Taiwan LED company's September revenue data improved:
Taiwan's LED companies' revenue data for September showed that in September, the growth rate of Taiwan's eight major LED companies continued to be negative. The year-on-year growth rate of cumulative annual revenues was all negative, indicating that the industry's economic prosperity is far below the 2014 level. However, the ring data shows that the chip makers Jingdian, Ronda and packaging manufacturers Yiguang, Dongbei's revenue growth rate are positive, significantly better than August performance. It is expected that with the arrival of the traditional consumption season, the revenue of Taiwan LED companies will improve.
The mainland enterprises are pressing harder and step by step, and the LED industry encounters the change:
Data show that the price of LED bulbs replacing 40W and 60W incandescent lamps in the world continued to decline slightly in September, and the supply and demand form of the entire LED industry is still grim. In order to control costs and improve performance, mainland packaging companies have begun to adopt land-based chips, and Taiwan-funded packaging leader Yiguang also publicly confirmed the procurement of LED chips for land-based enterprises at the end of September. Due to the relatively low LED lighting threshold and the government subsidy support from mainland chip companies, the price advantage of land-based chips is obvious, and it is easy to become the target of choice for Taiwanese companies. At present, the number of MOVCDs in the mainland has accounted for 47% of the global MOCVD. With the gradual release of production capacity in the second half of the year, the price advantage has become more apparent, and Taiwan LED chip companies will face serious threats.
India's LED lighting market is large, and land-based companies are expected to win:
Due to power shortages in India, the government has been implementing an LED light bulb stimulus policy. The data shows that the LED lighting market in India is expected to grow by more than 32% from 2015 to 2020, and the market is huge. From January to August 2015, China’s exports of LED lighting products to India totaled 355 million U.S. dollars, a year-on-year growth rate of 76.61%. In the same period of China’s exporting countries, the number of exporting countries rose from 17th in 2014 to 7th. Become an important source of revenue for local LED companies. Due to the low level of India's national economic development, the cost will be the core consideration of India's rotation plan, and the land-based LED companies have obvious advantages in cost, and are expected to lead in this round.
The LED bulb price war has been going on for more than four months, and the price has now dropped to the bottom, and the industry is highly competitive. In this context, resource integration within the industry (including horizontal integration and vertical integration) will be an inevitable trend, and companies with technological and scale advantages will be in a favorable position in the integration.
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