LED industry: how long it takes for overcapacity to stabilize supply and demand

LED is the abbreviation of LED, which has the advantages of high efficiency, long life, not easy to break, fast response, high reliability and other traditional light sources. Most of the energy-saving lamps, traffic lights, LCD TVs, outdoor large screens, and rolling subtitle billboards that can be seen every day are mostly LED applications.

Because of its energy saving and emission reduction characteristics, the LED industry has been listed as a sample of the national energy conservation and environmental protection industry. Since 2009, China has issued a number of policy support and encourages the development of the LED industry. The “Twelfth Five-Year Plan” clearly describes the development goals of the LED industry: “In 2015, LED lighting will occupy 30% of China's domestic general lighting market. Above, the output value is expected to reach 500 billion yuan." Under such a large environment, China's LED industry has entered the stage of "crazy" investment, and it has turned into a capital "darling". For this reason, the problem of excess LED capacity has followed.

LED industry: swarming four years ago, today's enterprises have closed down in batches

In the interview, the reporter once again visited the factory of Shenzhen Daeyejie Optoelectronics Technology Co., Ltd., and the original factory area of ​​Daeyejie Optoelectronics has multiple buildings. After the closure of Big Eye Optoelectronics in November last year for various reasons, the factory has been idle for so far. Now, a wall has been built in the factory area of ​​Daeyejie Optoelectronics, which divides the entire plant into two. Half of them have been rented out to other owners. It is understood that at the time of the peak of Daguangjie Optoelectronics, there were nearly 700 workers in the factory, with an annual output value of over 100 million. It is also a model enterprise in its industrial park. After 2009, Chinese investors swarmed into the LED industry, and the domestic LED industry's production capacity continued to expand, eventually leading to a large number of low-end production capacity, product surplus, price wars, bankruptcy and so on. Excess capacity has finally forced hundreds of LED industries to opt out of this circle.

Gong Wen, general manager of Shenzhen Jingtai Optoelectronics Co., Ltd. said: "This is like a marathon. There are thousands of players standing on the starting line, but not everyone can reach the end. And now In fact, the first group of the LED industry has not yet appeared. Many companies compete in the LED industry for the first group, some players may have accidents, such as falling, or being squeezed out of the track led to their Finally retired.

Gong Wen also said that the current capacity utilization rate of the LED industry chain is very different, especially the capacity utilization rate of the sapphire substrate and epitaxial chip in the upstream of LED is very low. According to the latest data from a LED research institute, the utilization rate of LED sapphire substrates in China was 36% in 2013, the utilization rate of LED epitaxial chips was 51%, and the utilization rate of LED packages was 80%.

The utilization rate of LED lighting applications is 61%, and the entire industry is still in surplus.

M&A finds that the capacity utilization rate of a few LED companies has increased

Li Zhongcheng, chairman of Shenzhen Kangshuo Exhibition Electronics Co., Ltd. also said that overcapacity should be a problem for every enterprise. The automation of modern enterprise equipment is getting higher and higher, and the problem of overcapacity is widespread in the whole industry. Experts in the industry predict that as of the end of last year, there are more than 8,000 enterprises in China's LED industry chain, and eventually hundreds of others may survive.

It is understood that Shenzhen Dehao Runda Ruituo Display Technology Co., Ltd. began to develop and manufacture LED full-color display screens in 2010. It belongs to one of the earliest enterprises in China to enter the Chinese LED industry. However, he has not escaped the impact of overcapacity. At one time, there was 30|% excess capacity. According to a team leader of Shenzhen Dehao Runda Ruitu Display Technology Co., Ltd., the current work shift was reduced from the previous two classes to one shift.

According to another related person of the company, the current production capacity of the factory is only about 70% in the past. After the merger of the original company and Dehao Runda, the projects involved in the production capacity have been expanded to the entire industrial chain. The company has broken through the limitations of the past and can play their cost advantage. After the two companies, Dehao Runda has obvious advantages in the whole industry chain.

In the LED industry, in order to digest excess capacity, everyone is almost racking their brains. Company mergers and acquisitions, resource integration has become a common method. With the date of the delisting of incandescent lamps getting closer and closer, new energy lighting is about to erupt in China. In 2012, Dehao Runda seized an opportunity to acquire about 20% of the equity of NVC Lighting. Strong alliance, opened the estuary of LED light source for Dehao Runda. According to related persons of Dehao Runda, in terms of display screen, Shenzhen Dehao Runda Ruituo Display Technology Co., Ltd. achieved the leading position in the industry last year. This year, from the current sales situation, it is still very optimistic and will remain stable this year. The forefront of the industry.

Gong Wen, general manager of Jingtai Optoelectronics, also said that Jingtai also set up a company last year to integrate these excellent customers, excellent resources, excellent products, find channels, find markets and find channels. Since its establishment last year, the company has helped more than a dozen outstanding customers find more than 30 million orders.