LED chip industry market rebound

Following the March part of the LED packaging manufacturers prices, Epistar recently in the mainland only official dealer crystal ingot morning Optoelectronics represents part series, LED chip prices will rise. The Epistar LED chip prices to be interpreted as "because of the recent variety of raw materials and rising labor costs, the company currently has more than costing price, the company plans to gradually increase the current sale price of the wafer-part series." We believe the increase is due before the LED chip overcapacity obvious, the price decline is too large, after the chip maker raised for only a certain return to normal profit levels. However, prices of packaging manufacturers to chip manufacturers prices, we can see the overall supply and demand relationship LED industry is gradually improving, several years ago LED prices will not fall to the cliff type, industry boom continued to improve.

LED chip industry market rebound

LED bulbs to replace 60W average price, for example, 2013--2015 year decline, respectively, 30.74%, 23.36%, 11.59%, the price decline has slowed down in the future LED decline will continue this trend. From the supply side point of view, LED price declines tend to converge for the following reasons: subsidies will decline; the supply side Epistar and other vendors will be contracted; package size growth decline.

2015 the global LED lighting penetration rate reached 27%, and to maintain an upward trend. We believe that the domestic LED lighting penetration rate slightly higher than the global penetration level of about 30%, there is still considerable room for development. According to incomplete statistics, more than 35,000 LED enterprises above designated size enterprises have more than 8200. Recalling the traditional electronics industry, such as televisions, refrigerators, air conditioners, the top 3 manufacturers market share of more than 50%, while the LED display industry has at least hundreds of manufacturers, the top three manufacturers of the total market share of less 20%. Therefore, LED industry market concentration is bound to accelerate the upgrade.

With the bottom and increase industry concentration of LED prices, we are optimistic about the long-term prospects for the development of LED, "the bigger" of the industry-related companies will benefit from a logical, therefore we recommend Hongli Opto-electronic focus. Hongli Opto-electronic in the bigger and stronger the main industry, while actively layout "LED + Internet + financial vehicle networking" ecosystem. We also recommend LED chip makers focus on three safety optoelectronics, HC SemiTek like.

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