LED industry growth fast OLED will be valued

According to the data released at the seminar on the status quo and development trend of LED industry jointly organized by Peking University SME Research Center and Guotai Junan Research Institute, the total output value of China's LED industry in June is 150 billion yuan, and the compound growth rate will reach 25 in the next 3 years. %. Among them, LED downstream applications, display, backlight, landscape lighting and indoor lighting accounted for 75%, of which indoor lighting market size of 25 billion yuan, is the fastest growing part of LED downstream applications, is expected to reach 100 billion yuan in 2015 The compound growth rate will reach 50% in the next 4 years.

It is worth noting that due to the lack of core technology, most of the LED chips rely on foreign companies. The downstream cost of domestic LEDs is difficult to decline in a short period of time. Due to the large number of participating companies in the middle and lower reaches, the rapid decline of corporate gross profit has become a major concern of market participants. However, many LED companies are gradually shifting their focus from chip foundry to chip packaging to form capacity shifts. Jin Peng, secretary-general of the Shenzhen Semiconductor Industry Association and associate professor of the School of Environment and Energy at Peking University, said, “The degree of automation of chip foundries is high. Technological advances have led to a large proportion of revenues for R&D and equipment depreciation, while labor costs account for a relatively small proportion; The industry is just the opposite, which has prompted packaging companies to be more motivated to shift capacity to the mainland.” This is a big opportunity for the profitability of today's midstream and downstream LED companies. For example, Taiwan's products have a margin of operating profit margin of 10% and labor costs of 17%. %. Reducing labor costs and shifting to packaged chip business will bring new opportunities for mid- and downstream LED companies.

The development of the OLED industry also provides new profitable growth points for LED companies. OLEDs are light, thin, and power-saving. They are widely used in electronic products such as MP3 player screens. OLED display technology is also considered to be the next-generation mainstream TV display. Optimistic about the future development of OLED, mainly because "LED can stimulate more creativity and meet more individual needs than LED."

As early as April 2012, Korean electronics giants Samsung and LG announced that they would mass produce OLED panels. According to industry experts, many domestic LED companies will focus on developing OLEDs in the second half of this year, and catch up with Japanese and Korean companies in order to establish an industrial position in the OLED field.