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LED chip into the deepwater shuffle, a new wave of capacity release will finalize the pattern

Jul 07, 2017


LED chip end of the concentration has entered the deepwater area, the trend of the industry has been basically formed. To the three-Ann, Huazan-led chip leader echelon of the pattern has been set, and the rest of the other chip-end enterprises in the next wave of capacity release, will face what kind of survival status?


In order to understand the current chip end of the market situation of the current status of LED chip market development and technology strategy, TrendForce's research brand Ledinside Yu Guangya exhibition interviewed Huazan Optoelectronics Co., Ltd. Marketing Director Schungang Mr.

Mr. Schungang, marketing Director of Huazan Optoelectronics Co., Ltd


The increase in industry concentration leads to higher barriers to entry, and small scale will die in this wave of production.


With the development of the industry matures, market share increasingly to the technology and scale advantages of enterprises to accelerate concentration. The pattern of domestic chip is basically formed, and the industry also enters the stage of capital drive growth.


As unlisted small and medium-sized led Chip enterprises, in the absence of capital drive, even the opportunity to participate in scale warfare is not, especially the chip of this heavy asset investment link. Schungang also said, "Industry development to the present stage, chip-side competition is already a scale war, so not only to raise the threshold of new entrants, but also on the cost of small and medium-sized chip enterprises to withdraw."


According to Ledinside market data, by the end of 2017, Huazan and other LED chip production capacity will be greatly released, then small and medium-sized led Chip enterprises will directly into the winter. Although the number of visitors to the Guangya exhibition, the market and even the news, but for the dozens of old MOCVD small businesses, the future will always be cold, and it is likely to die in this winter.


Segment market opportunities, Chip end to the new person's space is small


When the traditional LED lighting display backlight market into a stable period, the industry is looking for niche markets. For a time, for survival in the edge of the LED enterprises are forced to look for a niche market to seek new machines, but things are not so easy.


In recent years, under the mainland chip package scale price war, the strong strategy, Taiwan LED factory has accelerated the transformation, after China abandoned Blu-ray, Bai-Hong through the investment Gao Hui electricity production of blue LED chip, at the end of 2016, discontinued all gallium nitride production line, into IR? Led, four yuan led. And as this year's LED lighting penetration rate continues to innovate high, the Taiwan region will continue to put into production of Blu-ray led manufacturers have become less and more, the mainland is not only, but also leading enterprises have been expanding production.


According to Schungang said, the chip end of the scale is increasing the threshold of the disguised increase, and it is difficult to have a new market segment, so that no size of the enterprise very good survival. The main reason is three aspects: first, the market segment itself is higher than the existing traditional led mature application, if you do not have the scale is difficult to enter. Second, now the market is more transparent, if there is no scale cost advantage, there is no technical advantage, then the new market segment, with the integration of the packaging plant industry, the new niche market into the enterprise is not much, leaving the space is not much, more and more difficult. Again, new technology or more cutting-edge things related to the relevant equipment, and early equipment must gradually be eliminated, because unable to adapt to the current technology, new equipment investment is too large, when many small and medium-sized enterprises were forced to give up the market.


New technology research and development, Huazan photoelectric began to increase investment last year, in which the infrared LED is expected to achieve production at the end of this year, with the well-known manufacturers to cooperate in research and development of micro-led project also achieved preliminary results. Deep violet, plant lighting and other market research and development are actively deployed.


Upside down layout flip, CSP, chip-end technology to the future of clarity


This year Guangya flip-chip, CSP has almost covered all the packaging factory, flip-chip, CSP in the LED industry for many years, the past domestic manufacturers CSP has been in the sample and small-scale stage, but enter this year has become the major chip, packaging enterprises, the focus of the exhibition products.


But as the flip chip extends out to do subtraction of the new technology CSP, the cost is very high, Schungang said, "The high cost is still confined to the market, but this is also a necessary route, because the new technology is the new niche market began to infiltrate." But in the long run, once the CSP, flip-chip from the cost, scale enough to mature, then its share will become larger.


Schungang also said that the current CSP product market development, is certainly not a cost-reason replacement. Although from the chip side, it is really high. That is because the process of flip-chip itself is complex, the product has not formed scale effect. But the company is now targeting flip-products more than cost added value to enter the higher-order market segments.


About Huazan CSP, flip the strategy, Schungang said, Huazan this year's exhibition products are to flip-focused direction, whether it is product line, product size or market segmentation strategy is more clear and clearer. At present, Huazan flip-chip CSP products are mainly aimed at the car market, backlight market and Flash market, and the company's flip-chip growth rate compared to last year 300-500%, and Q3 will continue to accelerate expansion.