Leading LED chain price mark LED into a new era

2017 started the first day, LED chip leading three security photoelectric (600703) to the lower reaches of the notice of price increases, some of its products prices 8%.
As the LED chip leading enterprises three security photoelectric prices, strong verification of the LED industry, the overall pattern of supply and demand has undergone a fundamental change, not only because of backward production capacity out of the supply side contraction, is LED downstream demand side steady growth, steady improvement in profitability, reiterated strongly Concerned about the proposed LED industry has a great opportunity.
We have been tracking the LED industry chain, LED chip leading three security, Australia and many other LED chip companies from the second half of 16 years full production. The Taiwan chip leading company Epistar said that due to four yuan LED, LED backlighting, security control monitoring, smart phone flash, automotive products and other downstream demand boosted from the end of the second quarter of last year already full production. So the three security prices in the reasonable, and verify the overall pattern of supply and demand LED industry is continuing to improve.
From 16 years began LED chip and package successive price increases, marking the LED industry chain reshuffle the end of the industry from the era of excessive competition into the era of stable income.
We see the LED upstream chip end after 15 years of shuffling, backward chip production capacity to phase out Taiwan's leading crystal power, CREE has shut down 25% capacity, Samsung, LG also shut down part of the production capacity, and 16 years of domestic government subsidies began significantly Reduction, the domestic new supply expansion has dropped significantly. At the same time lower domestic ban further increase 60% LED lighting needs, small spacing led compound annual growth of 28%. So we can observe from 16 years the chip part of the product prices have been 5-10%; part of the package price increases of more than 15%, this part of the three LED chip products rose 8%, once again verify the overall structure of the LED industry supply and demand is already improve.
LED industry chain concentration to further improve the industrial chain pattern continued to solidify, the industry leader in-depth benefit.
With the industry concentration to further enhance the future of the domestic LED chip market will be only 5-10 large-scale enterprises, the industry's top five chip companies accounted for 65% of revenue; packaging enterprises even more so, the number of packaging enterprises From 14 years, more than 1,500 down to 16 years, only more than 1,000, the future will continue to increase the concentration. LED industry chain concentration continues to increase, the industrial chain pattern continues to solidify, the industry leading bargaining power will steadily increase.