Since 2016, the LED industry has continued to pick up, and the trend of overseas order transfer has been significant. The shrinkage of the supply end of the LED chip industry has triggered the current round of industry boom, and the production capacity has undergone structural optimization. After the low-end production capacity is eliminated, the gap between supply and demand still exists, and the newly added capacity of domestic manufacturers will be transferred to the domestic market for digestion.
As LED downstream applications continue to expand and market penetration rates increase, emerging markets such as high value-added lighting, small-pitch displays, and automotive LEDs will bring incremental space to the industry.
In addition, many small chip companies with poor management have already withdrawn from the market due to lack of competitiveness. At the same time, due to the past two years, chip companies have become more conservative in market forecasts, and the pace of expansion has slowed down, resulting in insufficient capacity preparation last year.
In particular, the price increase caused by the tight production capacity of several rounds of chips since 2016 has further accelerated the pace of production of LED epitaxial chip companies.
The characteristics of a new round of chip expansion:
1. Compared with the previous round of expansion, based on the expected demand of the terminal application market, this round of expansion is based on the substantial rapid growth of the downstream application market. Especially since the supply and demand tension between the upstream and the downstream since last year, there has been a price correction.
2. Compared with the previous round of corporate “觊觎†policy dividends, after several years of market elimination, the surviving enterprises already have their own hematopoietic capacity. At the same time, in the global chip competition, Chinese companies have already made a strong breakout, and some enterprises have occupied the world's leading position in terms of production capacity and revenue.
3. The background of this round of expansion is also based on the chip industry has initially divided the upstream and downstream supply camps, and some enterprises have also locked their own downstream estuaries to establish a stable supply relationship with downstream packaging and application companies. This will bring sufficient production and sales guarantee for the subsequent production capacity release.
Sanan Optoelectronics
On January 9, 2016, Sanan Optoelectronics announced that the net proceeds raised were 3.454 billion yuan. Among them, 1.91 billion yuan was used for the construction of Xiamen Sanan Optoelectronics Industrialization (Phase II) project. Xiamen Optoelectronics Industrialization (Phase II) has a total investment of 3,641.10 million yuan and a construction period of 24 months. It is mainly engaged in the production of LED epitaxial wafers and chips.
The project plans to build two new 615,500 pieces/piece epitaxial wafer production lines (based on 4-inch wafers), and build two new matching chip production lines. After the completion of the project, it will form an annual production capacity of 122.30 million pieces of ultra-high brightness LED blue and green light epitaxial wafers (based on 4 inch equivalent products) and a production capacity of 30.605 billion chips.
At present, Sanan Optoelectronics' domestic market share is about 30%. It is expected that the company will expand production by 33% in 2017 and reach 2 million pieces/month by the end of the year. It is expected that the scale of revenue will surpass that of Jingdian and become the international leader of LED chips.
Huacan Optoelectronics
In 2016, Huacan Optoelectronics, which invested 600 million yuan in expansion, is expected to launch its production in Yiwu in May 2017. After it is put into production, it will reach an annual output of 3 million LED chips.
Small-pitch LEDs are driven by the demand for downstream small-pitch LED displays. The market will have a CAGR of 60% in the next two years. The potential market size of the products may reach 17.2 billion yuan. The company will benefit from the expansion of small-pitch LED chips and is expected to be expanded by the end of 2017. The production scale of LED chips of 1.4 million pieces per month has reached the second largest in the country and the world's leading scale.
Aoyang Shunchang
The Australian Ocean Shunchang LED chip is a white light lighting chip with an existing capacity of 200,000 pieces/month. In 2016, it produced 2.05 million pieces and sold 2.45 million pieces. The new capacity of 60 pieces/month is expected to start climbing in the second quarter, and it will be fully produced at the end of the second quarter. In 2017, the full production capacity can reach 7.5-8 million pieces.
In 2016, the company's LED production line was basically fully operational, and the performance, quality and yield of the products were in good condition. Since the second half of 2016, the company has accelerated the pace of expansion of LED epitaxial wafers and chip industrialization projects, and gradually released production capacity in the first quarter of 2017.
In December 2016, Aoyang Shunchang also cooperated with the domestic LED packaging leading company 'Mulinsen' to promote the second phase expansion of LED. Mu Linsen announced on December 21, 2016 that the company plans to invest 500 million yuan to increase capital of Huai'an Aoyang Shunchang Optoelectronic Technology Co., Ltd. After the completion of this investment, the company extended its upstream of the LED industry chain through strategic investment to further improve the company's entire industrial chain layout plan.
Dehao Runda
On May 15, Dehao Runda disclosed that it has received approval from the CSRC to approve the company's non-public offering of no more than 368 million new shares. The total amount of funds to be raised will not exceed RMB 2 billion, and will be directed to LED flip chip and LED chip scale packaging. project.
Among them, the LED flip chip project has a total investment of 2.5 billion yuan, and plans to use 1.5 billion yuan to raise funds. It is expected to form an annual production capacity of 5 billion flip-chips.
Dry photo photoelectric
On May 5th, Xiamen Ganzhao Optoelectronics passed the “Proposal on the Expansion of the Company's Main Businessâ€. In 2017, red and yellow LED epitaxial wafers and chips will continue to benefit from the continued growth of small-pitch display.
The quaternary chip is used in the sub-segment (automobile, display, infrared, etc.), and the MOCVD of red and yellow light is much less than that of blue-green light. There are only about 200 units in the world, mainly concentrated in China and Taiwan. After 2010, the red and yellow MOCVD machine has almost no expansion.
According to the announcement, the total investment of this expansion plan is 737 million yuan, which is used to implement the expansion of red and yellow LED chips and triple-junction gallium arsenide solar cells. The main input equipment is 20 quaternary MOCVD epitaxial furnaces and corresponding chip production equipment. .
The dark horses that have been squeezed into the field of LED epitaxial chips are the shares of Zhaochi.
On June 30, Zhaochi Co., Ltd. (002429) announced that the company will invest no less than RMB 1.5 billion and no more than RMB 1.6 billion to invest in LED epitaxial wafer and chip production projects in Nanchang High-tech Industrial Development Zone. The company name is tentatively set for Jiangxi Zhaochi Semiconductor Co., Ltd.).
The company plans to set up a project company in Nanchang High-tech Industrial Development Zone, which is mainly engaged in the production, research and development and sales of LED epitaxial wafers and chips. The first phase of the project plans to jointly invest RMB 5 billion from the parties, including equipment investment of not less than RMB 3 billion. It is planned to be put into operation in 2018.
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