Eat a glimpse of a wise LED expansion

In 2013, LED lighting products are gradually entering the mainstream lighting field, and market demand has entered a critical period of momentum. Many industry research institutions and industry insiders generally expressed optimistic forecasts for LED market conditions throughout the year, and said that this opportunity has not been encountered in the history of LED development.

Faced with the industry recovery in the first half of the year and the huge market prospects, many domestic and foreign companies focusing on LED lighting applications began to seize the lighting market and began to deploy their own channel network. In fact, since the second half of last year, many traditional lighting companies have launched a series of LED lighting promotion activities in the domestic market. LED lighting companies have also begun to deploy their own national dealer network, such as NVC, Dehao Runda, Qinshang Optoelectronics, LED listed companies such as Shida, Wanrun Technology and others are taking advantage of the layout of dealer networks. The warming is the opportunity for upstream epitaxial chips and midstream packaging companies that have suffered from overcapacity last year to see the rebirth.

The market has just seen signs of recovery, and many LED companies have been unable to hold back their dreams of expanding production for a long time. For a time, from the sapphire substrate, epitaxial chip to package and downstream lighting applications, the entire LED industry chain seems to return to the period of crazy expansion in 2008.

Ruifeng Optoelectronics invested 183 million expansion LED project

Ruifeng Optoelectronics announced on the evening of July 5 that the company intends to invest its own funds of 183 million yuan for the SMDLED expansion project, thereby further enhancing the company's overall strength in the LED packaging industry, consolidating and highlighting the company's large and medium-sized LCD backlights. LED, lighting LED market segment leading position.

According to reports, the construction period of the project is from July 1, 2013 to June 30, 2014. The construction content is to invest in the construction of 504 KK large-size LCD backlight LED devices, an annual output of 5918KK lighting LED devices, and an annual output of 1500 KK cars. Electronics and other devices.

According to the company's calculations, the above-mentioned expansion projects can generate sales after the production capacity is increased. It is estimated that the annual average operating income will increase by 816 million yuan, the annual average net profit will be 69.36 million yuan, and the internal rate of return of the project will be 40.16%. The yield is 30.94% and the investment recovery period is 3.66 years.

After the implementation of the above-mentioned expansion project, it can effectively solve the problem of insufficient capacity of the large and medium-sized LCD backlight LED devices and lighting LED devices in the short-term, and expand the automotive electronics and other LED devices, which makes the company more flexible in market development. At the same time, further improve product quality, better meet customer orders, and provide a solid guarantee for the company's sustained and steady development.

Sanan Optoelectronics 280 million yuan expansion in Xiamen

On June 19, Sanan Optoelectronics announced that its subsidiary Xiamen Sanan Optoelectronics Technology Co., Ltd. will invest no more than 280 million yuan to add 20 international single-cavity machines or 5 four-cavity machine-connected gallium nitride. MOCVD equipment and expansion of some LED chip production lines. Benefiting from this, Sanan Optoelectronics will receive a government subsidy of 100 million yuan.

Specifically, the Xiamen Municipal Government and the Siming District Government of Xiamen City, in order to encourage and support the development of the optoelectronic industry, will refer to the support policy of the Xiamen Torch Park to subsidize the import of MOCVD equipment from the enterprises under its jurisdiction, and purchase 20 units of Sanan Optoelectronics Technology. Subsidies for MOCVD equipment: a single-cavity 54-piece model (converted to 2 inches) is subsidized at no more than 5 million yuan per unit; or 216 (converted to 2 inches) four-cavity joint models are given at 20 million yuan per unit. subsidy.

“MOCVD is the core equipment for the production of LED epitaxial wafers. Since MOCVD has at least one year of expansion, the LED industry has no new capacity in the adjustment period of the past two years. The main business of each company focuses on improving capacity utilization. A component industry researcher reminded, but from this year's situation, many domestic and foreign LED companies have begun to expand their production capacity. LED demand is still fluctuating and product prices are at risk of falling.

Industry chain of crisis

In fact, since 2012, the overheated investment in LED upstream has caused a rapid decline in prices, and the competition of downstream companies has been fierce, which has caused some enterprises to close. This situation continues until this year. The survival status of Shenzhen LED enterprises can be described as the epitome of the whole country. There are many porridges and few good and bad, and some enterprises rely on subsidies to take the project to live. At the same time, the lack of technology, core parts such as chips, is highly dependent on imports. Enterprises do not have research and development strength, rely on plagiarism, and fight price wars, making the market that is not standardized more chaotic. Coupled with government support, it will not only solve the problem of overheated investment in the industry, but even have counterproductive effects.

In addition, industry risks are linked to financial risks. The dilemma faced by the LED lighting industry has also triggered commercial banks' concerns about the increase in non-performing loan ratios. In particular, "enterprise clusters", and the LED lighting industry clearly meets this feature. It is reported that the focus of the CBRC's work in 2013 still covers the prevention and resolution of financial risks, which are specifically classified into “credit default risks in financing platforms, real estate, enterprise clusters and overcapacity industries”. What worries the government and banks is that the LED industry has been very impetuous and obviously overheated. Many companies have failed because of the lack of land and local government policies, and the capital chain has broken down. The entire LED industry has actually experienced overcapacity, and even worried that the LED industry will become the second photovoltaic industry. In addition, as of now, there are not many LED companies in Shenzhen with an output value of over 100 million yuan. Compared with the emerging strategic industries that have developed over 100 million Internet or biological projects, the LED industry, the government has no driving force in the current shortage of land resources.

Overcapacity

At a time when LED investment has become more and more surplus, compared with Shenzhen, the heat of other local governments in the LED industry is still not decreasing. Like the investment group from the Fuyang High-tech Zone in Hubei Province, it has invited many led companies to focus on the LED industry as the future development of high-tech zones. Prior to this, 15 industrialized bases such as Xiamen, Shanghai, Dalian, Nanchang, Shenzhen, Yangzhou and Shijiazhuang have been formed nationwide. Although the LED industry has the same core technical defects as PV, due to its wide application fields and wide domestic market, the industry expects that 2013 will be the year of LED industry explosion.

Although some governments have announced the abolition of LED industry planning, domestic commercial banks to continue to implement measures to limit overcapacity in overcapacity enterprises, the signal at the national level to resolve the LED industry has been released. As far as the general lighting field is concerned, with the “popularization” of LED lamp prices, the LED lighting industry will also have an outbreak period, and its energy-saving and durable features will be favored by individual users. LED general lighting will get rid of the engineering landscape. Bondage. From the perspective of industrial growth, the development rate of LED general lighting is likely to reach 100% or more. High growth is the result of a combination of incremental and stock markets.