega energy conservation will continue to plough the LED industry, adhere to the "product guidance, product control leading, service leading" development concept, focus on the high-end LED market, and strive to integrate the independent research and development of superior resources and become the leading LED enterprises in China.——led encapsulation


In the field of LED backlight, mega energy saving will consolidate the existing market leading position, continue to improve the technological and technical level, continuously enhance the market competitiveness of products, further expand the scale of sales, enhance market share, and strive to achieve a global strategy for TV backlighting; in the field of LED, the company's technical advantages will be used. The quality advantages and cost control advantages will be focused on expanding high-quality domestic and foreign customer resources and deepening strategic cooperation on the basis of the main suppliers of first-line brands. At the same time, the introduction of more quality customers, the rapid expansion of business scale, with the company's CSP technology, filament technology and other new product development continue to force, construction of the enterprise core technology barrier, to strengthen the company's comprehensive competitiveness.


At the same time, mega energy conservation has begun to layout Mini and Micro LED, and continues to increase investment, in addition to cooperating with mega semiconductor, in the future display technology domestic lead.——led encapsulation


In the next five years, Crystal Electronics will continue to make deep ploughing in the three major business market influence of LED devices and components, high-end backlight LED devices and modules. At the same time, we will actively arrange the new fields of high end LED applications such as car, infrared and ultraviolet, establish and improve the high-end product oriented solutions for customers. Each business direction forms a specialized and group industrial layout. Vehicle lighting and plant lighting will have a certain scale of production capacity through endogenous development and foreign strategic cooperation. In the future, we will continue to increase our external cooperation and make it bigger and stronger quickly.——led encapsulation