I believe everyone remembers that just a few days after entering 2017, Sanan Optoelectronics issued a price increase letter, which is the first price increase after the LED industry ushered in 2017.

According to the price increase letter, based on the rapid increase in raw material prices, the cost has increased rapidly. Sanan Optoelectronics decided to increase the price of the S-30MB/S-32BB series products by 8% from January 10, 2017.

It is undeniable that the competition in the LED industry is still fierce, but it has gradually shifted to benign competition, and the space for price war between enterprises is getting smaller and smaller.

With the National Development and Reform Commission releasing the new policy of “China's phasing out the incandescent light roadmap”, the US DLC4.0 standard is in force, and consumers' demand for product quality is improved, the era of low-quality and low-price competition has become a thing of the past.

So, what about the chip market in 2017? How will the chip companies conduct strategic layouts and see what these chip companies say?

Hua Can Optoelectronics Marketing Director Shi Songgang

The recent rebound in LED chip prices is expected to continue and continue into the end product segment. The rising cost of raw materials and other factors is a dominant factor in LED price increases. Moreover, after a period of vicious low-price competition, the profit margin of all links in the entire industrial chain has been compressed to the limit, and product price increases become inevitable.

Subsequent chip product prices will continue to be bullish, as the price hike is driven by rising raw material prices, and although technological advances have reduced some of the costs, the two ultimately cannot be offset.

Next, the competition in the LED market will be more orderly. It is expected that the overall chip market will develop more robustly in 2017, and there will be no major fluctuations in supply and demand. At the same time, the chip market will continue to show a state of both supply and demand.

The market for high-efficiency lighting and small-pitch display will continue to increase in volume, further driving demand in the chip market. On the other hand, the rise of various new markets will also bring new growth points to the chip market.

As a capital and technology double-intensive industry, the LED chip industry will become more and more mature as the industry matures, and the market share will accelerate to the enterprises with technological and scale advantages. The pattern of “big ones are strong, strong ones are strong” is becoming more and more obvious.

In addition, Huacan Optoelectronics will continue to expand production, maintaining the momentum of both production and sales.

In 2017, the LED market gradually returned to rationality. For the LED chip industry, it is a year full of opportunities and a challenging year. In the face of the new year, Huacan Optoelectronics has made a strategic layout.

In terms of products, Huacan Optoelectronics will use high-efficiency lighting and small-pitch products as a fist product to increase market share.

In terms of the market, Huacan Optoelectronics regards the overseas market as the development focus, and continues to increase the sales of overseas OEMs and high-end epitaxial wafers in the Korean market, covering high-quality overseas customers, and will further undertake industrial transfer in overseas markets in the future, and the future growth is expected.

In the emerging market, Huacan Optoelectronics is also actively seeking opportunities and making technical reserves.

Lin Hai, Deputy General Manager of Sanan Optoelectronics

In 2017, the LED chip market will still be in short supply. Several domestic chip manufacturers are also busy expanding production. It is expected that the development trend of the entire chip market is good.

Next, whether the price of the chip continues to rise depends on the overall development of the second quarter.

Regarding the product layout, in 2017, Sanan Optoelectronics will follow the original route and focus on the layout of the backlight market, lighting market and display market. In addition, some new products will be added.

It is expected that the overall LED market will be more optimistic this year, and the demand for product applications will continue to rise, and the shortage of supply will continue.

Guoxing Semiconductor Marketing Manager Qiu Jian

Entering 2017, it is expected that the overall market of LED chips will be better in the first half of the year, especially in the backlight and lighting markets. However, in the second half of the year, as large factories expand their production, overcapacity will gradually emerge.

In response to market opportunities in the first half of the year, National Star Semiconductor has also made a gradual expansion plan. Because only by expanding the scale of production can we reduce costs and maintain a certain market share.

For price increases, it is expected that prices will not continue to rise in the future. Up to now, there are more than a dozen domestic chip manufacturers, and there is no formation of a monopoly by several companies.

Therefore, chip prices will still experience a downturn, and corporate competition still exists. On the other hand, whether it is the backlight market or the lighting market, it is necessary to meet the consumer demand of the people, so the price will be lowered.

Of course, in the face of rising prices of chip manufacturers, National Star Semiconductor has also made a corresponding price adjustment strategy. At present, the price of some products has been raised.

In addition, facing the pressure of rising prices, National Star Semiconductor is not only expanding its production capacity, but also improving its market competitiveness in terms of product performance. It is also hoped that by the release of production capacity in the second half of the year, it will win by virtue of product quality and performance.

For the product layout, in 2017, National Star Semiconductor will continue to cater to the market demand, and simultaneously layout in the high power and low power fields, and improve product performance on the basis of the original.

I believe that the overall LED market in 2017 is good.

Dry Photoelectric Market Manager Huo Dongming

In the first half of 2017, the chip market should continue the situation in the second half of last year. Both the display market and the lighting market will be in short supply. It is expected that in the second half of the year, as several chip manufacturers continue to expand production, the demand for products will be alleviated.

I believe that the price of the chip will continue to rise until the second half of the year through the expansion of production, to solve the phenomenon of out of stock, the price will be stable for a period of time.

In the face of rising prices, Ganzhao Optoelectronics has also made some adjustment plans. At present, some price increases have been made on some products.

Regarding product layout, this year, Ganzhao Optoelectronics will follow the footsteps of several chip manufacturers and make key layouts in the display market and lighting market. In addition, some layouts will be made in other niche markets as an aid.

It is expected that the entire LED market in 2017 will be like the chip market, and will continue to be hot in the first half of the year, but will gradually start to stabilize in the second half of the year.

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