LED chip market, survival of the fittest

　　2013 is still relatively uncertain stalemate with the LED chip market this year, but began to clear, some small, there is no listing of chip companies have begun to seek acquisitions and partnerships, and some even have been discontinued, ready to exit this area. Last year, companies are still struggling to be changed, and now see only listed company continues to adhere to. Precipitation in the industry more than a decade, experienced practitioners sensitive to discover, LED chips, has opened a centralized pace, perhaps within two years, will be decided at death.

　　Of course, the same price does not mean that the chip companies do not profit. Due to advances in technology, some chip companies in maintaining the quality of the premise, began to make a smaller chip area. In the electrical properties, brightness same situation, narrow area, yield per unit of raw materials increase. As originally a two-inch wafer can do thirty thousand chips, the chip size reduction can do thirty-five thousand chips, and every single chip in brightness and prices remain the same, then the extra five thousand is profit, so many companies are trying to improve the technology and then get greater profits.

　　Current prices still have room to fall. According to law Hydes LED industry (HaitzLaw), production technology continues to progress, productivity and product yield continued to increase, the price of the chip will be going down without a doubt. Until then, the technology behind the legalistic LED chip companies will be eliminated. Meanwhile, the company must also pay attention to reduce the area of performance, if the same area, a company's product brightness lower than others, a piece cut out of the same area of the wafer chip selling price will be less than the others, it will also losses, even leading companies no longer operating. In addition, the chip company's cash flow is very important, if the cash flow liquidity does not survive, will face great risks.

　　Future size of the chip will have one or two Chinese companies will become increasingly large, the overall pattern should be a mostly small, as Taiwan is now a large chip companies, others are smaller companies, the big house companies will occupy the entire chip market share between half to one-third.