The wind of the upstream products of LEDs to increase prices will start again in late August.
Earlier this year, after Taiwan’s Jingyuan Optoelectronics and some LED packaging manufacturers successively sent out product price communication letters, the largest LED chip factory in China, Sanan Optoelectronics and Xinda Optoelectronics in Xiamen also passed the product price adjustment information. .
Different from previous years, behind this price increase, the LED industry experienced fierce market price competition for several years, and the continuous release of production capacity has caused the gross profit margin of many companies to continue to decline. Even many companies have only relied on large-scale shipments in recent years to make up for lost profits.
No matter how many enterprises in the middle and upper reaches of the chip and devices will follow up, how much increase, for the current downstream lighting applications, the conduction effect is difficult to show.
In the recent semi-annual report on the performance of Sunshine Lighting, the person in charge of the company said that the overall price decline of LED lighting products this year is less than that of the previous year, and the price reduction is about 20-30%. There will be room for price decline in the next two years, but the decline Will slow down.
On the one hand, the price of downstream lighting products is almost impossible to rise, and it will not easily pass the price increase in the middle and upper reaches directly to the market and end users; on the other hand, due to the demand of industry competition and shuffling, some manufacturers with weak anti-risk ability will be accelerated. Speed ​​out.
This statement, from the first half of this year, the performance of LED listed companies seems to be able to see.
According to the statistics of the High-tech Research Institute LED Research Institute (GGII), the output value of the LED lighting market in the first half of this year was about 212.7 billion yuan. It is expected to reach 457.6 billion yuan in 2016, an increase of 15.35% year-on-year.
The data shows that 38 LED-related listed companies accounted for 10.7% of the industry's revenue in the first half of the year, breaking the 10% mark for the first time, indicating that the overall concentration of the LED industry is gradually increasing.
Is it up or not?
In the price adjustment letter issued this time, Cinda Optoelectronics said that due to the sharp increase in prices of upstream chips and brackets (generally more than 10%), and the continuous increase in labor costs, the price of RGB lamp beads produced by the company is currently Based on an increase of 5%. The price adjustment will be implemented from September 1.
The price adjustment includes four subsidiaries of Fujian Xinda, Guangdong Xinda, Anpuguang and Xiamen Xinda, and the price adjustment range is 5%.
The price adjustment letter of Sanan Optoelectronics showed that the raw material price bottomed out, among which gold (up 27% or more from the beginning of the year), the substrate (up more than 30% from June); and because the small and medium power chips are small in size, the latter process Consumption of a large number of sorting and testing capacity, unit labor costs rose, leading to a sharp decline in the output value of the latter stage of the process. The price of some small and medium-sized products is now up 10%, and will be implemented on August 25.
Although the price increase of some enterprises will definitely trigger a series of chain reactions in the market. However, no manufacturer will choose to follow the price increase.
The relevant person in charge of Mulinsen said that at present, some of the price-increasing packaging factories have a small market share, and it is impossible to see the law behind the price hikes of these enterprises. Considering the long-term relationship with customers, Mulinsen will not easily adjust the price.
In the view of Wang Gaoyang, deputy general manager of Hongli Zhihui, the possibility of grouping up in the packaging industry is not too great, and from the current price trend, it may be a high probability event to gradually stabilize.
However, with the price adjustments of Jingdian, Sanan and Cinda, there may be a group of companies that will follow the price adjustment. Wang Gaoyang said that it is still possible to define this as a node. It is inevitable that the market will return to rationalization.
For the price increase of upstream chips, Bian Defei, vice president of Huacan Optoelectronics, said that the LED chip industry is still in short supply in the first half of the year. Due to the rapid growth of downstream market and display market demand, chip companies can not ship. happens sometimes.
At present, it is necessary to consider whether the price increase of the chip requires a one to two year release cycle due to technical updates and equipment commissioning. At the same time, the packaging capacity is still expanding rapidly in recent years, so as a chip company, it will still comprehensively evaluate the next step.
Due to the gradual release of the overall production capacity and the concentration of market concentration, the second half of the year is a good time for many manufacturers to take the opportunity to push up shipments.
In this context, it is too early to talk about the large price increase in the market.
Price increase event or promotion of industry reshuffle
According to industry insiders, price hikes are good, although they will face short-term pressures, but in the long run, it will help the packaging industry accelerate integration and accelerate the scale effect.
Liu Lin, the deputy general manager of the same party, said that the upstream chip factory will make a small increase, which will not affect the normal operation of the same party, and will keep the original price unchanged, because the packaging factory has accessories, gold wire, glue, etc. in addition to the chip. And equipment. The current cost of the chip is not large.
According to industry insiders, the price increase behavior of some enterprises may be that they have pushed the price too low in order to seize a certain market share. After a period of time, they found that the pressure on the company was too large and forced to adjust.
In the view of Tang Maoping, director of the Lidaxin Engineering Center, the price increase may speed up the industry's reshuffle.
In the future, the LED industry will have a big adjustment, and now it is an inflection point. At the same time, now that the situation has been different two years ago, the lamp beads are also small in the proportion of the entire lamp, so it has little effect on the downstream lighting industry.
At the same time, some domestic lighting manufacturers, especially export-oriented enterprise chips, have been introduced abroad. For these enterprises, they have more competitive advantages.
Tang Maoping said that the LED industry is now technology-oriented rather than price-oriented in the past year, especially the promotion of intelligent lighting products. This effect is more obvious.
Overall, the price increase in the middle and upper reaches has little effect on the LED lighting companies in the downstream first echelon. On the contrary, for some small and medium-sized lighting companies, the pressure will become even greater.
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