2016 China LED packaging industry trend outlook

Key Analysis

In the second week of 2016, key stocks in the LED industry continued to perform poorly. The industry index fell by 12.5%, and 22 key stocks in the industry fell by 20%, with an average decline of 14.6%.

The statistics of the High-tech Research Institute LED Research Institute (GGII) show that the market size of China's LED packaging industry reached 64.2 billion yuan, a year-on-year increase of 13%.

GGII believes that: In 2016, China's LED packaging industry will further increase its concentration, and CSP, UV, and plant lighting devices will become the focus of the market.

High-tech observation

Nichia's new flip chip packaging technology breaks through the "Red Sea" competition (click)

The National Development and Reform Commission's six major lighting technologies detonated the 100 billion market lighting energy-saving renovation and re-launched (click)

OSRAM licenses white LED patent to Dongbei Optoelectronics (click)

2015 LED market analysis in Taiwan (click)

LED industry patent competition will enter a new era of flip chip packaging, CSP will become the main battlefield (click)

Patent ban is in the CSP or the market breaks out (click)

Market review

This week's high-tech LED industry index this week, the high-tech LED industry index closed at 1309.5 points, down 12.5%, the Shanghai and Shenzhen 300 index closed at 3118.7 points, down 7.2%, the high-tech LED industry index performance is weaker than the broader market.

This week, 22 LED key stocks fell, with an average decline of 14.6%. Except for the two companies that have been suspended, the remaining 20 stocks have all fallen. Among them, 4 stocks have fallen by more than 20%. The distribution is Changfang Lighting (300301), Huacan Optoelectronics (300323), Wanrun Technology (002654) and Guoxing Optoelectronics (002449).

2016 China LED packaging industry trend outlook

In 2014, China's LED packaging industry was advancing in silence, and the external attention of the industry dropped significantly compared with the previous two years. GGII has predicted that China's LED packaging industry will undergo major changes in 2015 and the following two years. Large enterprises, Evergrande, and rapid industrial technology upgrades will have a subversive change in the packaging industry that has been developing steadily.

Nowadays, the bells of 2016 have just sent away the footsteps of 2015. Looking back on 2015, the Chinese LED packaging industry, which was once relatively dull and less concerned, has undergone major changes in 2015 and is undergoing greater changes. At the beginning of the new year 2015, the silent packaging market was broken by the successful listing of China's LED packaging giant, Mulinsen. Then, Jinshajiang's successful acquisition of lumileds (although temporarily suspended by the US government) made China's LED packaging The market's attention continues to be hot, and then, China's LED packaging represents the industry extension of the company's Hongli Optoelectronics for the Internet and the Internet of Vehicles, the integration of Ruifeng Optoelectronics's same industry, the extension of the National Star Optoelectronics chip and the changes of controllers, plus The packaging of the large manufacturers of Mulinsen, Hongli Optoelectronics and the expansion plan of Zhaochi shares have made the Chinese LED packaging market in 2015 continue to be hot.

Not only that, the global economic downturn has led to a sharp slowdown in demand for LED applications, which has led to an unprecedented price war in the oversupply packaging market. The price of China's LED mainstream packaging devices has fallen by 50%. In the fierce competition and pressure from the continued expansion of large factories, in 2015, more than one-fifth of the packaging plants opt out or quit in disguise.

In 2015, the global LED packaging industry market reached 112.1 billion yuan, a year-on-year increase of 7.4%, of which China's LED packaging industry market size reached 64.2 billion yuan (including imported packaging components and international companies in the domestic production and sales), an increase of 13%. Planned to the consumption of the Chinese market, the global LED packaging and other markets totaled 47.9 billion yuan, an increase of only 0.6%. China has become the main production and consumption base of the global LED packaging industry, and with the increasing strength of domestic packaging plants in the future, China's LED packaging market will further improve its market position.

As China's position in the global LED industry continues to increase, international companies continue to increase the competitiveness of the Chinese market, while at the same time, domestic leading companies continue to increase production capacity and accelerate resource integration, in this opportunity and crisis At the moment of coexistence, where will China's LED packaging industry go? Looking forward to 2016, the High-tech Research Institute LED Research Institute (GGII) believes that China's LED packaging industry will show the following developments:

First, China's "global LED packaging device production base" has further increased its position, including various applications such as backlighting. The localization rate of devices has increased rapidly, and the pricing power of Chinese local enterprises has increased.

Second, the LED packaging industry has accelerated the elimination of competition. International companies and domestic large manufacturers continue to expand in the domestic market, and today's packaging industry device price levels have fallen to the bottom line, large manufacturers rely on centralized procurement and scale effects can still guarantee a certain profit, while domestic small and medium-sized packaging companies do not increase revenues Lee is gradually becoming the norm, and its living space is shrinking. It is only a matter of time before the batch collapses.

Third, the industry concentration has risen rapidly. In 2016, the concentration of China's LED packaging industry increased rapidly, and the turnover of over 1 billion became the symbol of the packaging leader.

Fourth, CSP, ultraviolet, and plant lighting devices have become the hotspots of the market. When SMD, COB and other devices have become the market's conventional products, their prices have fallen to the price of cabbage, which is destined to be the product of mass production of large-scale enterprises. SMEs have to seek profit growth points in emerging applications, CSP, UV and Plant lighting has become the focus of attention of enterprises.

Fifth, the CSP is about to rise rapidly. In 2015, CSP became a topic of discussion in all kinds of conference forums, on various media platforms or within companies. However, due to a series of constraints, CSP has not been popularized, and there are fewer companies in mass production. In 2016, all kinds of materials and accessories that cooperate with CSP will appear in large numbers. The soldiers and horses will not move and the grain will go first. The improvement of enterprise technology reserves and the maturity of supporting materials will definitely promote the rapid rise of CSP.


Name: Li Shengfa

Email: sf.


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