The hottest LED chip price reduction San'an optoel

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LED chip price reduction San'an optoelectronics/Huacan optoelectronics/Australia Shunchang three strong confrontation

mainland San'an optoelectronics and Huacan optoelectronics have successively reduced the price of some LED chips recently, announcing the official end of the 1.5-year LED chip price increase cycle. Trendforceled research believes that the situation of LED chip supply exceeding demand has reversed, and 2018 will enter the stage of supply and demand balance

after this round of production expansion, the three major leijing plants in the mainland will move from the pattern of two large and one small to the state of three strong pillars. The combined market share of San'an, Huacan and Aoyang Shunchang is stable at more than half, and mainland funded plants that are unable to update equipment may be marginalized

based on the production capacity of 2-inch Lei chips, San'an, Huacan and Aoyang Shunchang have a net increase of 1.3 million, 1 million and 830000 chips respectively, ranking among the top three LED chip manufacturers in Chinese Mainland, with market share of 32%, 20% and 12% respectively, a significant growth from 27%, 13% and 3% in 2016

the share of San'an City exceeded 30% for the first time, making the Lei Jing plant in the mainland evolve from two large and one small to the Three Kingdoms

however, with the gradual opening of new capacity at the end of this year, the supply and demand of LED chips have gradually returned to balance, allowing manufacturers such as San'an and Huacan to choose to make strategic price adjustments for lighting and display chips in the near future

before that, the chip price has remained high for a year and a half. After this round of adjustment, the LED chip price is expected to enter a stable or slightly adjusted platform period

Wang Fei, chief analyst of ledinside, said that the sharp fall in the price of LED chips in Chinese Mainland in 2015 accelerated the transfer of global LED chip orders to China, resulting in a sharp increase in orders and capital expenditure by Chinese manufacturers in 2016. Compared with the trend that manufacturers in other regions of the world gradually reduce investment and even withdraw from the LED industry, Chinese manufacturers are still the most active in the LED industry. In 2017, the main expansion of MOCVD equipment came from San'an, Huacan and Aoyang Shunchang

Wang Fei said that after this large-scale expansion of production, the production capacity of the three leading manufacturers will gradually cross the threshold of 1million pieces per month. Let's take a look at our technicians below. Before using the metallographic polishing machine, we need to solve the errors on the instrument panel. The production capacity of D chips has been significantly increased, which is expected to form a better supply structure, so as to avoid users being willing to experiment once they start the machine, and avoid excessive price competition. In addition, the production efficiency of the new capacity is higher than that of the previous generation of machines (k465i generation), which is not conducive to making an accurate evaluation of the fatigue life of the experimental belt, and can reduce the production cost by about 30%, which will strengthen the cost competitiveness of leading manufacturers such as San'an and Huacan, while chip manufacturers who are unable to update equipment will accelerate their marginalization

source: Business Times

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