How long does it take for the LED packaging factory to "kill one thousand thousand damages?"

In recent years, with the continuous expansion of LED downstream application market demand, thanks to the advantages of human and raw material costs, and policy support, China has now become an important LED packaging production base in the world. After so many years of development in the packaging industry, domestic LED packaging companies have continued to grow and develop, and Mulinsen, Guoxing, Lehman, Hongli, Ruifeng, Jufei, Dongshan Precision, Cinda, Jingtai, and Meica A group of very large-scale packaging manufacturers. But an indisputable fact is that there is still a gap between China's packaging companies and the international packaging giant as a whole. Domestic packaging companies are big and not strong, and real industry leaders have not yet appeared.

LED packaging industry capacity distribution

From the perspective of the entire LED industry, in the early stage of development, the threshold for LED packaging is relatively low, and LED as an energy-saving low-carbon industry, driven by national policies, has attracted a large influx of funds, China's packaging industry is developing very Rapid. At present, China has formed four major LED production bases, mainly in the Pearl River Delta, Yangtze River Delta, Handan and Bohai Economic Zone. Among them, the Pearl River Delta is the region with the largest concentration of LED packaging enterprises and the largest packaging industry. The number of enterprises exceeds 2/3 of the national total, accounting for 58% of the total enterprises in the country. In particular, Shenzhen, in addition to the upstream LED epitaxial chip field, there is a lack of foreign exchange gathered a large number of packaging materials, equipment manufacturers and agents, the most complete supporting. Followed by the Yangtze River Delta region, the number of enterprises accounted for about 17% of the country.

In terms of packaging capacity, China is now far ahead of the world. According to relevant data, in 2016, there were more than 1,000 packaging companies in China, providing 70% of the global packaging output. As early as 2015, China's packaging output value has reached 21%, ranking first in the world. Followed by Japan's 20%, Europe's 18%, Taiwan's 15% market share ranked fourth. Today, Mulinsen's production capacity has settled in the world's number one position.

LED package problems

Although China is in the world's leading position in packaging capacity, the current operating conditions of many domestic packaging companies vary widely, and the development prospects of most SMEs are worrisome. LED packaging companies are also the same as LED display companies, but also the price war continues, killing one thousand self-destruction eight hundred. As the price of raw materials rises, vicious competition intensifies, and the increase in the packaging industry is not new.

On the other hand, most packaging companies are fighting in the low-end market, the market concentration is low, technology and technology can not keep up, only a small number of packaging manufacturers have made breakthroughs in high-end packaging technology, occupying a certain Market share. International giants such as Nichia, Toyoda Gosei, Cree, and Philips Lumileds and Osram rely on a sound industrial chain and strong technical strength. Monopolize the high-end product market.

Throughout the entire LED industry, mainly the core technology of LED upstream chip and epitaxial wafer market is monopolized by foreign giants; from the perspective of packaging industry, the current domestic LED packaging industry, in terms of technology, technology, etc., the highest level of some individual indicators There is actually no fundamental gap in the international highest level. There is still a big gap between the overall process level and the international level. In practical applications, even if the same chip is used, the packaged products are different. The enterprises that can compete with the international giants such as Nichia and Cree can be said to be rare.

At the current stage, the competitiveness of China's packaging enterprises is mainly reflected in the price, and there is no outstanding advantage in reliability and longevity. In addition, we are also at a disadvantage in terms of intellectual property rights, technical reserves are far from sufficient, and historical debts are still pending.

In addition, there are still many problems faced by packaging companies, including how to solve LED heat dissipation, how to reduce the thermal resistance of LEDs, how to increase the efficiency of LED light extraction, how to increase the reliability of LEDs, how to break through the barriers of patents in the production of white LEDs, etc. Wait.

Scale is still the main competition mode

Compared with most small and medium-sized packaging companies, the development and scale expansion of domestic leading packaging companies is very rapid. From the perspective of the entire LED industry, the domestic LED market has experienced rapid growth for many years, especially the ultra-high-speed growth of more than 30% for two consecutive years from 2013 to 2014. In 2015, it was affected by the global economic environment, and the overall performance of the industry was sluggish. Until the upstream LED chip prices stopped falling in 2016, a few manufacturers began to increase the price of LED chips, LED packaging prices began to stabilize.

In a market environment where profits are meager and price wars are frequent, package manufacturers can only rely on scale to ensure profitability. In 2016, Ruifeng Optoelectronics, Guoxing Optoelectronics, Mulinsen, Dehao Runda, Hongli Optoelectronics, and Xiamen Xinda expanded.

Xiamen Xinda, April 1, 2016, Xiamen Xinda Co., Ltd. announced that the company has launched a new round of refinancing, raising funds of 1.3 billion yuan for the security information technology platform, LED packaging and application products of the electronic information sector. The construction of projects such as expansion will realize the transformation and upgrading of the company's optoelectronic industry and the extension of application fields, create core application areas of the Internet of Things business, and accelerate the development of the electronic information industry.

Dehao Runda, on April 14, 2016, Dehao Runda issued a statement saying that the company plans to issue no more than 368 million shares at a price of 5.43 yuan per share, and the total amount of funds raised will not exceed 2 billion yuan. Of the funds raised, 1.5 billion yuan was spent on LED flip chip projects and 500 million yuan was used in LED chip-level packaging projects.

Ruifeng Optoelectronics, May 18, 2016, Ruifeng Optoelectronics invested 2 billion yuan in LED expansion and new energy projects started construction in Yiwu Industrial Park. Ruifeng Optoelectronics LED expansion and new energy projects use 198 acres of land, built in two phases for five years, mainly to build LED packaging and testing production bases and domestic advanced new energy projects. The project is expected to have annual sales income of 4 billion after reaching production in 2021. Above yuan.

Mulinsen, May 26, 2016, Mulinsen disclosed the “Report on the Issuance of Non-public Issuance of Shares and the Listing Announcement”. The number of non-public offerings of the company was 83,827,918 shares, and the issue price was 28.01 yuan/share. The total amount of funds is 2,348,019,983.18 yuan, and the net proceeds are 2,315,739,400.00 yuan. The issuers all subscribe for the new shares issued in cash. It is understood that this fund will be used for the Xiaolan SMD LED packaging technology transformation project, Ji'an SMD LED packaging phase I construction project and Xinyu LED application lighting phase I construction project. Among them, Xiaolan SMD LED packaging technology transformation project plans to use 616 million yuan of raised funds. The first phase of Ji'an SMD LED packaging project is planned to invest 943 million yuan, and another 757 million yuan of funds will be invested in the first phase of the new LED application lighting construction project.

Hongli Optoelectronics, July 22, 2016, Hongli Optoelectronics LED Industrial Base was officially put into operation in Nanchang Airport Economic Zone. According to reports, Jiangxi Hongli Optoelectronic Industrial Park Phase I project has a total investment of 1.09 billion yuan. It is the Group's largest LED production base and is equipped with first-class LED production equipment. It is expected that the first phase of LED packaging monthly capacity will reach 1000 KK by the end of the year.

Guoxing Optoelectronics, on October 11, 2016, Guoxing Optoelectronics announced that it plans to invest no more than 400 million yuan to expand the company's packaging project. The expansion project construction period is from December 2016 to June 2017. This is the third expansion of Guoxing Optoelectronics since November 2015. It is understood that this round of projects will be used for the expansion of National Star photoelectric white light, RGB packaging and components, RGB product categories include indoor and small spacing.

Once the capacity of these packaging companies is released, it will inevitably have a huge impact on the market. Whether the future packaging companies will trigger a new round of price war remains to be seen. However, packaging manufacturers rely on scale to ensure the survival and development of the situation, will be unlikely to change in the short term. Only when the industry concentration is further improved and the integration is continued, the price war issue is likely to stop, and it is possible for the packaging manufacturers to realize the transformation from the scale to the fight technology and the craftsmanship.

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