Taiwan factory LED chip encounters cold mainland or opens a new wave of mergers and acquisitions

Taiwan's LED manufacturers' revenues in October were all released, and seasonal adjustments were made. LED sapphire manufacturer Ruijie continued its downward trend in September, but still maintained a large growth rate of 93.93%. LED chip manufacturers showed a year-on-year decline in the same period of the previous year. The crystal power, the new century, and the round of October fell by 3.3%, 28.5% and 26.6% respectively. LED packaging manufacturers Yiguang and Dongbei maintained a year-on-year growth of 25.37% and 60.37%, while the chain fell slightly by 7.86 and 4.52%. Overall, the LED industry sapphire and packaging still maintain rapid growth, while the chip industry is still in phase adjustment, LED still maintains the industry boom.

Taiwan manufacturers in October LED chip cold LED chip manufacturers continued the downward trend in September in October, LED chip makers Jingdian, Ronda, and Yuanyuan fell by 15.48%, 16.66% and 36.22% respectively in October, with no decline. The trend of easing is slightly lower than expected, indicating that Taiwanese chip makers are still in a state of adjustment since the third quarter. In October, mainly due to seasonal factors, Ronda said that the backlight and lighting applications in October all entered the off-season, and the backlight part entered the traditional off-season. In addition, the demand of Korean customers was tight, so it showed a downward trend.

The lighting segment, due to the reduction in shipments of European customers at the end of the year, has entered the fourth quarter of the traditional low season. LED sapphire performance continued to rise steadily, LED sapphire manufacturers Jingmei, Xinjing drill increased by 10.18% and 7.06% respectively in October. Ruijie fell 10.95% in October, compared with a 12.8% decline in September, showing a trend of falling, and Ruijie's October growth of 93.93%, showing that the LED sapphire industry is still in the industry. LED packaging manufacturers were dragged down by the off-season. Yiguang and Dongbei decreased by 7.86% and 4.52% respectively in October, but they increased by 25.37% and 60.37% respectively.

China LED fierce competition open a new round of mergers and acquisitions wave <br> <br> LED LED industry according to the law of Hydes (HaitzLaw), production technology continues to progress, continue to improve productivity and product yield, chip prices will no doubt go decline. The LED competition in the mainland is intensifying, and the brand's market occupation has not only focused on price competition but on both quality and price. Enterprises with backward technology and poor management efficiency will eventually be eliminated. At the same time, the cash flow of enterprises is very important. If the cash flow does not go down, it will face great operational risks. Under this trend, the mainland LED market will show the same overall scale, and the company will continue to expand. At the same time, the number of capital inflows into new chip companies will not increase much, because the previous investment is too large, and the market has been overdrawn. Demand, the upstream chip sector is still digesting previous investments.

Now we see that some big companies are starting to take action, and a new round of LED mergers and acquisitions has begun. Enterprises with capital platform operations are generally more tenacious. For example, even if the upstream enterprises in the mainland market are small in scale, they will not disappear as long as they have a platform for listed companies. The upstream chip companies that have disappeared in recent years are basically enterprises that do not have a capital platform to operate. Two years later, in 2016, when the LED reached 180lm/W to 200lm/W industrialization, the light extraction efficiency has reached 60%. Without increasing the cost, the cost performance of LED lamps will surpass all traditional lighting fixtures. At this time, the LED field will enter the stage of brand competition, and LED chip companies with strong capital and leading technology will dominate the market.

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