Taipei, Thursday, April 17, 2014 09:18 (GMT+8)
sunny
Taipei
25°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
  • Unitech to ramp up capacity for any-layer HDI and flex-rigid boards

    Bits + chips | 11h 32min ago

  • FIC ruggedized tablet subsidiary receives procurement orders from Brazil

    IT + CE | 11h 54min ago

  • China market: Local smartphone vendors accelerating LTE launches

    Mobile + telecom | 12h 5min ago

  • Taiwan market: Epson launches CISS printers

    IT + CE | 12h 8min ago

  • O-Film expected to produce for 35% of handset touch panels in 2014

    Displays | Apr 16, 20:20

  • Taiwan solar cell makers see surging orders from China

    Green energy | Apr 16, 20:17

  • Digitimes Research: In-house no longer useful for Qualcomm

    Before Going to Press | Apr 16, 20:58

  • China white-box tablet vendors gaining foothold

    Before Going to Press | Apr 16, 19:58

Pause
 | 
View more

2014 China smartphone market and industry - Forecast and analysis

CHINA SMARTPHONE | Mar 25, 18:27

This Digitimes Research Special Report examines two aspects of the China smartphone market. The first part covers the China smartphone market, measuring local shipments in China from both China-based vendors and international vendors such as Samsung and Apple...

2014 global high brightness LED market, trends and shipment forecast

RESEARCH EXTRAS | Mar 13, 18:26

Digitimes Research estimates that the production value for high brightness LED chips will have an annual growth rate of 12.9% and reach US$12.74 billion in 2014. The applications that will drive growth momentum are LED lighting, tablet, mobile, and automotive...

Global tablet market – 4Q 2013

GLOBAL TABLET | Apr 8, 12:22

Global tablet shipments grew 25% sequentially and 29.8% on year to reach 78.45 million units in the fourth quarter of 2013 benefiting mainly by economic recoveries of Europe and North America, which relatively boosted demand during the year-end holidays.

China smartphone AP shipments – 4Q 2013

CHINA SMARTPHONE AP | Apr 8, 12:20

Global smartphone AP suppliers will see their shipments to China grow only 13.5% on year and drop 3.1% on quarter in the first quarter of 2014. The largest supplier MediaTek is seeing its shipments weakening and its LTE products so far still have not yet been...

China touch panel industry – 4Q 2013

CHINA TOUCH | Apr 8, 12:17

From the fourth quarter of 2013 to the first quarter of 2014, China touch panel makers' largest growth will be in the notebook and 11-inch and above size tablet segments, with makers such as O-Film Technology and Mutto Technology focusing on metal mesh thin-film...

2014 global high brightness LED market
China FPD industry, 2013-2016
2014 global notebook demand forecast
  • Trends in the upstream LED equipment and materials industries, 2H13

    This report examines the outlook for upstream, which includes MOCVD equipment, rare earth materials and sapphire substrates, is also particularly significant as an indicator of trends in the LED industry as a whole over the next year.

  • Global AMOLED market analysis and forecast, 2011-2015

    This report analyzes the current state of development and strategies of the two largest AMOLED panel makers, Samsung and LG Display, examines the potential of the AMOLED handset panel and OLED TV markets, and takes an in-depth look at the competitiveness of S. Korea in the AMOLED sector.