[Source: "High-tech LED" magazine August issue total 56th article | reporter Wang Cairong] LED packaging market is heading for three.
In the first half of this year, the LED terminal lighting market accelerated, which drove the surge in orders and shipments of packaging factories to a large extent. At the same time, the competition in the entire LED packaging market is becoming more intense and diversified.
For the time being, the international packaging giants represented by Philips Lumileds, Cree, Osram, Nichia Chemical, Yiguang Electronics and Seoul Semiconductor have basically completed the layout of the Chinese market. In recent years, the revenue performance in China has been quite eye-catching. . China's local LED packaging manufacturers have also entered a period of rapid development under the impetus of capital operation, market demand and technological breakthroughs.
In particular, LED packaging listed companies represented by Hongli Optoelectronics (300219.SZ) and Guoxing Optoelectronics (002449.SZ) have used the capital force to break through the technical bottleneck in recent years. After expanding the production capacity, they have gradually been able to cooperate with South Korea and Taiwan. Packaging manufacturers in other countries and regions are in court.
However, with the complicated and volatile market situation, many packaging manufacturers have realized the subtle changes in the current competitive situation and began to adjust and quadraticize their market strategies, business structure and technology updates.
International giants compete for fierce <br> <br> layout of the Chinese market for many years of international packaging giant, the hot growth in end-market demand, making it the biggest beneficiary 'Fengeng cake. "
Relevant statistics show that in 2013, the international LED packaging manufacturers' total revenue in the Chinese market was 2 billion US dollars, with an annual growth rate of 40%, mainly due to the patent advantage and benefiting from the rise of the lighting market.
At the same time, however, as domestic packaging manufacturers continue to improve in terms of technology and capacity, and the prices of Korean manufacturers continue to decline, the pressure on international packaging giants is increasing. In order to maximize market competitiveness, it began to focus on the Chinese market with a focus on new technologies, integrated product line layout and cost control.
Philips Lumileds is the fastest in response to technical layout and product strategy adjustments. Emmanuel Dieppedalle, vice president of worldwide sales and marketing for Philips Lumileds, recently stated clearly that in the future, Philips Lumileds will continue to maintain its leading position in the high-power field, using its rich technical reserves; on the other hand, from the early focus on high-power LED products The combination turned into a comprehensive LED category coverage.
It is understood that PhilipsLumileds has formed a comprehensive product line including high power, medium power, low power, array (including COB), and color LED package products.
In fact, with the rapid increase in the penetration rate of LED lighting, the lighting application market is gradually becoming more complex and diversified, and it is particularly important to optimize LEDs to meet the needs of different lighting applications. In this environment, who can launch a comprehensive and complete product line to match various lighting needs, who can stabilize the market's commanding heights.
However, it is an indisputable fact that the rapid decline in the price of packaged devices in recent years has also led to the pressure on the high-end market, such as Philips Lumileds, Osram and Cree, especially the Korean manufacturers led by Seoul Semiconductor and Samsung LED. Has already brought a greater threat to its existing market share.
Among them, Osram is the first to bear the brunt. In the past quite a long time. Osram has been ranked as the world's second-largest player in the LED industry, but ranked by the latest global LED company revenue data, the relevant statistics show that OSRAM has retired to fourth place.
The original reason is undoubtedly that Osram has always had strategic mistakes in the high-growth Chinese LED lighting market. Despite its high-efficiency, tens of thousands of hours of low light decay and other patents, the patents have been escorted, but the high price has made it more difficult to compete in the fierce competition in the general lighting market in the past two years.
"Unsatisfactory cost control has always been one of the important factors for OSRAM's failure in the Chinese market." An agent in the Shenzhen area told the "High-tech LED" reporter that the price of Cree's high-power devices has dropped very fast since the first half of the year. In comparison, the price of Osram declined less.
On May 21, 2014, the OSRAM Wuxi plant with a total investment of 250 million euros was officially put into operation, which is the third largest Osram plant in the world. Osram's move is obviously to reduce the production cost of LED device products by establishing a local chemical plant. However, some people in the industry question whether the cost of Osram can be reduced after the completion of the OSRAM Wuxi plant.
Compared to OSRAM, Philips Lumileds' cost optimization strategy is more inclined to seek OEM cooperation. A person close to Philips Lumileds said that Philips Lumileds is more willing to look for a foundry in terms of cost control. After all, as a strong foreign company, orders and payments are very stable. As long as the profits are acceptable, there are countless companies willing to work for them.
“The support of LED lighting technology and products in the Chinese market has driven the development of the global LED lighting market.†Shao Jiaping, general manager and technical director of Career China, described the status of the Chinese market. Sharp global market sales of nearly 30%.
It is not difficult to see that whether it is to speed up the overall product line layout, or strengthen the localization strategy, and strengthen cost control, the competition among international giants in the Chinese LED market will become increasingly fierce. Currently, global LED packaging manufacturers are struggling to compete and seize the market.
Domestic first-line manufacturers step into the "development turning point"
It is worth noting that the rapid increase in demand for LED lighting has also led to the rapid rise of local first-line packaging manufacturers represented by listed companies such as Hongli Optoelectronics, Ruifeng Optoelectronics and Guoxing Optoelectronics.
In recent years, these local first-line packaging manufacturers have used the power of the capital market to frequently raise funds and expand production. Both in terms of technology and capacity, they have rapidly improved and become the backbone of the domestic packaging industry. Their products are in performance and yield. The aspect has even reached the level of Taiwanese factories.
Driven by the huge demand for LED downstream terminal market and the accelerated release of production capacity, many domestic first-line packaging manufacturers ushered in a good harvest in the first half of this year.
According to the latest published mid-year report data, the operating revenues of the three listed companies in Guoxing Optoelectronics, Hongli Optoelectronics and Lehman Optoelectronics increased by 32.45%, 33.72% and 26.76% respectively in the first half of 2014, and the net profit increased by 29.30. %, 44.59% and 27.65%.
Although the performance revenue continues to improve, some LED industry veterans said that the current local first-line package manufacturers may be experiencing a dilemma of "development turning point."
"On the one hand, although the products of domestic first-line packaging manufacturers are close to the level of Taiwanese manufacturers in terms of quality and performance, in fact, from the current situation of traditional lighting manufacturers such as Sanxiong Aurora and Jiamei Lighting, they are purchasing in large quantities. The devices are still dominated by Taiwanese and Korean packaging manufacturers." The above-mentioned people told the "High-tech LED" reporter that if the domestic first-line packaging manufacturers choose to switch to the high-end, they compete with Taiwanese manufacturers and even international packaging manufacturers. If there is no advantage, if you continue to expand the scale of production capacity, the low-end market with huge potential for layout will lose the price competition to Mulinsen and the second and third-line packaging manufacturers.
In fact, the price competition pressure faced by domestic first-line packaging manufacturers in the first half of this year has begun to show. Taking Ruifeng Optoelectronics as an example, Ruifeng Optoelectronics recently disclosed the 2014 semi-annual results forecast. During the reporting period, the company achieved a net profit of approximately RMB 1963,665,000 to RMB 3,356,900, a year-on-year decrease of 25% to 10%. Ruifeng Optoelectronics said that due to fierce market competition and the strategy of making a strategic alliance with the major customers of LED lighting, the company's gross profit margin has declined.
“In general, let profit refers to the seller giving the maximum benefit to the customer in order to stabilize the commodity price, thus ensuring the stability of the market price of the commodity. Ruifeng Optoelectronics takes the initiative to take profit measures, resulting in a decline in gross profit margin, which can be seen in the first half of the year. The price competition of packaging manufacturers is still relatively serious." A person in charge of an LED company in Shenzhen said frankly.
This also reflects from the side that the current domestic mainstream LED packaging manufacturers' strength and voice is not strong enough. According to the statistics of the High-tech LED Industry Research Institute (GLII), the output value of the top 20 LED packaging factories in China accounted for only 21.8% of the output value in 2013, which is obviously far from the market's “two-eighth lawâ€.
Second and third tier packaging factory "counter-attack" opportunity <br> <br> can not be ignored is that in Taiwanese companies, Korean manufacturers and first-tier local packaging manufacturers constantly adjust the marketing strategy of pressure, second and third tier LED packaging factory located The market environment is getting more and more serious. On the one hand, most of the second and third line packaging factories focus on the low-end and mid-end markets, the production capacity is limited, and the price war is fierce, resulting in low gross profit. In addition, the packaging manufacturers represented by Everlight Electronics also announced the layout of low-end packaging from the second quarter of this year. market.
“The annual output value of the second and third line packaging factories is mostly between 1-3 billion yuan, and the production capacity is not large, but it is the most dynamic group in the packaging market.†Lin Jin, general manager of Shenzhen Xuyu Photoelectric Co., Ltd. said that Three-line package manufacturers are more flexible in introducing and introducing new technologies. Although the financial strength is limited, the ship is able to respond quickly and respond to the market in a timely manner.
Especially in the introduction of EMC packaging, flip-chip and other technologies, first-line packaging manufacturers often have to consider the best time point for layout, but second- and third-tier manufacturers can be pre-emptive, first eat "crab". The first-line packaging manufacturers often think that after the time is ripe, they will quickly enter, and they will intervene in the way of purchasing high-quality resources of the second and third-line packaging factories.
Therefore, if the second and third line packaging plants have obvious advantages in technical layout, they will often become the subject of mergers and acquisitions favored by the first-tier manufacturers. In June of this year, Hongli Optoelectronics acquired Smectic Optoelectronics to strengthen EMC packaging capacity, which is the most obvious example.
In fact, the acquisition of M&A has become one of the shortcuts for many LED companies to go public or to become stronger and bigger. In the future, as the concentration of the LED packaging industry further increases, more and more second- and third-line LED packaging plants will join the torrent of mergers and acquisitions.
In the first half of this year, the LED terminal lighting market accelerated, which drove the surge in orders and shipments of packaging factories to a large extent. At the same time, the competition in the entire LED packaging market is becoming more intense and diversified.
For the time being, the international packaging giants represented by Philips Lumileds, Cree, Osram, Nichia Chemical, Yiguang Electronics and Seoul Semiconductor have basically completed the layout of the Chinese market. In recent years, the revenue performance in China has been quite eye-catching. . China's local LED packaging manufacturers have also entered a period of rapid development under the impetus of capital operation, market demand and technological breakthroughs.
In particular, LED packaging listed companies represented by Hongli Optoelectronics (300219.SZ) and Guoxing Optoelectronics (002449.SZ) have used the capital force to break through the technical bottleneck in recent years. After expanding the production capacity, they have gradually been able to cooperate with South Korea and Taiwan. Packaging manufacturers in other countries and regions are in court.
However, with the complicated and volatile market situation, many packaging manufacturers have realized the subtle changes in the current competitive situation and began to adjust and quadraticize their market strategies, business structure and technology updates.
International giants compete for fierce <br> <br> layout of the Chinese market for many years of international packaging giant, the hot growth in end-market demand, making it the biggest beneficiary 'Fengeng cake. "
Relevant statistics show that in 2013, the international LED packaging manufacturers' total revenue in the Chinese market was 2 billion US dollars, with an annual growth rate of 40%, mainly due to the patent advantage and benefiting from the rise of the lighting market.
At the same time, however, as domestic packaging manufacturers continue to improve in terms of technology and capacity, and the prices of Korean manufacturers continue to decline, the pressure on international packaging giants is increasing. In order to maximize market competitiveness, it began to focus on the Chinese market with a focus on new technologies, integrated product line layout and cost control.
Philips Lumileds is the fastest in response to technical layout and product strategy adjustments. Emmanuel Dieppedalle, vice president of worldwide sales and marketing for Philips Lumileds, recently stated clearly that in the future, Philips Lumileds will continue to maintain its leading position in the high-power field, using its rich technical reserves; on the other hand, from the early focus on high-power LED products The combination turned into a comprehensive LED category coverage.
It is understood that PhilipsLumileds has formed a comprehensive product line including high power, medium power, low power, array (including COB), and color LED package products.
In fact, with the rapid increase in the penetration rate of LED lighting, the lighting application market is gradually becoming more complex and diversified, and it is particularly important to optimize LEDs to meet the needs of different lighting applications. In this environment, who can launch a comprehensive and complete product line to match various lighting needs, who can stabilize the market's commanding heights.
However, it is an indisputable fact that the rapid decline in the price of packaged devices in recent years has also led to the pressure on the high-end market, such as Philips Lumileds, Osram and Cree, especially the Korean manufacturers led by Seoul Semiconductor and Samsung LED. Has already brought a greater threat to its existing market share.
Among them, Osram is the first to bear the brunt. In the past quite a long time. Osram has been ranked as the world's second-largest player in the LED industry, but ranked by the latest global LED company revenue data, the relevant statistics show that OSRAM has retired to fourth place.
The original reason is undoubtedly that Osram has always had strategic mistakes in the high-growth Chinese LED lighting market. Despite its high-efficiency, tens of thousands of hours of low light decay and other patents, the patents have been escorted, but the high price has made it more difficult to compete in the fierce competition in the general lighting market in the past two years.
"Unsatisfactory cost control has always been one of the important factors for OSRAM's failure in the Chinese market." An agent in the Shenzhen area told the "High-tech LED" reporter that the price of Cree's high-power devices has dropped very fast since the first half of the year. In comparison, the price of Osram declined less.
On May 21, 2014, the OSRAM Wuxi plant with a total investment of 250 million euros was officially put into operation, which is the third largest Osram plant in the world. Osram's move is obviously to reduce the production cost of LED device products by establishing a local chemical plant. However, some people in the industry question whether the cost of Osram can be reduced after the completion of the OSRAM Wuxi plant.
Compared to OSRAM, Philips Lumileds' cost optimization strategy is more inclined to seek OEM cooperation. A person close to Philips Lumileds said that Philips Lumileds is more willing to look for a foundry in terms of cost control. After all, as a strong foreign company, orders and payments are very stable. As long as the profits are acceptable, there are countless companies willing to work for them.
“The support of LED lighting technology and products in the Chinese market has driven the development of the global LED lighting market.†Shao Jiaping, general manager and technical director of Career China, described the status of the Chinese market. Sharp global market sales of nearly 30%.
It is not difficult to see that whether it is to speed up the overall product line layout, or strengthen the localization strategy, and strengthen cost control, the competition among international giants in the Chinese LED market will become increasingly fierce. Currently, global LED packaging manufacturers are struggling to compete and seize the market.
Domestic first-line manufacturers step into the "development turning point"
It is worth noting that the rapid increase in demand for LED lighting has also led to the rapid rise of local first-line packaging manufacturers represented by listed companies such as Hongli Optoelectronics, Ruifeng Optoelectronics and Guoxing Optoelectronics.
In recent years, these local first-line packaging manufacturers have used the power of the capital market to frequently raise funds and expand production. Both in terms of technology and capacity, they have rapidly improved and become the backbone of the domestic packaging industry. Their products are in performance and yield. The aspect has even reached the level of Taiwanese factories.
Driven by the huge demand for LED downstream terminal market and the accelerated release of production capacity, many domestic first-line packaging manufacturers ushered in a good harvest in the first half of this year.
According to the latest published mid-year report data, the operating revenues of the three listed companies in Guoxing Optoelectronics, Hongli Optoelectronics and Lehman Optoelectronics increased by 32.45%, 33.72% and 26.76% respectively in the first half of 2014, and the net profit increased by 29.30. %, 44.59% and 27.65%.
Although the performance revenue continues to improve, some LED industry veterans said that the current local first-line package manufacturers may be experiencing a dilemma of "development turning point."
"On the one hand, although the products of domestic first-line packaging manufacturers are close to the level of Taiwanese manufacturers in terms of quality and performance, in fact, from the current situation of traditional lighting manufacturers such as Sanxiong Aurora and Jiamei Lighting, they are purchasing in large quantities. The devices are still dominated by Taiwanese and Korean packaging manufacturers." The above-mentioned people told the "High-tech LED" reporter that if the domestic first-line packaging manufacturers choose to switch to the high-end, they compete with Taiwanese manufacturers and even international packaging manufacturers. If there is no advantage, if you continue to expand the scale of production capacity, the low-end market with huge potential for layout will lose the price competition to Mulinsen and the second and third-line packaging manufacturers.
In fact, the price competition pressure faced by domestic first-line packaging manufacturers in the first half of this year has begun to show. Taking Ruifeng Optoelectronics as an example, Ruifeng Optoelectronics recently disclosed the 2014 semi-annual results forecast. During the reporting period, the company achieved a net profit of approximately RMB 1963,665,000 to RMB 3,356,900, a year-on-year decrease of 25% to 10%. Ruifeng Optoelectronics said that due to fierce market competition and the strategy of making a strategic alliance with the major customers of LED lighting, the company's gross profit margin has declined.
“In general, let profit refers to the seller giving the maximum benefit to the customer in order to stabilize the commodity price, thus ensuring the stability of the market price of the commodity. Ruifeng Optoelectronics takes the initiative to take profit measures, resulting in a decline in gross profit margin, which can be seen in the first half of the year. The price competition of packaging manufacturers is still relatively serious." A person in charge of an LED company in Shenzhen said frankly.
This also reflects from the side that the current domestic mainstream LED packaging manufacturers' strength and voice is not strong enough. According to the statistics of the High-tech LED Industry Research Institute (GLII), the output value of the top 20 LED packaging factories in China accounted for only 21.8% of the output value in 2013, which is obviously far from the market's “two-eighth lawâ€.
Second and third tier packaging factory "counter-attack" opportunity <br> <br> can not be ignored is that in Taiwanese companies, Korean manufacturers and first-tier local packaging manufacturers constantly adjust the marketing strategy of pressure, second and third tier LED packaging factory located The market environment is getting more and more serious. On the one hand, most of the second and third line packaging factories focus on the low-end and mid-end markets, the production capacity is limited, and the price war is fierce, resulting in low gross profit. In addition, the packaging manufacturers represented by Everlight Electronics also announced the layout of low-end packaging from the second quarter of this year. market.
“The annual output value of the second and third line packaging factories is mostly between 1-3 billion yuan, and the production capacity is not large, but it is the most dynamic group in the packaging market.†Lin Jin, general manager of Shenzhen Xuyu Photoelectric Co., Ltd. said that Three-line package manufacturers are more flexible in introducing and introducing new technologies. Although the financial strength is limited, the ship is able to respond quickly and respond to the market in a timely manner.
Especially in the introduction of EMC packaging, flip-chip and other technologies, first-line packaging manufacturers often have to consider the best time point for layout, but second- and third-tier manufacturers can be pre-emptive, first eat "crab". The first-line packaging manufacturers often think that after the time is ripe, they will quickly enter, and they will intervene in the way of purchasing high-quality resources of the second and third-line packaging factories.
Therefore, if the second and third line packaging plants have obvious advantages in technical layout, they will often become the subject of mergers and acquisitions favored by the first-tier manufacturers. In June of this year, Hongli Optoelectronics acquired Smectic Optoelectronics to strengthen EMC packaging capacity, which is the most obvious example.
In fact, the acquisition of M&A has become one of the shortcuts for many LED companies to go public or to become stronger and bigger. In the future, as the concentration of the LED packaging industry further increases, more and more second- and third-line LED packaging plants will join the torrent of mergers and acquisitions.
Guangzhou Ehang Electronic Co., Ltd. , https://www.ehangmobile.com