Benefiting from application demand, China's SMD LED market is optimistic

With the good expectations of the future status of SMD LED in recent years, the market continues to show a thriving and prosperous atmosphere. Benefit from SMD products, there is a large room for brightness enhancement and cost reduction on the upstream chip side than other LED products, and there is greater market demand in the downstream application side, especially the large-size LED backlight and LED lighting requirements started in 2009. Under the continual growth of the blast, GLII estimates that global SMD product demand will rise sharply in the next 2-3 years.

SMD LED market growth is accelerating

In the past five years, when the output and sales of the entire LED industry increased by 30% and 20% respectively, the market share of SMD LEDs only accounted for a small part of China's LED packaging industry. Sales in 2007 accounted for only 10% to 15% of all LED devices. The growth of the SMD LED industry is very slow compared to the entire industry. In 2008, SMD LED revenue increased by only 5% to 10%.

However, with the changes in independent innovation and business strategies of major manufacturers in China, by 2009, China had 153 MOCVD equipment, and the output of chips increased by 25% compared with 2008, reaching 2.3 billion yuan, and the packaged output value reached 20.4 billion yuan. Power LEDs and SMD LEDs are growing faster. In 2010, it is expected to increase to 28 billion yuan.

According to research institute isuppli, from 2006 to 2012, the global LED market sales compound growth rate is about 14.6%, driven by emerging sectors such as large and medium-sized LCD backlights, automotive lighting and general lighting, and it is expected that by 2012, LED The market size will reach $12.3 billion. As far as the LED packaging industry is concerned, according to the Taiwan Optoelectronics Technology Industry Association (Pida), from 2005 to 2010, the global average annual growth rate of led package gross output (cagr) was 13.6%. By 2010, global LED packaging The total market output value will reach 11.583 billion US dollars, of which SMD LED and power LED will occupy 80% of the output value.

SMD LED's strong downstream demand support

With the rapid increase in the demand for large-size LED backlights, market research organizations are constantly forecasting new LED penetration rates. In 2010, global LED demand is expected to grow by 40% annually. Compared with 2008, mobile phone backlight applications accounted for 40% of the overall market. In 2013, large-size backlights will grow to 50%, and mobile phone backlights will shrink to 11%. The demand for desktop backlights will be 6~7 times larger than that of the mobile phone market. In addition, the proportion of lighting applications will grow to 16%. Backlighting and lighting will be the main growth markets in the future.

Based on the global mobile phone scale of 1.35 billion units, the demand for white LEDs will reach 13.5 billion. If the penetration rate of the desktop backlight market reaches 100%, the demand for NB will require 6 billion white LEDs and LCD monitors in one year. The demand for white light reaches 11.5 billion, and the number of LCD TVs is 71.6 billion. Among them, the demand for white LEDs for LCD TVs is the scale of 5.3 mobile phones. The market will drive the LED industry to break out. .

In 2009, whether it is Samsung, LG, Ruixuan, Sharp, Panasonic and other international manufacturers, or domestic domestic Hisense, TCL, Skyworth, Tongfang and other domestic manufacturers, have launched a variety of sizes of LED-backlit TV, upgraded with LED backlight The proportion of the species. According to experts' prediction, the use of large-size TV backlights brought by Samsung as a pioneer has only zero penetration at the beginning of the year. In 2009, the penetration rate was less than 4%, and next year it is expected to reach 10%. In 2012, it will reach 40%. In 2013, large-size backlights will account for 50% of the global LED application market.

In addition, in the new market, new applications, and the LED lighting inspection standards in early 2010, the LED lighting market in 2010 has grown considerably. It is estimated that from 2007 to 2012, the global LED lighting market will grow at a compound annual growth rate of 28.5%. In 2012, the global LED lighting market will reach US$5.29 billion. According to Philips' prediction, LED lighting will account for 90% of the total lighting market in 2020, and traditional general lighting will only have 10% market share.

SMD LED production cost and capacity advantage

Compared with other types of LED devices, SMD products have the advantages of high luminous efficiency, low cost and fast production speed. Because SMD products are driven by low current, the luminous efficiency can reach 110-120 lumens per watt, and the cost is much lower than that of high-power LEDs. At the same time, one machine can seal more than 200,000 SMD products a day at the package speed, which can be 60-70,000 more than other types of LED products.

Taiwan's largest packaging company, Everbright, has a large volume of LED TV backlight shipments in 2010. It has received orders from major manufacturers such as LG, Samsung and Ruixuan. Initially, SMD's monthly production capacity will double from 1 billion to 2 billion. Another big factory, Dongbei, currently has a monthly capacity of 400 million SMDs. In 2010, it will also lock in the expansion of SMD packaging capacity for large-size backlights. SMD's monthly production capacity will reach 600 million to 800 million, while Hongqi and Qihong also have Expansion plan. In 2010, Taiwan's SMD capacity growth was at least 50% to 1 times.

In 2009, the output value of China's LED packaging reached 20.4 billion yuan, up 10% from 18.5 billion yuan in 2008; the output increased by 10% from 9 billion in 2008 to 105.6 billion, of which SMD LED accounted for 10%, about 10 billion. only. Guoxing Optoelectronics ranks first in the domestic market with SMD's monthly production capacity of 200 million, occupying a market share of nearly 30%. The main products of Guoxing Optoelectronics are mainly blue light, which is suitable for applications in mobile phones and home appliances. Jiuzhou Optoelectronics ranks second with a monthly production capacity of around 100 million pieces. Its products are mainly used for lighting, and most of its production capacity is used for its own downstream applications. Ranked third in the domestic market, Ruifeng Optoelectronics, the first in Shenzhen, although the current monthly production capacity is only half of Jiuzhou, most of the products are used in mobile phones, PDA button switches, medium and large backlights, car audio, In the high-end product field such as instrument panel, the focus is on the full-color product field, especially in the medium and large-size backlights. The automotive electronic backlight field ranks first in the domestic market, among which SMD LED2009 is the medium and large backlight. The annual supply is 77KK, and it was 96KK in the first half of 2010. It is the only packaging manufacturer in China that has successfully mass-produced and received large orders from TV manufacturers.