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With the gradual advancement of national energy conservation policies and the outbreak of demand, the global LED industry has entered a period of rapid development. From October 1 this year, China will ban the import and sale of incandescent lamps for general lighting of 60 watts and above. From October 1, 2016, the import and sale of incandescent lamps of 15 watts or more will be banned. This basically means that the incandescent lamps will be completely shut down and banned. In the next two years, the demand for LED bulbs in China will be welcomed. Explosive growth.
Expansion of production is busy. At present, many LED chip manufacturers are rushing to purchase MOCVD from upstream equipment manufacturers. The upstream chip companies such as Sanan Optoelectronics and Huacan Optoelectronics continue to expand production, showing that the LED boom is extraordinary.
Sanan Optoelectronics invested 10 billion to purchase MOCVD equipment to 200 units, Huacan Optoelectronics invested 1.18 billion to expand epitaxial wafer production capacity, Guoxing Optoelectronics expects to increase packaging capacity by 40 in the middle of this year. In addition, Qinshang Optoelectronics plans to invest 500 million to expand its main business.
The vertical and horizontal performances are perfect. With the explosion of the LED lighting market approaching, industry competition is intensifying, the battle for the consolidation of the LED industry will intensify, or the group will be warm or strong, and the two-way cooperation intention between enterprises will become more apparent.
There is no uniform path within the industry for integration. Previously, Dehao Runda entered the NVC lighting industry and completed the merger of the industrial chain. The chip maker Tongfang shares skipped the package and directly acquired the downstream lighting application factory Zhen Mingli. Sanan and Sunlight Lighting are also vertically integrated above and below to open up the entire LED industry chain.
As a packaging manufacturer, Ruifeng Optoelectronics is more inclined to expand upstream and become a supplier of light sources. However, Guoxing Optoelectronics has gone in the opposite direction to expand the lighting field through its subsidiaries.
In addition to the company's vertical integration strategy, Huacan is more inclined to make horizontal expansion. Bian Difei, vice president of Huacan Optoelectronics, once said that Huacan may have horizontal integration but will never do vertical extension.
LED prices continue to decline, corporate competition continues to intensify, and resources are concentrated in advantageous enterprises. The LED industry has entered an era of upstream and downstream penetration.
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