Global LED Lighting Market Is Growing Rapidly Chip Quietly Formed Oligarch
With the recent rapid growth of the global LED lighting market, LED stadium lighting penetration rate of 11 percent from 2012 increased dramatically to more than the current 30%. By contrast, Philips, Samsung, Osram and other international companies have decided to focus on the sale or spin-off LED lighting business. On the surface, these international enterprises to give high power LED flood light because of its low margins. However, fundamental research, or forced rapid rise of China's LED lighting industry chain enterprises and the enormous pressure of competition. Which significantly enhance the industrial concentration degree is one of the decisive factors in achieving the overall competitiveness of our country LED industry stairs. backpfrontp large number of enterprises, small-scale, horizontal uneven, lack of leading enterprises, who has been a sore point for China's LED industry development, and now, this situation is gradually changed. As one of the most convenient and effective way to rise the fastest, mergers and acquisitions increasingly 1000W LED flood light firms. backpfrontp compared to previous years, the current integration of industrial chain downstream packaging and lighting applications more frequent mergers and acquisitions among enterprises, but also by the strong integration of the direction of the weak into the strong M \u0026 M strong; and mergers and acquisitions in addition to the extension of industrial purpose chain to achieve diversified development, the more is the channel, brand and capacity considerations, in order to increase our strength, expand the scale. According to statistics, since the beginning of 2015, LED stadium floodlights integration of mergers and acquisitions in the field has more than 30, the size of funds for mergers and acquisitions has more than ten billion yuan. backpfrontp from the industrial chain link in the middle of the package, the industry has officially entered the competition phase-out period, in 2014 there are hundreds packaging companies were eliminated, the bigger trend is more prominent. With the size of the business expansion of listed companies and the release of production capacity, traditional packaged devices will enter the era of meager profit. And small businesses and limited technical capacity for mass production, it is difficult to compete with large enterprises form, not income does not increase profits further deepen the plight of small businesses in the body. Number of China's LED street lighting packaging size of over 10 million businesses will continue to increase. backpfrontp link from lighting applications downstream of view, with the lighting of a further decline in performance and cost, product homogeneity makes the competition between enterprises intensified. In order to build brand awareness and seize sales channels, lighting company ushered in a crucial period of integration, integration of acquisitions more frequently, the advantages of resources to further focus to the industry leader. China's LED lighting companies ready to undertake the baton from the hands of international companies to prepare. backpfrontp and downstream industry chain acquisition in full swing scene is different, the upstream epitaxial chip oligopolistic competition situation is emerging. Currently, the number of the upstream business has plummeted from more than 60 in 2009 to 20 or less, the actual functioning of the enterprise is only about 15, the top five chip companies market share has increased to more than 67%. backpfrontp So, the concentration of the upstream chip market seems much simpler upgrade Why? First of all, the purchase of equipment to establish a new chip manufacturing line require high sustained investment. Early Due to government subsidies, many enterprises to buy LED bay light MOCVD equipment, the construction of the plant, a large area LED chip project launched to form a group of industry leaders. With the phasing out of government subsidies, new entrants will be difficult to afford to work with industry leaders to form the desired competition equipment expenditures. Meanwhile, in order to expand the scale, we need to continue to invest in expansion or improve equipment performance, four inches higher than the purchase price of equipment and some experience poor condition of small LED tunnel light chip companies is difficult due to lack of cash flow for subsequent investments, lost After the subsidies will be eliminated. Secondly, improving product competitiveness requires a lot of R \u0026 D investment. LED industry in rapid development stage, LED arena light technology is developing rapidly, domestic and foreign technology and equipment and production technology constantly updated, chip luminous efficiency have risen to a higher level each quarter. backpfrontp relatively short period of time in order to reduce production costs in order to capture the market, companies need to invest a lot of manpower and material resources for product development and technology investment, for smaller company operating pressure. Finally, the decline in chip prices led to earnings difficulties. With the domestic chip production capacity further release, the chip market competition, lower prices too fast, further compressed upstream corporate profits. Enterprises with stable customers and bargaining power, to further strengthen the industry control, thereby forming a stable industry competition.