Taipei, Friday, February 24, 2017 14:14 (GMT+8)
showers
Taipei
17°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)
Realtime news
  • Winbond mulls opening 12-inch wafer fab in Singapore, says report

    Bits + chips | 23min ago

  • Arcadyan sees EPS more than double in 2016

    Mobile + telecom - Stockwatch | 23min ago

  • Silitech suffers losses in 2016

    Mobile + telecom - Stockwatch | 24min ago

  • Advantech nets NT$8.96 per share for 2016

    Before Going to Press | Feb 23, 22:11

  • Digitimes Research: Japan aims at 20% of cars to be self-driving in 2030

    Before Going to Press | Feb 23, 22:10

  • Acer provides smart health platform to Changhua Christian Hospital

    Before Going to Press | Feb 23, 22:08

  • SSD and eMMC prices to rise 15% in 2Q17, says DRAMeXchange

    Before Going to Press | Feb 23, 22:07

  • Oppo, Vivo will struggle to succeed in overseas markets

    Before Going to Press | Feb 23, 22:06

  • Danen Technology suffers net loss per share of NT$2.10 for 2016

    Before Going to Press | Feb 23, 22:04

  • CyberLink nets NT$3.15 per share for 2016

    Before Going to Press | Feb 23, 22:03

  • SunPower to set up PV module joint-venture in China, say reports

    Before Going to Press | Feb 23, 22:03

  • Fraunhofer ISE reaches 21.9% efficiency for N-type polycrystalline solar cells

    Before Going to Press | Feb 23, 22:02

  • AMOLED penetration of smartphones estimated at over 27% in 2017

    Before Going to Press | Feb 23, 21:59

  • Kaimei Electronic fails in bid for stake in Ta-I

    Before Going to Press | Feb 23, 21:57

  • Giantplus Technology to deal out 2016 dividend of NT$0.20

    Before Going to Press | Feb 23, 21:56

  • TPK Holding to not deal out dividend for 2016

    Before Going to Press | Feb 23, 21:56

Pause
 | 
View more

Global notebook shipment forecast, 2017 and beyond

RESEARCH EXTRAS | Jan 25, 14:34

Digitimes Research estimates that 2016 was another down year for the global notebook market, with shipments dipping below 150 million. While the market will continue shrinking in 2017, the drop will be much less dramatic, as Windows 10 adoption in the enterprise...

Global AP demand forecast, 2017-2020

RESEARCH EXTRAS | Jan 16, 12:01

Digitimes Research expects global application processor (AP) shipments to increase more than 8% in 2017 and surpass the 1.9 billion mark, with smartphones remaining the main application. After slumping in 2015, Qualcomm returned to form in 2016 and will continue...

Taiwan LCD TVs – 4Q 2016

TAIWAN DISPLAY SYSTEM | Feb 20, 15:08

Asia is becoming more important for Taiwan's LCD TV makers. Asia's share of their shipments has increased to a level comparable to that for North America.

Taiwan LCD monitors – 4Q 2016

TAIWAN DISPLAY SYSTEM | Feb 20, 15:07

The LCD monitor market has yet to hit bottom, with Taiwan makers expected to see their shipments continue to fall in the first quarter of 2017.

China smartphone market and industry – 4Q 2016

CHINA SMARTPHONE | Feb 18, 14:59

Digitimes Research estimates overall fourth-quarter 2016 shipments from China-based smartphone firms were 181.8 million units with an on-quarter increase of 4.4% and an on-year increase of 12.8%.

Advantest
Intel strategies in the mobile device market
The transition to 4k TV - UHD TV market forecast, 2014-2017
  • 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.