Analysis of the current situation of the LED full-color screen industry

Recently, news broke out on the Internet that Taiwan Epistar has already raised the prices of some chip products, coupled with the Mulinsen price adjustment incident that broke out not long ago, this can not help but make people speculate: is the LED full-color screen industry is recovering, or packaging devices And chip prices have bottomed out? With these questions in mind, the author exclusively interviewed Yang Tao, general manager of the marketing department of Hangzhou Silan Mingxin Technology Co., Ltd., and he gave a unique interpretation of the current industrial development. Incessant expansion of production in the upper and middle reaches of the industry Product price cuts have become an inevitable trend. In 2016, many packaging and chip manufacturers focusing on the LED display industry have experienced the situation of "increasing production without increasing revenue, increasing without increasing profits", and some companies are even forced to discontinued. Silan Mingxin Yang Tao said: "This is mainly due to the price reduction of products. The current LED full-color screen industry has gradually formed a large pattern, but most companies in the second echelon are using production expansion to reduce costs and seize market share. Both chip and packaging factories in the middle and upper reaches are desperately filling capacity, resulting in oversupply in the market, which is the main reason for the rapid decline in the price of packaging devices and chips. In order to make up for this part of the loss, companies can only make up for it by increasing production , which in turn prompts enterprises to continue to expand production.” In the next few years, product technology will continue to mature, market demand will also increase, production capacity will continue to expand, and product price declines will be painful, but this is an inevitable trend. For LED chips, Yang Tao predicted: "The price of chips will drop this year, but not the 40% drop last year. Chip prices fell too much last year, and prices have risen this year compared with the same period last year." The pattern of the LED full-color screen industry has been set, and the industry reshuffle will continue. Some industry leaders once said that the pattern of the LED full-color screen industry has been set. According to market demand, we roughly divide it into three parts: mid-to-high-end general market, performing arts and creative display market, and channel wholesale market. As we all know, the big names of listed companies standing at the top of the pyramid have begun to "change careers" to engage in media, advertising, and sports. They are the backbone of leading the development of the industrial structure and firmly control the industry's mid-to-high-end large-scale projects and municipal project markets. The creative display market requires rich experience, certain project accumulation and creative design and R&D capabilities. Manufacturing costs have dropped, prices have been lowered, and profit margins have gradually shrunk. Listed companies have been forced to give up part of the market. This has enabled more OEMs and ODMs (channel wholesale OEM) manufacturers to see opportunities and compete for food. Fight price wars. As Yang Tao said, although the overall pattern of the industry has been determined, the LED display application industry is still in the reshuffle stage, and some companies that rely solely on price wars, do not have an advantage in cost performance, and have no obvious brand awareness will be eliminated in the process of reshuffle. The industry will gradually become stable and healthy. The same is true for the packaging link in the middle reaches. The basic pattern has been set. Large and medium-sized packaging companies such as Mulinsen, Xinda, Guoxing, Mecale, and Jingtai have occupied most of the LED full-color screen packaging device market. It can meet the needs of various levels of markets at home and abroad from ordinary LED screens to small pitches. Needless to say, the upstream LED chip industry has a high technical threshold, and industry integration has already begun and tended to be stable. At present, LED chips in the domestic display field mainly come from Epistar, Sanan, Silan Mingxin, and HC Semitek. , Qianzhao Optoelectronics and other enterprises. .