Demand for lighting is strong, and LED chip companies’ performance is booming

In the first half of 2014, the domestic LED lighting market quickly opened up in line with international trends, and the industry prosperity continued to increase. Driven by the strong demand in the downstream lighting market, the LED upstream chip industry has achieved rapid growth. In the first half of the year, LED chip companies performed well overall, and the new trends displayed on the chip side are even more remarkable.

Full production capacity and good performance

The stock market is like a mirror, slight fluctuations will reflect the development status of enterprises and industries. The LED chip market is no exception. In the first half of the year, the stock markets of listed chip companies have been booming.

It can be seen from the 2014 first quarter results of listed LED chip companies that, except for Dehao Runda, Sanan Optoelectronics, Huacan Optoelectronics, Qianzhao Optoelectronics and Nationstar Optoelectronics are all profitable. Dehao Runda believes that the reason for the loss is on the one hand the decline in product gross profit margin and on the other hand the substantial increase in financial expenses.

Among them, Sanan Optoelectronics, which has the largest profit increase, stated in its announcement that strong market demand and the company's main production equipment MOCVD at full production are the reasons for the performance growth. Similarly, Nationstar Optoelectronics also attributed the performance growth to the increase in sales revenue, indicating that the increase in market demand is the main reason.

Bian Difei, vice president of Huacan Optoelectronics, said that the current demand in the downstream market is relatively strong, and the 37 MOCVD equipment in the Wuhan base are basically maintained at full capacity.

Whether the LED chip market is good or not depends not only on the chip companies, but also on the production conditions of their customers. The relevant person in charge of the sales department of Nationstar Optoelectronics, a customer of Sanan Optoelectronics, said, "Sanan Optoelectronics is its chip supplier. Since the LED lighting market was relatively hot in the first half of the year, Nationstar Optoelectronics' startup rate was 100%. In addition, the company itself has expanded production, and its shipments have doubled compared to last year."

At the same time, although the revenue performance of LED chip companies in Taiwan, represented by Epistar, Canyuan, New Century, Dingyuan, Taigu, etc., varied in 2013, as the trend-setting Epistar Optoelectronics turned from losses to profits, the overall industry recovery trend is obvious.

"Epistar's performance increased significantly in the first quarter of this year. First-quarter revenue reached 6.24 billion yuan (NT$), which also hit a record high. In the second quarter, production capacity is fully loaded, and new products have been shipped, which optimizes the product mix. The performance in the second quarter will be better than the first quarter." said Lin Yida, associate manager of Epistar's marketing center.

It is understood that major international manufacturers such as Philips Lumileds and Osram have also achieved relatively high growth in their chip performance. Zhou Xuejun, Asia marketing director of Philips Lumileds Lighting Company, said, "Because the chip business involves many subdivisions, four new agents have been added since last year, using their own channels to expand market segments. Compared with last year, there has been double-digit growth, and the company's overall orders have achieved steady growth, and more orders will be seen in the second half of the year."

Increased production and expansion, prices fell

In the first half of the year, LED chip manufacturers performed well. The chip market was extremely hot, and even full production capacity seemed unable to meet the needs of the downstream market. Furthermore, some chip manufacturers are eager to expand production capacity to balance supply and demand, and at the same time hope to further seize market share.

Among them, Sanan Optoelectronics increased its investment by 10 billion yuan to become the global leader in production capacity, investing in the construction of LED blue and green light epitaxy and chip R&D and manufacturing industrialization projects with a total scale of 200 MOCVD units (based on 2-inch 54-piece conversion). Huacan Optoelectronics plans to invest 1.18 billion yuan in the construction of the third phase of the LED project to expand its epitaxial wafer production capacity; Aoyang Shunchang plans to invest 1 billion yuan in the construction of the LED epitaxial wafer and chip industrialization project (phase 2); Xinhaiyi’s monthly LED chip production capacity is expected to reach 90,000 pieces by the end of the year; Yingrui Optoelectronics is making efforts For high-end LED chips, the number of MOCVD machines will increase to more than 25; Dehao Runda is building bases in Bengbu and Yangzhou, and the new LED chip production capacity will be three times the current; Qianliu Optoelectronics has entered the blue and green light field to compete for the LED epitaxial chip market for lighting.

Yang Shiyi, the person in charge of Taiwan New Century Optoelectronics Exhibition, said that although the company has not purchased new MOCVD equipment, the company has worked hard to improve machine efficiency and product yield, and has also carried out substantial expansion of production.

PREVIOUS：LED is not as profitable as traditional lighting products. NVC earned 250 million last year NEXT：10 stocks spent more than 10 billion on sapphire this year, and the confidence for the big bet comes from the LED explosion

Demand for lighting is strong, and LED chip companies’ performance is booming

RELATED NEWS

CATEGORIES

LATEST NEWS

CONTACT US