2014 Gaogong LED Exhibition: Chip supply and demand shortage under the tide of industrial integration

[Text / Long Zonghui] The LED chip market situation has been very good this year.

Backlights and displays have been slower due to the slowdown in terminal market demand. However, the downstream lighting demand is strong, and most of the packaging factories have feedback that the current chip supply is not stable, and some products have short-term out-of-stock conditions. Zheng Tiemin, the general manager of Inspur Huaguang in 2013, said that the supply and demand of high-efficiency medium-power chips are relatively tight, and the overall price is relatively stable. There will be no continuous price decline in the short term.

On September 26-28, 2014, the 2014 High-tech LED Exhibition, which was first staged at Guangzhou Pazhou Canton Fair, will continue to join hands with well-known chips and related supporting companies in the industry to exchange technology trends and future development trends.

However, in the long run, the short-term shortage of LED chips will not become the norm. In particular, chip manufacturers such as Sanan Optoelectronics and Huacan Optoelectronics are actively expanding production.

Previously, Huacan Optoelectronics has already invested in the expansion of the third phase of the LED epitaxial chip project of Suzhou Subsidiary. The project is expected to be put into production by the end of this year. It will add 66,000 LED epitaxial wafers and 262.4 billion LED chips. ability.

Sanan Optoelectronics Wuhu Photoelectric Industrialization (Phase II) project will also start construction in the near future. In addition, the company will set up a subsidiary in Xiamen to increase the production capacity of LED chips. The total investment of the project is 10 billion yuan. The total scale of 200 MOCVD (a kind of equipment needed for the production of LED epitaxial wafers) will start 100 units in the first phase. year.

Once these capacity is released, as the supply of chips increases, the price of chips may enter a new round of decline. At present, some of the small and medium-sized chip factories sell some models with low profit margins. The more companies sell, the more losses they make, and the big manufacturers can fill the losses with some profitable product models. At the same time, the scale advantage of the big manufacturers will enable them to further reduce costs, but the survival environment will further deteriorate under the circumstances that the small and medium chip factories are unable to expand production.

Li Bingjie, chairman of Jingyuan Optoelectronics, believes that the penetration rate of LED lighting has increased sharply from 10%, and the market has entered the rapid growth period of S curve. From this year on, it is estimated that the LED industry will enjoy the golden three-year period in the lighting application market. .

In fact, SMEs are or have begun to reduce production capacity compared to the situation in which large plants are in short supply. On the surface, the overall market capacity is expanding, but more precisely the market is integrating capacity. The industry predicts that if the chip factory can survive the September of this year, it should not lose money next year, but this time the company must go through a round of pain, even including the possibility of integration by other chip manufacturers.

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