LED chips is an important part of the LED industry chain, and LED chip directly determines the development of the LED industry. Concentration of the LED industry will be further improved, and the led chip industry competition will become more rational. The major LED chip companies are also moving towards different development paths. So what are the strategies for the development of China's led chip manufacturers?
1. Adjusting our led chip product line and switching to new applications.
Due to the intensification of competition in blue LED chips, Taiwan LED chip companies, which are mainly based on crystal power, optical enamel and Huashang, are on the road to transformation. Quaternary LED has become one of the transformation directions. At the end of last year, the four-element LED revenue climbed to an all-time high, not only diluting the proportion of blue LED chips, but also having international visibility, which helped led chips manufacturers to improve their price protection. The last quarter of crystal power has been lifted to 15-20%, if this quarter four-element LED maintains high visibility, and does not rule out the continued rise; 50% of the light is mainly made up of four element; Huashang is fully converted into four element LED chips.
According to the led chip industry, when the terminal needs to use the iris recognition, night vision function, Internet of Things and unmanned auto driving, the quaternary LED is better than the laser in terms of price and illuminating angle. The Micro LED will be still developing in the long run stage, but the future is also one of the kinetic energy to pull red LED chips.
In addition, Micro LED chip is also the main direction of the major Taiwanese led chip companies. Micro-light-emitting diodes (Micro LEDs) is expected to become a new generation of display technology. Taiwanese companies such as LED Plants and Ronda are actively investing in the hope of accelerating the commercial production schedule. The Taiwan Institute of Technology is optimistic that it is available in 2017 with the Micro LED large public display.
Due to the small size of the Micro LED, the epitaxial and grain processing of the crystal power should be jointly developed with the transfer equipment and system applications. In the process of epitaxial and grain, the success rate of MicroLED is high. As for whether it can be mass-produced and shipped next year, it will be very hard. Micro LED needs to have good technology and patent ability, and it must be jointly developed by materials, equipment and system factories, and the threshold is high, especially red LED. Crystal has an advantage in killer applications.
Micro LED is a new technology and new application, and has the opportunity to increase the amount of LED used. This is also one of the directions for the application of Ronda's new layout. At present, many companies are in the process of layout, and the progress is different. As for when it is possible to commercialize mass production, he believes that the learning curve of poor initial yield and more people's investment after improvement can not be omitted. Technology is always innovated from generation to generation, and Ronda is ready.
Of course, automotive LEDs are also the focus of many chip manufacturers. Automotive LED lighting is one of the most highly regarded applications in the LED market. Benefiting from the fact that countries have successively required gasoline vehicles to improve fuel consumption through environmental regulations, as well as the trend of introducing new technologies into hybrid electric vehicles and electric vehicles, and the development of automotive electronics, automotive LED lighting has become an active research of many manufacturers. New areas of development and preparation.
2, capacity expansion, seize market share
In the past few years, the LED lighting industry has expanded madly, market demand has been excessively saturated, and serious overcapacity has caused price wars and industry reshuffles. Many LED companies have lost money in 2015. As the LED market picks up, the price of LED epitaxial chips has also stabilized. Nowadays, the expansion of the chip industry is booming. This year, for the peak production capacity of the LED industry, Sanan, Huacan Optoelectronics, Ganzhao and other leading companies have completed a new round of expansion plans.
On January 9, 2016, Sanan Optoelectronics announced that the net proceeds raised were 3.454 billion yuan. Among them, 1.91 billion yuan was used for the construction of Xiamen Sanan Optoelectronics Industrialization (Phase II) project. Xiamen Optoelectronics Industrialization (Phase II) has a total investment of 3,641.10 million yuan and a construction period of 24 months. It is mainly engaged in the production of LED epitaxial wafers and chips. At present, Sanan Optoelectronics' domestic market share is about 30%. It is expected that the company will expand production by 33% in 2017 and reach 2 million pieces/month by the end of the year. It is expected that the scale of revenue will surpass that of Jingdian and become the international leader of LED chips.
Similarly, Huacan Optoelectronics is not inferior on the road of expansion. In 2016, Huacan Optoelectronics, which invested 600 million yuan in expansion, was officially put into operation in July 2017. It will reach an annual output of 3 million LED chips after it is put into production. As a small-pitch LED chip leader, Huacan Optoelectronics will benefit and expand its production. It is expected to achieve a production scale of 1.4 million pieces/month of LED chips by the end of 2017, reaching the second largest in the world and the world's leading scale.
On May 15 this year, Dehao Runda disclosed that it has received approval from the CSRC to approve the company's non-public offering of no more than 368 million new shares. The total amount of funds to be raised will not exceed 2 billion yuan, and will be directed to LED flip chip and LED chip scale. Package project. Among them, the LED flip chip project has a total investment of 2.5 billion yuan, and plans to use 1.5 billion yuan to raise funds. It is expected to form an annual production capacity of 5 billion flip-chips.
On May 5th, Xiamen Ganzhao Optoelectronics passed the “Proposal on the Expansion of the Company's Main Business”. In 2017, red and yellow LED epitaxial wafers and chips will continue to benefit from the continued growth of small-pitch display. The expansion project has a total investment of 737 million yuan, which is used to implement the expansion of red and yellow LED chips and triple-junction gallium arsenide solar cells. The main input equipment is 20 quaternary MOCVD epitaxial furnaces and corresponding chip production equipment.
The Australian Ocean Shunchang LED chip is a white light lighting chip with an existing capacity of 200,000 pieces/month. In 2016, it produced 2.05 million pieces and sold 2.45 million pieces. The new capacity of 60 pieces/month is expected to start climbing in the second quarter, and it will be fully produced at the end of the second quarter. In 2017, the full production capacity can reach 7.5-8 million pieces. In December 2016, Aoyang Shunchang also cooperated with Mulinsen, the leading LED packaging company in China, to promote the second phase expansion of LED.
This year, Zhaochi shares also joined the field of LED chips. On June 30, Zhaochi announced that the company will invest no less than RMB 1.5 billion and no more than RMB 1.6 billion to invest in LED epitaxial wafer and chip production projects in Nanchang High-tech Industrial Development Zone.
3. Decentralized mergers and acquisitions to achieve diversified development
As a simple and fast development path, M&A has been pushed by many LED companies with strong capital. Through mergers and acquisitions, some enterprises are expanding vertically to carry out the layout of the LED industry chain; some enterprises have entered the new industry; more enterprises have gone abroad through the merger and acquisition of overseas companies to the world. In the field of LED chips, many chip companies have diversified through mergers and acquisitions.
Although, some days ago, Huacan Optoelectronics released a merger on the suspension of harmonious core light, but said that it will still start the transaction at the right time. In recent years, Huacan has successively acquired Yunnan Lanjing Technology (completed) and Meixin Semiconductor (in progress). Its mergers and acquisitions focus on the industry's cutting-edge technology and industry chain, and will continue to promote international cooperation and mergers and acquisitions in the future.
the acquisition of Meixin Semiconductor mainly focuses on the synergy between the LED and sensor industries, while focusing on the layout of the LiFi (visible light communication) industry. At present, the new MEMS sensors of Mesin Semiconductor have shipped more than 1 billion units, covering consumer electronics, automotive electronics and industrial control. As a key safety component of airbags, downstream customers of Mesin's high-precision accelerometers include Ford, GM, BMW, Mercedes-Benz, and Microsoft. The acquisition of Midea Semiconductor will help promote the company's LED products into the automotive industry supply chain.
Sanan Optoelectronics is also active in the M&A market. Previously, Xiamen Sanan Integrated Circuit Co., Ltd., a wholly-owned subsidiary of Sanan Optoelectronics Co., Ltd., established a wholly-owned subsidiary under the laws of the Cayman Islands to acquire GCS HOLDINGS with its own monetary funds of USD 226 million (approximately RMB 1.502 billion). INC.100% equity. Although the acquisition was not approved by the US Foreign Investment Committee, Sanan’s determination to seek diversified development has not stopped. Last year, it was also reported that Sanan Optoelectronics wanted to acquire Osram. Afterwards, it was only clarified that it was only preliminary contact, but from this we can glimpse the ambition and ambition of Sanan Optoelectronics.
4, strong alliance, all-round layout
If an industry is a company that is uncertain, then many companies will join forces to make the LED industry. Strong alliances, especially the upstream and downstream of the industry chain, have become more "hot" development models.
As the leader of the LED industry chain in China's lighting industry, NVC Lighting and Dehao Runda, the combination of the two has to be eye-catching. One is the leader of the channel and brand of the lighting industry. One is the leader of the upstream chip light source. Dehao Runda and NVC Lighting conduct cross-stream cooperation in the form of cross-holding; Mulinsen and Aoyang Shunchang form a subsidiary through joint venture. Cooperation; Sanan Optoelectronics and Career set up a joint venture company to focus on medium-power LED packaging products; Mulinsen and Huacan Optoelectronics signed the "Strategic Cooperation Agreement", in line with the goal of mutual benefit and win-win, establish strategic partnerships, etc. .
Implementing “strong alliances” between large enterprises and enterprise groups, especially the establishment of large companies and large enterprise groups that operate across regions, industries, cross-owners and transnational corporations can complement each other's advantages, optimize resource allocation, and reduce production costs. To improve labor productivity, promote research and development of cash restraint, and achieve the goal of expanding market share and obtaining greater economic benefits.
Label: Four strategies development of LED chip industry.
