LED is a semiconductor electronic component that converts electrical energy into light energy. This electronic component appeared as early as 1962. In the early days, it could only emit low-luminosity red light. Later, other monochromatic light versions were developed. Today, the light it can emit covers visible light, infrared rays and ultraviolet rays, and the luminosity has also increased to a considerable luminosity. They were originally used as indicator lights, display panels, etc. With the continuous advancement of technology, light-emitting diodes have been widely used in monitors, TV lighting decoration and lighting.
From 2010 to 2016, the penetration rate of LED in various markets will increase significantly. Among them, the household market will increase from 6% to 49%, outdoor lighting will increase from 5% to 40%, and commercial lighting will show the largest development, increasing from 2% to 51%. With the reduction of LED costs, falling prices, and the policy of phasing out incandescent lamps, China's LED market has developed rapidly, and the penetration rate of LED lighting has gradually increased. It reached 32% in 2015 and has become a mainstream light source. The total LED output value increased from 154 billion yuan in 2011 to 396.7 billion yuan in 2015, with a CAGR of 26.69%.
The 2016-2021 China LED industry development analysis and investment potential research report shows that China’s LED industry is developing rapidly and competition is becoming increasingly fierce. Benefiting from the increase in the proportion of domestic chips and the impetus of mature technologies such as flip-chip acquisition of high-efficiency and high-power LED chips, the output value of the upstream LED chip industry increased year by year from 2011 to 2015, with a CAGR of 21.32%. In 2015, the output value of China's LED chip industry reached 13 billion yuan, a year-on-year increase of 8.3%, and the growth rate slowed down. The midstream LED packaging industry is also developing rapidly. The CAGR from 2011 to 2015 was 19.01%. The rapid development of China's local packaging companies has also intensified global competition, and China's LED packaging industry has entered a period of competitive elimination.
LED intelligent equipment replaces labor, improves production efficiency and reduces production costs. As a typical labor-intensive industry, LED uses intelligent equipment to replace labor in its upstream, midstream, and downstream industries, which is expected to improve LED production efficiency and save production costs. Therefore, LED intelligent equipment has a huge market space. In the LED upstream industry, Zhongwei Optoelectronics is involved in LED chip testing machines. LED chip spotting machine is used in LED spot testing and sorting process. This equipment has high requirements for test accuracy and stability. Currently, there are several major manufacturers such as Taiwan Whitt, MPI and Hong Kong ASM. Except for China Optoelectronics, no other domestic companies have been involved. Zhongwei Optoelectronics has the advantage of localized services. The spot testing machines have been mass-produced and have received quality certification from major international manufacturers. In the midstream industry, LED light splitting and taping equipment is an indispensable tool in the LED packaging process. It is used to detect, classify and tape the light, color, electricity and appearance of LED products one by one to ensure the consistency of the three. Zhongwei Optoelectronics has profound technological accumulation in the field of packaging automation, which will promote the active transformation of Chinese packaging factories from labor-intensive to capital-intensive and create smart factories that conform to the trend of Industry 4.0.
The core technologies and high-end product quality of the LED industry are generally in the hands of foreign-funded enterprises. However, with the rapid development of my country's LED enterprises, the pattern of my country's core technologies and core patents being in the hands of large foreign manufacturers has quietly changed. The entire upstream landscape has basically taken shape. Will it trigger new major changes in competition in the future? The market background between China and foreign countries is different, and the development situation of the chip and packaging industry is different from that of Japan, South Korea, Europe and the United States. Whether it is research and development, technical foundation, or industry development stage, there is a complete opportunity to take the route of packaging and chip integration in the future.
ANNA