Taipei, Monday, July 6, 2015 06:35 (GMT+8)
partly cloudy
Taipei
30°C
Trends in China's LED chip and packaging sector
Jessie Lin, DIGITIMES Research, Taipei [Wednesday 12 December 2012]
Registration required (free) to purchase. Please sign in if you wish to continue.
The China LED industry has developed at a breakneck pace over the last two years, thanks largely to a clear government policy on solid-state lighting (SSL) and the inclusion of LED as one of the key areas of industry for development within the 12th Five Year Plan. Looking at China's LED chip and packaging industry, there is considerable variation in the level of success achieved by the various major players, and this Digitimes Research Special Report analyzes these differences in terms of financial position, capacity and industry presence.
Abstract
Output value forecasts for the China LED industry till 2015 (CNY billion)

The China LED industry has developed a breakneck pace over the last two years, largely thanks to a clear government policy on solid-state lighting (SSL) and the inclusion of LED as one of the key areas of industry for development within the 12th Five Year Plan (12th FYP). While the 12th FYP took effect from 2011, the government published a revised set of 12th FYP Semiconductor Lighting Technology Development Projects in 2012. The revised plans increase many of the numerical indicators and targets from the old version, demonstrating China's desire to up the pace of LED industry development. Digitimes Research compares the two versions for analysis.

While the government has established clear industry policies, the China LED industry still lacks the 20-year history of the Taiwan or Japan industries. The breakdown of sectors in which it is competitive and uncompetitive therefore differs significantly from those regions. Digitimes Research believes that China is most competitive in rare earth materials, LED packages, and end product applications; it is relatively weak in other areas.

This report mainly focuses on China's LED chip and packaging sector because in recent years, the number of MOCVD equipment in China has been growing rapidly due to strong government subsidies. This makes the development of the country's upstream and downstream LED sectors intriguing. There are considerable variations in the level of success achieved by the various major players, and these differences are analyzed in terms of financial position, capacity and industry presence. Digitimes Research believes Sanan Optoelectronics has the highest rating, followed by Electech, Epilight, Tsinghua Tongfang and Silan Azure.

The rise of China-based LED chip makers has also stimulated the growth of the regional LED package industry. However, China's industry ecosystem for the LED package sector differs from those of other regions most notably in terms of fragmentation, with more than 1,000 companies involved compared to only a handful of significant players in other regions. Digitimes Research has a number of players as indicators based on their relatively large size and greater potential for development; the largest of these are Nationstar, Honglitronic, Ledman, Refond, Jufei (JF), and Z-Light.

Nationstar has the greatest potential for future industry presence, with a very comprehensive industry chain covering upstream LED chips and downstream end lighting products. Honglitronic and Z-Light are more focused on downstream LED lighting development, while Ledman, Refond and Jufei are all mainly expanding LED package capacity. In overall terms, Nationstar is the most competitive and is likely to remain the number one China-based LED packaging company.

Table of contents
Price: NT$48,000 (approx. US$1,685)

China AP market 2Q15 shipment forecast

CHINA SMARTPHONE AP | Jun 29, 10:47

Digitimes Research predicts China smartphone AP shipments in second-quarter 2015 will show annual growth due to the depletion of inventories in the first quarter of 2015 and new smartphone products being introduced which contains new AP solutions. The new product...

Taiwan server shipment forecast and industry analysis, 2015

RESEARCH EXTRAS | Apr 10, 15:57

The server market did not perform well in 2014 though rising demand from Internet data centers (IDCs) and China brands helped global shipments (measured by motherboards) grow 7.1% to 10.4 million. Using this as the base for growth, in 2015 the market is expected...

Taiwan LCD TVs – 1Q 2015

TAIWAN DISPLAY SYSTEM | May 22, 15:51

Taiwan's LCD TV makers saw strong seasonal impacts in the first quarter of 2015. Shipments to North America saw a particularly sharp decline as a result of reduced procurement from Mexico and major client Toshiba quitting the North America market.

Taiwan handsets – 1Q 2015

TAIWAN MOBILE DEVICE | May 15, 15:58

Most of Taiwan's handset makers felt strong seasonal effects in the first quarter. Foxconn suffered particularly as a result of drastic drops in orders from Sony Mobile and Microsoft Mobile.

China smartphone market and industry – 1Q 2015

CHINA SMARTPHONE | May 13, 10:56

According to Digitimes Research's survey of the Mainland China smartphone supply chain, as well as other relative vendors, increased demand for Apple's new device models, Mainland China's high-end smartphone models experienced lackluster sales in the first quarter...

Taiwan server shipment forecast and industry analysis, 2015
2015 global tablet demand forecast
2015 global notebook demand forecast
  • Wireless broadband developments in Southeast Asia markets

    As of 2013, the 10 ASEAN nations had a total of over 700 million mobile subscriptions, with the CAGR from 2003-2013 reaching 24%. This Digitimes Research Special Report analyzes the various mobile broadband markets in ASEAN and looks at the respective trends in 4G LTE development for those markets.

  • 2015 global tablet demand forecast

    This Digitimes Research Special Report provides a 2015 forecast for the global tablet market and analyzes the strategies of key market players such as Google, Apple, Intel, and Microsoft.

  • 2015 China smartphone panel trend forecast

    This Digitimes Research Special Report analyzes the strategies of key China-based major panel makers BOE, Tianma and IVO for attacking the different market segments through technology and pricing, and their relationship to local vendors Huawei, Lenovo, ZTE, Xiaomi and Coolpad.