LED Industry Competitive Small Factory Or Will Be Phased Out

 too many enterprises to participate in the competition, making the LED stadium lights industry market profits are being diluted, mergers and acquisitions frequently occur. When the LED performance gradually dim lighting, the capital in the LED industry began to shift to higher value-added upstream. Blue Ocean as an industry, the industry estimates the domestic market for deep UV LED stadium lighting (on sterilization, medical, biological and chemical detection, high-density information storage and secure communications and other fields have important applications) needs up to 15 billion yuan. backpfrontp October 21, Harmony Technology Chairman Liang Xudong told reporters that the company will complete the Qingdao-Health Electric Co., Ltd. (hereinafter referred to as Jensen Electric) holding. Accordance with the previous announcement, Harmony Technology intends to acquire 85.61% of the electrical Jason equity total acquisition price of 109 million yuan. Incentives for the acquisition, from Jason electrical domestic DUV LED nearly 100 percent of the monopoly. backpfrontp high power LED flood light industry competition is fierce price competition is making backpfrontp despite the industry to profit, but as a major strategic emerging industries, LED temptation consequent capital and mergers and acquisitions, but is becoming a trend. backpfrontp October 16, Harmony of Science and Technology said in a statement, the proposed public offering of shares and cash of the way, the acquisition of Jason Electric 85.61% stake. backpfrontp Statistics show that was established in late 2010 of harmony science and technology, is the industry's major supplier of LED upstream products, with an annual turnover of 400 million yuan. However, the acquisition of the object also not Dengxianzhibei electrical Jason, before the completion of Harmony Technology Holdings, a member of the World Bank [microblogging] Group, IFC (International Finance Corporation) is the largest shareholder Jason Electric. backpfrontp the chairman and general manager Jason Zhang Guohua Electric opinion, a company should develop, the most important is the capital and the market, money will work, and this is a key point Jensen and harmony cooperation. backpfrontp 梁旭东 then told reporters that the move will expand and improve the layout of the company's business, to diversify the business model, to further develop business synergies, enhance the company's profitability and ability to resist risks. backpfrontp In fact, the industry view, the experience of 10 years of rapid development, China's 1000W LED flood light industry has become very fierce competition, while price competition caused by the expansion of production capacity, it is gradually diluted industry profits. backpfrontp National Bureau of Statistics data show that the first half of 2015, the accumulated losses of the national LED lighting industry enterprises 579, the loss was 22.18%, higher than the national loss of face light industry 8.6 percent. According to market research agency LEDinside statistics, LED average price fell 30% ¯40%, industry output growth of only 2 percent, reaching $ 14.52 billion, next year will continue to integrate acquisitions tide. According to the relevant industry bodies backpfrontp data from the beginning of the year so far, LED tunnel lights industry, there were nearly 30 cases from the merger integration, the overall amount of mergers and acquisitions has more than 28 billion yuan, and covers the LED industry chain. backpfrontp integrate acquisitions tide will continue backpfrontp 2015 February relevant industry bodies predict that China's chip industry M \u0026 A trend is clearly eliminated the next three years before the LED chip industry enterprises accounted for 5 to more than 70%. backpfrontp Today, production problems caused by the industry to adjust. According to Taiwan's LED manufacturers the news that the proportion of global LED chip oversupply in 2015 will reach 22%, mainly due to the continent LED arena lights epitaxial wafers and chip manufacturers continue to expand production capacity. backpfrontp five companies as the industry, Harmony Technology is no stranger to mergers and acquisitions. Between the two years before, in addition to the acquisition of Jiangxi Harmony Technology Core Energy Technology, almost never find together merger cases between the mainland LED chip companies. backpfrontp is worth noting that, for the scale mergers and acquisitions that may arise, Liang Xudong not recognized. He believes that the scale does not necessarily produce benefits. Personally, I respected added value, rather than through price cuts. Hong Kong University of Science Professor Li Shiwei example backpfrontp think we can do the final pricing of LED gym lights products, such as 10 yuan, but the raw materials and equipment short board, including nine yuan is the United States, Germany and Japan make a left, China can only earn to 1 yuan. backpfrontp and let Liang Xudong and his team the most valued is that Jason has a unique domestic electrical GaN-MOVCD (DUV growth equipment) manufacturing technology and DUV epitaxial silicon production technology. backpfrontp reporter noted that market compared with the blue and green RGB LED flood light Red Sea, deep UV LED market is still a blue ocean. There are research reports that the total domestic market demand for deep UV LED chip up to 15 billion yuan. Geng Bo backpfrontp opinion, in 2013, the market size of the global ultraviolet chip in about $ 800 million, such as by amplification effect chain to estimates, the market size to expand tenfold applications market ultraviolet chip in about $ 8 billion the above. backpfrontp Liang Xudong expected in the next five years, deep UV LED market will usher in the explosive growth. However, as a business manager, Liang more concerned about it is to enhance value-added products. backpfrontp Geng Bo believes that the LED street light market, the market and the customers also need to nurture. But from a business perspective, the core technology development and extension of the entire value-added products will be enlarged. backpfrontp However, before value-added upgrading, mergers and consolidation within the industry seems to have been inevitable. Survey data show that in 2015 the LED epitaxial chips will reach 14.8 billion yuan of output value, slower growth. backpfrontp in a number of industry opinion, in the case of profit, LED entire industry must borrow capital strength, accelerate the integration of the industry, to accelerate the survival of the fittest among enterprises, the scale and strength of superior LED enterprise groups. backpfrontp CSC believes that due to the expansion requires a large capital investment, the world's many small plant capacity utilization is low, profitability is poor, do not have the capacity expansion, will gradually be eliminated, the market will further focus of leading enterprises. backp