[Source: "High-tech LED" magazine December issue (total 60th issue) | Dr. Liu Wei] The rapid growth of the LED chip industry in 2014 is coming to an end. As a key link in technology and investment, the LED chip industry has finally ushered in a “spring blossom†in 2014 after experiencing the industry downturn in the previous two years. It can be seen from the financial reports of domestic and foreign chip companies. In the first three quarters, the performance of the chip industry companies increased significantly, but the market declined in the fourth quarter.
After a short period of enjoying the market spring, the question left to the entire chip industry is: How to find a new breakthrough in the development dilemma?
Focusing on the "core" world 2014, while chip manufacturers are paying close attention to the "enjoyment" of the market's thriving good times, they are also pondering new ways to find new breakthroughs. Since the beginning of this year, we have seen a good market prospect. The domestic mainstream chip manufacturers are constantly moving. Sanan, Ganzhao Optoelectronics and other enterprises continue to expand production. New chip manufacturers are also putting into mass production. Tongfang shares acquired lighting company Zhen Mingli to complete the LED industry. Vertical layout. Each company has its own vision of market judgment and development strategy.
Huacan Optoelectronics insists on focusing on the "core" world and does not expand the entire industry chain. Our goal is to be a professional chip supplier to produce high quality LED epitaxy and chips. China's LED packaging and application companies have developed relatively early. We hope to use the professional division of labor in the industry chain to carry out effective market allocation and maximize the overall efficiency of the industry chain. Make more products that meet market needs and strive to stabilize the market share of the LED chip industry.
Outlook for “core†In the first three quarters of 2014, the entire industry showed rapid growth in domestic and foreign markets. The downstream application market and the improvement of the performance of domestic LED chips; the demand for domestic chips in the midstream packaging enterprises is soaring. The capacity utilization rate of the domestic LED chip industry in the past two years is almost saturated, but it still cannot meet the market demand. Chip companies have ushered in another spring.
Looking forward to the future, the LED industry, the future of the chip industry is definitely worth everyone's expectations. From the external environment, it has experienced the winter of industrial expansion in the past two years. This time, regardless of the technical level or the competitiveness of products, domestic LED chip companies can compete with international mainstream manufacturers. At present, domestic LED products have gone abroad, globally. They have already begun to accept chips from mainland China.
Exports have replaced the same type of products in South Korea and Taiwan, ensuring that the gross profit margin of the industry is lower than that of other countries. The industry has re-entered the benign stage of steady growth, and its development speed continues to lead the world.
Hua Can Optoelectronics' first three quarters of 2014 forecast showed that from January 1 to September 30, 2014, Huacan Optoelectronics' net profit increased significantly, up about 735% from the same period of the previous year. Huacan Optoelectronics Zhangjiagang plant area will further expand production, the scale advantage will further reduce costs; the finer production control will further enhance the competitiveness of products; the continuous improvement of internal management capabilities will also add new vitality to the development of enterprises. The thinking after the scale is bigger is more about how to strengthen the enterprise.
Spring <br> <br> HC SemiTek rapid growth in recent years due to strict anticipation of market demand. After HC SemiTek went public in 2012, although the LED industry as a whole is in a collective fatigue, excess capacity stage. After an accurate judgment of the market, especially the expectation of explosive growth in the lighting market, Huacan Optoelectronics established a large-scale wholly-owned subsidiary in Zhangjiagang with funds raised from the listing.
Following the successful completion of the first phase of Huacan Suzhou project, the main equipment of the second phase of the project has been completed, and RGB full color extension and chip production and sales have been realized. It is expected that by the end of 2014, the number of MOCVD will reach 117. The domestic chip factory is second. The company announced the announcement of the third phase of project expansion in April.
After the project is completed, it will form an annual output of 65.6 million LED epitaxial wafers and LEDs.
The production capacity of the chip is 26.24 billion. The company's market position and profitability have doubled, and the company's profits, especially operating profits, have grown significantly.
In 2014, the chip industry ushered in a once-in-a-lifetime recovery opportunity. From the outside world, the LED industry seems to be in the best of history. But we must continue to prove that while the industry opportunities, new breakthroughs will lead us to create more glory! (The author of this article is Dr. Liu Wei, President of Huacan Optoelectronics)
After a short period of enjoying the market spring, the question left to the entire chip industry is: How to find a new breakthrough in the development dilemma?
Focusing on the "core" world 2014, while chip manufacturers are paying close attention to the "enjoyment" of the market's thriving good times, they are also pondering new ways to find new breakthroughs. Since the beginning of this year, we have seen a good market prospect. The domestic mainstream chip manufacturers are constantly moving. Sanan, Ganzhao Optoelectronics and other enterprises continue to expand production. New chip manufacturers are also putting into mass production. Tongfang shares acquired lighting company Zhen Mingli to complete the LED industry. Vertical layout. Each company has its own vision of market judgment and development strategy.
Huacan Optoelectronics insists on focusing on the "core" world and does not expand the entire industry chain. Our goal is to be a professional chip supplier to produce high quality LED epitaxy and chips. China's LED packaging and application companies have developed relatively early. We hope to use the professional division of labor in the industry chain to carry out effective market allocation and maximize the overall efficiency of the industry chain. Make more products that meet market needs and strive to stabilize the market share of the LED chip industry.
Outlook for “core†In the first three quarters of 2014, the entire industry showed rapid growth in domestic and foreign markets. The downstream application market and the improvement of the performance of domestic LED chips; the demand for domestic chips in the midstream packaging enterprises is soaring. The capacity utilization rate of the domestic LED chip industry in the past two years is almost saturated, but it still cannot meet the market demand. Chip companies have ushered in another spring.
Looking forward to the future, the LED industry, the future of the chip industry is definitely worth everyone's expectations. From the external environment, it has experienced the winter of industrial expansion in the past two years. This time, regardless of the technical level or the competitiveness of products, domestic LED chip companies can compete with international mainstream manufacturers. At present, domestic LED products have gone abroad, globally. They have already begun to accept chips from mainland China.
Exports have replaced the same type of products in South Korea and Taiwan, ensuring that the gross profit margin of the industry is lower than that of other countries. The industry has re-entered the benign stage of steady growth, and its development speed continues to lead the world.
Hua Can Optoelectronics' first three quarters of 2014 forecast showed that from January 1 to September 30, 2014, Huacan Optoelectronics' net profit increased significantly, up about 735% from the same period of the previous year. Huacan Optoelectronics Zhangjiagang plant area will further expand production, the scale advantage will further reduce costs; the finer production control will further enhance the competitiveness of products; the continuous improvement of internal management capabilities will also add new vitality to the development of enterprises. The thinking after the scale is bigger is more about how to strengthen the enterprise.
Spring <br> <br> HC SemiTek rapid growth in recent years due to strict anticipation of market demand. After HC SemiTek went public in 2012, although the LED industry as a whole is in a collective fatigue, excess capacity stage. After an accurate judgment of the market, especially the expectation of explosive growth in the lighting market, Huacan Optoelectronics established a large-scale wholly-owned subsidiary in Zhangjiagang with funds raised from the listing.
Following the successful completion of the first phase of Huacan Suzhou project, the main equipment of the second phase of the project has been completed, and RGB full color extension and chip production and sales have been realized. It is expected that by the end of 2014, the number of MOCVD will reach 117. The domestic chip factory is second. The company announced the announcement of the third phase of project expansion in April.
After the project is completed, it will form an annual output of 65.6 million LED epitaxial wafers and LEDs.
The production capacity of the chip is 26.24 billion. The company's market position and profitability have doubled, and the company's profits, especially operating profits, have grown significantly.
In 2014, the chip industry ushered in a once-in-a-lifetime recovery opportunity. From the outside world, the LED industry seems to be in the best of history. But we must continue to prove that while the industry opportunities, new breakthroughs will lead us to create more glory! (The author of this article is Dr. Liu Wei, President of Huacan Optoelectronics)
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