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LED chip market boom

After 2013, China local government no longer blindly support all LED chip companies, but focus on a few outstanding key enterprises. Therefore, the whole LED chip industry in 2013 production capacity expansion is very limited, only the leading enterprises began to seek expansion at this stage, and the expansion of production capacity is mainly based on the needs of the. The listing Corporation, new capacity in 2013 mainly Huacan photoelectric, Huacan photoelectric since listing in 2012 conducted large-scale capacity expansion; Optoelectronics the issuance of production expansion of production capacity is expected in late 2014. 2013-2015 years LED lighting the rapid growth, new capacity should be added quickly demand to digest.

According to the display of 2014-2018 years China LED industry marketing and strategic planning investment analysis report "Data Publishing Industry Research Institute", every year to upgrade the 20-25% LED chip light effect, if prices remain unchanged, the LED chip wool interest rate is elevated, so in 2014 is expected to LED chip possible shipments and gross margin Shuangsheng situation.

Prediction, 2014-2020 years China LED chip market will maintain a 11.85% average annual growth rate of growth, in 2020 Chinese LED chip market demand scale of nearly 17500000000 yuan.

It is understood, because the LED chip industry profits shrink, LED products to enter the parity period, many enterprises hope to rely on the expansion of the scale to obtain more profits, the current Chinese MOCVD capacity utilization rate is only about 30%, operating rate is only about 50%, while the downstream lighting market demand relatively strong, but as a result of years of production capacity expansion, and the utilization rate is not high, causing the machine loss is huge, so the LED industry in the future mainly in the integration of existing resources, expand production capacity may exist in several large listing Corporation, the larger the probability.

The rapid development there are still challenges

Although the current security chip market developed rapidly and the prospect is optimistic, but also face the challenge of great development.

The first is the development of chip speed how to fast track the product and industry. The roadmap trends of current security products generally determined by the security chip, chip is not released, the corresponding products also basically cannot be published. But from the current view of the supervision industry in Dongguan, generally about half a year, there will be a series of new product demand was born, and the current update cycle security chip in general little more than a year. This creates a demand has been waiting for the chip of the situation, how to make the development of chip can match development demand, putting pressure on the chip business, because it means that improve the human cost, market and upgrading too frequently will also bring value of waste. Another aspect, subdivision monitoring industry to demand more and more obvious, a chip former can be used in most of the products on the situation is now very difficult to meet the needs of users, how to subdivide the chip, have a definite object in view, in order to meet the needs of users is also a problem.

The second is how to guide the healthy growth of the industry chain, due to the special and key security chip, the market behavior of security chip manufacturers can easily affect monitoring industry, how to also protect the market in the expansion of the market, enterprises need more consideration is the chip.

The chip cost control is also a challenge, the current main manufacturer of security chip amount is not much, but each has great competitive pressure, in addition to monitor industry overall profit decline because the resulting from the pressure of terminal manufacturers, the cost of intellectual property is a very large expenditures.

Energy saving and environmental protection and low power consumption demand, at present the relevant environmental protection department of the security product power requirements more and more high, also a major index of products export. Contradict is improving performance always depend on energy consumption increase.

Looking to the future, the development of security chip will be more rapid, will play more and more important role in the monitoring of industry chain, for the security chip enterprises, opportunities and challenges coexist, only close to the user, rational development, in order to maintain long-term and steady growth progress.