Upstream chip capacity excess 500 billion LED lighting market changes

"Compared with the previous two years, it is not difficult to promote LED now, and it is also mature in technology." On June 11, Zhuang Shenan, chairman of Beijing Shenan Investment Group Co., Ltd., told reporters that in the field of lighting, LED lighting The substitution of traditional lighting is accelerating. In the past, the obstacles such as technology and cost that restrict the development of LED lighting are being continuously eliminated. In this process, China's LED lighting market will also accelerate growth.

According to a data from the Tuoba Industrial Research Institute, the LED lighting market in China was 23 billion yuan in 2011, and the LED lighting market penetration rate was 12.1%. It is estimated that in 2012 China's LED lighting market will reach 34 billion yuan, accounting for lighting. The market penetration rate is 15.5%. This is corroborated by the fact that the Guangzhou International Lighting Fair opened on June 9 at Guangzhou Pazhou International Convention and Exhibition Center. According to the introduction of Fang Guangya Frankfurt, more than 2,600 exhibitors participated in the lighting exhibition, covering an area of ​​over 220,000 square meters. In the face of the huge Chinese market, foreign giants such as OSRAM and Schneider have taken over.

However, Zhuangshenan believes that due to excess capacity in the upstream chip, prices have fallen sharply. In the past, foreign chip manufacturers who had the impression of occupying the high-end segment of the industry chain have not had a good day. And Shen An, a Chinese company directly connected to the LED application market, has quite a lot to do. The right to speak.

500 billion market lure

“The LED lighting industry started in South Korea and China Taiwan, but the local market in these areas is very small.” Zhuangshenan believes that applications and markets are an important part of the LED lighting industry chain, and the Chinese market will be the top priority in the world in the future.

Zhuang Shen'an's argument has been recognized by the industry. At the Asian LED Summit 2012 held in conjunction with the Guangzhou Lighting Fair, Lin Zhixun, head of the Energy Research Group of the Taiwan Industrial Technology Research Center, said that in recent years, Taiwan’s LED industry’s share in the global market has been sluggish. One is the narrow constraints of the local market.

In mainland China, with the constant emphasis on energy conservation and consumption reduction by various levels of government, LED lighting has received increasing attention because of its advantages in energy saving and environmental protection. According to the "12th Five-Year Plan" for the development of semiconductor lighting technology, by 2015, China's LED lighting industry will reach 500 billion yuan, LED lighting products will account for 30% of general lighting, and 20-30 leading enterprises will be fostered. 20 state-level industrial bases and 50 pilot demonstration cities of “Ten Cities and Ten Thousand Peoples” promoted China’s semiconductor lighting industry to enter the top three in the world.

With the promotion of national policies, LED lighting has taken the lead in the outdoor, landscape quantification, and construction markets. According to Zhuang Shen'an, Shen'an Group's high-brightness LED mast light and other products have been used in key projects such as the special plane building of Capital International Airport, T1, T2 terminal buildings, Tianjin Binhai Airport, and highways.

At the same time, according to the phase-out incandescent light map released by the relevant departments last year, from October 1 this year, China will ban the sale and import of incandescent lamps for general lighting of 100 watts and above; by October 1, 2016, sales will be banned. And import incandescent lamps with 15 W or more for general lighting. This means that incandescent lamps will gradually withdraw from the historical stage from this year, and the curtain of LED civil lighting market is starting to open.

The huge market has attracted Chinese and foreign industrial giants to invest. Taking the Shenan Group as an example, as of now, it has invested in the construction of six production bases in its headquarters in Beijing, Shifang in Sichuan, Dezhou in Shandong, Tianmen in Hubei, Jinxian in Jiangxi and Jiaozuo in Henan. According to reports, the group will also build six new production bases in the northwest, northeast, and east China. Zhuang Shenan also stated that in the market expansion, Shenan Group will further expand the decoration materials city, lighting city and other public markets on the basis of consolidating the existing engineering market.

OSRAM, one of the two major light source manufacturers in the world, has also increased its investment in China. In May of this year, OSRAM signed a contract with the Wuxi New District Administrative Committee to determine its new LED assembly plant. This back-end plant will be completed and put into production in 2013. Its main business is the LED chip package. Wu Shengbo, president of OSRAM Asia Pacific, stated that China is the world's largest lighting market. One of OSRAM's strategies in China is localization. “China already has a very good manufacturing base and industrial chain. OSRAM hopes to find partners here and expand 'unification'. "Frontiers" become a part of the complete industrial chain."

In view of the vigorous development of the Chinese lighting market, Schneider Electric continues its global energy efficiency management expert's position and provides a full range of panel switches and light control solutions. On June 10th, Xu Jiancun, director of strategy and marketing of Schneider Intelligent Living Space Division, told reporters that as the closest consumer of Schneider Electric to consumers, Smart Living Space Division is outside the existing mature markets of the first and second tiers. It also expands the breadth and depth of channel coverage in third- and fourth-tier cities through complementary strategic cooperation. In this lighting exhibition, Schneider released its latest generation of EZinstall3 wireless intelligent lighting control system.

Industrial chain changes

From the perspective of the industry chain, LED lighting mainly includes three links: the upstream chip, midstream packaging, and downstream applications. It is generally believed that the LED chip upstream of the industrial chain is a capital and technology-intensive industry with high value-added products. The investment of one production line is up to several billion and over ten billion yuan. However, Zhuang Shenan told reporters that from the current market situation, it is precisely the upstream chip sector excess capacity, LED chip prices fell sharply.

"The chip makers have been fighting a price war." Zhuang Shenan revealed to reporters that several years ago the price of LED chips was as high as RMB 20/watt, which has now been drastically reduced to 3-5 yuan/watt. "This year's prices have fallen compared with last year. About 50%." At the same time, the proportion of chip costs in the total cost of LED lighting products is also significantly reduced. Zhuang Shen'an said that in 2008 and 2009, this proportion was about 50%, and now it has dropped to about 1/5. Lin Zhixun, head of the energy research group at the Taiwan Industrial Technology Research Institute, also said that the LED component industry is now large. Commercialization means that the product standards of various manufacturers are more and more unified, functions are getting better, and prices are getting cheaper and cheaper.

LED chip overcapacity and price war, on the one hand, provide the cost driving force for the popularity of LED lighting, and on the other hand, it also provides opportunities for Chinese LED companies such as Shenan Group.

In order to further illustrate this logic, Zhuang Shen'an cites a mobile phone in his hand. “The chip is Samsung. The screen is produced by Japanese and Korean companies. Other components are provided by Japanese, Korean, and Taiwanese companies. Finally, Foxconn assembles, but Apple In which occupy the largest proportion of profits."

The United States "New York Times" once dissected Apple's iPhone4 supply chain, an iPhone4 that sells for $600. The cost of the material needed is about $187.51. Among them, about 80 US dollars of the material is South Korea's products, the United States, Germany and Japan, some companies provide other materials, Foxconn on each iPhone4 only get $ 6.54 in compensation. Apple's profit on each iPhone 4 is as high as 360 US dollars, accounting for 60% of profits.

Zhuang Shenan also cited the example of Lenovo in the PC industry. Lenovo itself does not produce chips, motherboards, and memory, but it is the top PC company in the world. Its purchasing decision has a major impact on the survival of upstream manufacturers. Zhuang Shenan said that the goal of the Shen An Group is to become the LED lighting industry association.

"Before 2010, everyone took the technical route, and now it is market promotion ability." Zhuangshenan told reporters that after the LED technology clearance, Shen'an's advantages in policy qualification and market promotion will be given greater play.

According to Zhuang Shen'an, Shen'an's high-brightness LED products have features such as cold light source, high power, high brightness, and low energy consumption. The outdoor lighting demonstration project was included in the national top ten key energy conservation projects by the National Development and Reform Commission in 2008. In April 2009, Shen'an High-brightness LED was listed in the first batch of the Beijing Municipal Government Procurement Catalog and became the Beijing Municipal Contract Energy Management Pilot Unit in the same year. In addition, Shenan Group also became China's top ten low-carbon demonstration units in 2010.

"The ability to dock the market will be the key to the survival and competition of the next LED company." Zhuang Shenan said.

Three to five years of shuffling

In the first half of this year, China's macroeconomic growth slowed down, but Zhuang Shenan said that the LED lighting industry has not been affected much. On the contrary, due to the successive launch of energy-saving policies at all levels of government, the market has accelerated development.

However, he also stressed that the overall market situation does not mean that every company has a chance. On the contrary, with the intensification of the price war, the next three to five years will be a market reshuffle.

According to news from the "Asian LED Summit" and "The Latest Technology and Results Forum of the Lighting Industry" held at the same time during the Guangzhou Lighting Fair, since last year, domestic orders for small and medium-sized LED companies have fallen or even shut down. Zhuang Shenan also told reporters that according to his understanding, under the fierce competition, some small and medium-sized LED companies in Guangdong, Zhejiang, and Shandong have closed.

Like the early home appliances and other industries, LED lighting industry will also usher in the development stage of the survival of the fittest and scale in the next few years. Zhuang Shen'an stated that at this stage, Shen's task is to further scale up through the advantages of technology, qualification and market.

In response to the development of China's LED lighting industry, relevant parties proposed in the “12th Five-Year Plan” for the development of semiconductor lighting technology that Chinese companies should strengthen the application of technology research, with the goal of capturing the commanding heights of innovation and application, and technological innovation, system integration, and Focusing on solutions, develop high-quality, multi-functional and innovative semiconductor lighting products and systems to achieve large-scale production; develop semiconductor lighting products with cost-effective advantages to replace inefficient lighting products; carry out office, commercial, industrial, agricultural, medical Thematic innovation applications in areas such as smart information networks.

“The LED application of the terminal market is the breakthrough point and advantage of Chinese companies.” Zhuangshenan believes that some LED companies blindly on the chip project is not desirable, “the use of lamp money to subsidize the chip, it is difficult to develop.”

The bending and forming of the metal plate is carried out on the bending machine. Place the workpiece to be formed on the bending machine, lift the brake shoe with the lifting lever, slide the workpiece to the proper position, and then lower the brake shoe to the workpiece to be formed, and realize the bending of the metal by applying force to the bending lever of the bending machine.

Sheet Metal Forming Process

Sheet Metal,Forming Mount Unit,Laser Cutting Cover,Sheet Metal Forming Process

Dongguan Formal Precision Metal Parts Co,. Ltd , https://www.formalmetal.com

Posted on