LED packaging market survey analysis

According to the author's visit, a traditional packaging company did not produce LED patch lights, but the company's stores have been filled with LED bulbs and LED candle bulbs with patches as light sources. Obviously, traditional packaging companies have to make concessions to reality in order to survive. Traditional packaging companies do not survive easily.

Seven packaged masters master the lifeblood of packaging

As we all know, China is a big LED packaging country, but it is mainly concentrated in the field of low-end LED device packaging, and few companies involved in the field of high-end LED device packaging. At present, there are more than 1,600 packaging companies in China, but the large-capacity enterprises only have the listed Mulinsen, Guoxing Optoelectronics, Hongli Optoelectronics, Jufei Optoelectronics, Changfang Lighting, Ruifeng Optoelectronics, Wanrun Technology, and Ray. Man Optoelectronics, Goer Acoustics, etc.

However, only the top seven companies belong to the truly large-volume LED packaging listed companies. Of course, Lehman Optoelectronics used to be a leading enterprise in the packaging and application of high-end LED displays . However, in the past two years, Lehman Optoelectronics has been running a bit "biased", moving towards application, paying more attention to investment opportunities in sports media, and trying to Make corresponding layouts in the ecological chain of football and sports industry. One of the listed companies is also engaged in LED packaging, which is Goer Acoustics, but Gore Acoustics focuses on optoelectronic products, electronic accessories, electro-acoustic devices, etc. LED packaging is only a small part, compared with LED packaging related projects. In recent years, it has mainly invested and acquired in the fields of electronic components, sensors, and wearable devices.

SMD patch is still the mainstream of the market

Most of the seven major packaging giants such as Mulinsen, Guoxing Optoelectronics, Hongli Optoelectronics, Jufei Optoelectronics, Changfang Lighting, Ruifeng Optoelectronics and Wanrun Technology are listed on the LED lighting devices such as SMD SMD and series COB products. There are also some companies that mainly use LED display devices. However, by looking at the 2014 annual report of each LED package listed company, the author found that basically SMD patch is still the core of the above-mentioned package sales. Taking Guoxing Optoelectronics as an example, the company's production and sales volume of SMDLED products increased significantly in 2014. Among them, the sales volume increased by 3.389 billion from the previous year, an increase of 57.18% over the same period of last year, and the production volume increased by 5.412 billion from the previous year. It increased by 78.60% year-on-year. In the main business structure, Guoxing Optoelectronics' revenue in 2014 was 1.541 billion yuan, but LED devices accounted for 953 million yuan, and the gross profit margin was as high as 25.59%. It can be seen that the LED patch still has a large room for development.

It is precisely because the cake in the LED patch market is huge, whether it is the above-mentioned package, or small and medium-sized packaging companies, they are desperately expanding production. In this regard, the author could not help but worry that the "closed tide" of similar packaging companies in 2012 will come again.

Good grades but there are hidden concerns

In the first quarter of 2015, most of the above seven major packaging giants achieved good results, such as Mulinsen, Guoxing Optoelectronics, Hongli Optoelectronics, Jufei Optoelectronics and Ruifeng Optoelectronics increased revenue and increased profits. Of course, not every LED package can be achieved. In the first quarter of 2015, the forecast showed that Ruifeng Optoelectronics and Wanrun Technology were caught in a strange circle of increasing revenues, and the factors such as low profit, high equipment prices and high operational risks all contributed to the packaging enterprises.

The rise in the performance of LED packaging companies comes from the recovery of downstream demand, effectively improving the capacity utilization of packaging manufacturers. However, due to low industrial concentration, low industry threshold, concentrated enterprises in the low-end, fierce competition, and upstream and downstream extrusion, it is difficult for packaging companies and even industries to obtain profits. The gross profit continues to decline, which makes packaging companies have to expand production. average cost.

The difference in the expansion of LED chips and LED packages is another issue that the author is worried about. According to statistics, in 2014, the expansion of China's packaging giants increased by 50% year-on-year, while the expansion of Chinese chip manufacturers increased by only 20% year-on-year. In 2015, the packaging capacity surplus will exceed that of chips. It is foreseeable that the gross profit margin of the LED packaging industry will decline overall in 2015. Despite the increasing concentration of the industry, the packaging industry's 2015 is still not optimistic.

Shenzhen packaging manufacturers said: "There is still a certain amount of money to do the packaging. Basically, most of the profits and inputs of the packaging companies are on the equipment. It is very painful to do the packaging well. Now there are some The packaging factory does not do packaging, turn to finished products, come to me to patch. In the future, small and medium-sized enterprises only have to do special, take the road of differentiation, do a lot of single items, or do very fine, others do If you don't, you can survive. Don't follow the trend, others do what I do, blindly follow the wind and die absolutely hard."

Packaging companies have expanded

In the second half of 2014, China's LED packaging field ushered in a new round of expansion peak: Ruifeng Optoelectronics plans to invest 430 million to expand lighting LED and full-color LED production capacity. After the production, the EMC packaging capacity will be increased by 300KK/month, LED filament products will be 30K/month, medium and small power LED packaging products will be 700KK/month, full-color LED80KK/month; Hongli Optoelectronics will invest 1.009 billion to build LED industry base, which is mainly R & D, production and sales of LED packaging devices and LED lighting applications; Guoxing Optoelectronics plans to invest 210 million to small-pitch LED and outdoor surface-mount LED display device expansion projects, after the production will add small pitch LED production capacity of 3600 KK / year, Outdoor display LED production capacity of 3000KK / year; Jufei Optoelectronics plans to invest 534 million to backlight LED products and lighting LED product expansion project, is expected to increase the backlight LED package capacity of 1300KK / year, backlight LED strip 28KK / year, lighting LED Package capacity 2200KK / year ...

Most of the major packaging manufacturers focus on LED patches, and they are expanding production, so the problem of excess capacity of SMD chips is highlighted. Wang Junhua, director, director and deputy general manager of Guangdong Juke Lighting Co., Ltd. believes that the excess capacity of the patch will inevitably lead to the extrusion of production capacity, followed by the price decline. At present, the overall price of the patch market is down by 20%-30% every year. The original 4 lines can do 10 million output value, and now only 5 million, which is the status quo of the patch market. For large packaging companies, expansion has to be done, high cost, low profit, and can only rely on scale to find benefits. However, not only the SMD patch has this problem, but the COB also faces the same problem. The enterprise can only solve this problem through product line structure adjustment or expansion.

Market demand is different, traditional packaging and market

Two flowers are blossomed, one for each table. In the LED industry, the current SMD patch is still the mainstream of the market, COB light source has advantages in the LED commercial and other market segments, whether it is SMD patch or COB light source, there is no stage to replace who is currently, in addition to COB In addition to the light source, CSP (Chip Scale Package) technology has also appeared. It can be seen that the development of technology is a thousand miles, and maybe one day there will be more advanced technology to replace the existing technology.

Is there a crisis in traditional packaging? Does the expansion of the packaging factory expand the living space of the peers? And listen to the companies engaged in LED packaging to talk about.

SMD and COB packaging companies

Poly Lighting: Enhance product value with technology

SMD SMD Lamp Beads and COB Lamp Beads are the main products of Guangdong Juke Lighting Co., Ltd. (hereinafter referred to as Juke Lighting), but Juke Lighting Director, Secretary-General and Deputy General Manager Wang Junhua told the author that COB Lamps Lighting is better, it is the main business, mainly based on large and medium power lamp beads, accounting for 80% of the total sales.

For the problem of the price of the patch market being disordered and the quality is uneven, Wang Junhua said: "This is because the patch technology content is not too high, especially the traditional packaging is low in technology, and the process, management and equipment requirements for LED enterprises. It is relatively low." Although more and more finished products use COB light sources, he believes that the impact of COB light sources on the SMD patch market is actually not large, because SMD SMD beads and COB lamp beads are available to both the market and users. The difference, COB is mainly used as the main lighting, used in LED commercial lighting, SMD patch lamp beads are mostly used as auxiliary lighting, used in general lighting. In addition, some market segments of SMD patches are irreplaceable by COB, and some technologies and effects of COB are not available to SMD. The two are different and can be differentiated.

At present, traditional packaging products are mainly squeezed by capacity, cost and price due to low threshold. At present, there are still fewer finished products extending from the downstream to the package, but some LED chips have been extended to the downstream to improve the industrial chain. In this regard, Wang Junhua said that the packaging manufacturers are expanding production, the cost and price are very strong for small and medium-sized packaging plants, but for Juke Lighting, the feeling of being squeezed is very small, mainly the low-end stickers. The film companies are squeezed, not to mention the SMD patch lights are not their main business.

For the problem that the large packaging companies are expanding production and causing structural overcapacity, Wang Junhua believes that the dilution of the profit-making package has to rely on scale to find benefits. To this end, LED packaging companies can adapt to the dilemma by optimizing product structure, highlighting product advantages, and enhancing value through technology. Taking Juke Lighting as an example, the company recently launched a product with a display index of more than 90, and increased its product value with technology.

Liyang Optoelectronics: Optimistic about the patch market

Founded in 2008, Shenzhen Liyang Optoelectronics Co., Ltd. (hereinafter referred to as Liyang Optoelectronics Co., Ltd.) is a comprehensive LED lighting enterprise integrating traditional high-power LED light source packaging, optical design and whole lamp development. Traditional packaging products and COB light source products. They are all core package products. Lu Degang, vice president of LED packaging business unit of Liyang Optoelectronics, told the author that Liyang Optoelectronics has high-power, medium-power and low-power patch light sources. However, the current production capacity of traditional chips is very saturated, and COB light source products are in good condition. Market impact.

For the traditional package survival problem that the author asked, Lu Degang said that the patch market is more optimistic. The patch market is basically a large-scale market, which basically relies on production capacity to increase profits and is easily squeezed by large enterprises. It is unlikely that the patch will be replaced, and it will last for a long time. It is normal to have overcapacity, but there are still many special packaging requirements for the patch. There is no excess of standard products, and the fixed product may not be surplus. Although the price of the patch market is currently disordered, the quality is uneven, the price declines faster, the price is inevitably declining every year, and the rate of decline is relatively reasonable. The patch market has its very mature processing system, and there is no new package form for the time being. The degree of extrusion is not high.

More and more finished products use COB light sources. Lu Degang believes that the emergence of COB is definitely a big impact on the LED commercial lighting market. COB has its very good performance in the commercial lighting market, including clear images and no ghosting. However, for the traditional packaging method, it has not yet formed a threat. The traditional packaging method is still the mainstream of the market, and the main factors affected are the LED commercial lighting and other market segments. In this regard, Liyang Optoelectronics will focus on customers and enhance product differentiation management.

Traditional packaging company

Liang Erdi: Big factory swims in the sea, small factory swims in the river

Although the LED straw hat lamp market has been mostly occupied by patches, there are still a small number of packaging companies on the market that are still engaged in the production and sales of straw hats. Recently, the reporter interviewed Wang Baoxian, the person in charge of Liang Erdi. According to Wang Baoxian, Liang Erdi Optoelectronics is mainly engaged in high-power straw hat beads and SMD patches. During the January-March period of 2015, the sales volume of high-power straw hats decreased compared with the same period of last year. The sales of SMD patches increased, while the COB light source also did, but the amount was very small.

After transforming into SMD SMD LED beads, Wang Baoxian found that the current SMD patch market does have the problem of price disorder and uneven quality. Many small factories are fighting for price, and a few cents of a lamp can be bought in the market. get. At present, most of the SMD SMD lamp beads that are available on the market are 0.1 yuan/piece. He said that even if the competition is fierce, he will not "sell" the price of a penny. Liangdi Optoelectronics is not the same level as the customer group of this type of packaged small factory.

The upstream LED chip factory is extending downstream, and the LED packaging factory is expanding, which has caused some pressure on small and medium-sized packaging companies. In this regard, Wang Baoxian expressed his approval: “Package manufacturers reduce costs through scale, have greater voice over prices, and threaten small and medium-sized packaging companies in terms of cost and price.” However, he believes that the packaging manufacturers are expanding production. However, the direct impact on small and medium-sized packaging enterprises in the market is not large, because the customer groups are different, the packaged manufacturers are swimming in the sea, and the small and medium-sized packaging enterprises are only swimming in the river. This year, Wang Baoxian also plans to expand production, and SMD production capacity will increase by about 30%.

Zhide Lighting: The placement equipment is too expensive and the price is disordered.

A few days ago, when I visited a certain accessory market in Guzhen Town, Zhongshan, I found a store with LED straw hats, which is almost extinct in the ancient town. The company is Zhide Lighting. According to the person in charge of the Zhide lighting store, the company came from Zhejiang and came to the ancient town three years ago. After coming to the ancient town, he found that he was a few years late, because LED straw hats were not popular as early as a few years ago. There are very few manufacturers of LED straw hats in Guzhen.

The person in charge, because the town LED industry cluster development, the industry is highly concentrated, relatively complete industrial chain, LED industry development process is much faster than the river in Shanghai and Zhejiang, in addition to, the main town Lighting, and LED lighting market in straw hat lamp beads Has long been retired, can not be the main lighting, can only do auxiliary lighting, to do decoration. At present, Jiangsu, Zhejiang and Shanghai manufacturers, especially Yiwu, and some manufacturers mainly LED straw hats, toys and small appliances are inseparable from LED straw hats, which is irreplaceable for SMD patches.

However, in the ancient town market, the person in charge appeared to be quite negative. He predicted that LED straw hats would disappear in the ancient town market after 2-3 years. However, Zhide Lighting has not considered transforming the patch light source for the time being, or insisting on LED straw hat lamp beads because the equipment is too expensive and the price is disordered. The person in charge told the reporter that the 5730 patch was very popular last year, but the market price has been very bad this year, with more than 100 yuan (per thousand) and 20-30 yuan (per thousand).