After years of development, China's LED industry chain has become more and more perfect, enterprises all over the substrate, extension, chip, packaging, application of various industries. However, looking at the overall industrial chain, due to the high technical and capital requirements of the upstream industry, domestic enterprises are rarely involved, so the industry has the characteristics of small number of enterprises and small scale. In contrast, due to the relatively low capital and technical requirements for downstream packaging and applications, this is precisely the same as the characteristics of domestic enterprises with less capital and weak technology. Therefore, there are more enterprises engaged in these two links in China. . This uneven distribution of corporate structure has led to the fact that China's LED industry is dominated by low-end products, and enterprises are facing severe price pressures for a long time. With the launch of the national semiconductor lighting project, the status of China's LED industry development is changing. China's LED upstream industry has developed rapidly, and the development of the chip industry is the most eye-catching. However, from the perspective of industry scale, packaging is still the largest industrial chain in China's LED industry. In 2006, the total output value of China's LED industry, including substrate, epitaxy, chip and package, reached 10.55 billion yuan, of which the output value of the packaging chain reached 8.75 billion yuan.
Market and policy are favorable factors for industrial development
In recent years, LED application markets such as display screens, landscape lighting, traffic lights, automotive applications, and backlights have sprung up. The increasing demand for LED lighting efficiency in these emerging application markets has created demand for medium and high-end products. With the increase in market demand, the pace of product upgrades in China's LED chip industry is gradually accelerating, and China's LED chip products will move toward high-end as a whole. On the other hand, the rapid development of China's LED packaging industry has also provided a broad market demand for LED chips. The expanding market demand provides a good external environment for the development of China's LED industry.
In addition to a good external environment, the state has also given strong support to the development of the LED industry. In 2006, according to the development status of China's own semiconductor lighting, the state has formulated a semiconductor lighting industry development plan in line with its own development and a 2006 technology development road map. In the 2006 technology development roadmap, investment in LED chips will account for 20% of the overall LED industry investment including materials, substrates, epitaxy, packaging, applications and equipment. The research focus will be on the production of GaN chips and Development of power chips.
Although we have extensive market demand and strong support from the state, we also have to admit that at this stage, China's LED chip industry still has development difficulties such as lack of core technology, shortage of professional talents, low product quality, and weak independent production capacity of equipment. Solving the above problems is the key to the sustainable and rapid development of China's LED chip industry.
LED chip industry develops rapidly
In the development process of China's LED chip industry, early products are mainly based on ordinary brightness, and only a few manufacturers such as Nanchang Xinlei. After entering 2003, several chip manufacturers represented by Xiamen Sanan and Dalian Lumei were established. In response to the demand of the chip market, these manufacturers have focused their products on high-brightness chips, which directly led to the rapid growth of China's high-brightness chip production. For a time, China set off a new upsurge in the development of the LED chip industry, and high-brightness chips have become the main driving force for the development of China's LED chip industry. In 2006, China's LED chip production reached 30.93 billion, with an output value of 1.19 billion yuan.
For high-brightness chips, it has been called the high-speed development stage since 2003. In particular, with the release of the production capacity of a number of high-brightness chip manufacturers such as Xiamen Sanan and Dalian Lumei, the domestic high-brightness chip production has experienced a spurt of growth, and experienced a rapid growth of 100% in 2003-2005. After the period, the output of high-brightness chips continued to maintain a 100% growth rate in 2006, with a growth rate of 101.4% and a chip output growth rate of 45.0%.
LED industry structure is changing
In the process of rapid development of China's LED chip industry, Taiwanese companies and Hong Kong companies are also indispensable forces. Different from the substrate and epitaxial links, in recent years, Taiwanese companies in China and Hong Kong in China have gradually entered the mainland to establish joint venture chip manufacturing enterprises. Among them, representative enterprises include Yangzhou Huaxia Integrated Photoelectric Co., Ltd. with Hong Kong-funded background and Taiwan-funded enterprises. Background of Mingda Optoelectronics (Xiamen) Co., Ltd.
With the increasing number of LED chip manufacturers, the growth rate of China's LED chip production value has been faster than the packaging process, which has led to an increase in the proportion of chip production value in China's LED output value. The proportion of chip production value in the overall industrial output value has increased from 5.4% in 2002 to 11.3% in 2006. It can be seen that the LED industry structure in China is shifting from the lower-end package to the chip with higher added value and more core value.
High-brightness chip yield will exceed ordinary brightness
Optimistic about the development prospects of high-brightness LED chip market, for a long time, enterprises will still focus on the production of high-brightness chips, which will drive China's high-brightness chip industry to maintain rapid growth momentum. CCID Consulting expects that high-brightness chip production in 2008 will exceed the output of ordinary brightness chips. By then, the output of high-brightness chips will account for 56.2% of the total chip production, and the output value will account for 72.8% of the overall chip output. So far, China's LED chip industry will officially enter the era of high brightness.
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