LEDinside: Nichia Tops China’s LED Package Market in 2014, Cree Down to No. 4

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According to its 2015 Chinese LED Industry Market Report, LEDinside, a division of TrendForce, finds the scale of the Chinese LED package market for 2014 reached US$8.6 billion and grew by 19% annually. The general lighting market has been the main driving force, and the rising market penetration rates of commercial and residential LED lighting products has been fueling China’s growing demands.

On the other hand, demand in the medium- and large-size LED backlight sectors have fallen due to technological advances that has reduced LED usage. The downturn in medium- and large-size LED backlight sectors has also been attributed to the LED TV’s easing demand growth. The small-size LED backlight sector, however, has seen strong demands owing to Chinese smartphone brands, which have steadily gained market shares. Moreover, recent developments in fine pitch LED displays has become the newest technological breakthrough that will energize the small-size LED backlight sector. LEDinside therefore expects the demand growth of LEDs for fine pitch displays to accelerate in the next two years.

“China has become the target market for competing LED package companies around the world,” said LEDinside analyst Allen Yu, “In 2014, the global top 10 LED package enterprises took 45.6% of the Chinese package market, showing a yearly market share increase of 2%. The restructuring of the industry has been ongoing and its concentration ratio has also been gradually rising.”

Based on LEDinside’s ranking of LED package companies for 2014, Nichia and Everlight maintained their first and second positions. MLS climbed to No. 3 and was followed closely by Cree and Lumileds ranking respectively at No. 4 and 5.

In 2014, the international LED package companies (excluding those based in China and Taiwan) earned a combined revenue of US$2.35 billion from the Chinese package market. Their revenue from the Chinese market had a year-on-year growth of 17%, which significantly less than the 40% year-on-year growth in 2013. This comparison shows that the international manufacturers have experienced a noticeable slowdown in their businesses. The international companies supply products mainly to developed markets such as Europe and the U.S., where their technology, brand and patent advantages have helped them gain greater market shares in the high-end product markets. Recent developments in the industry, however, indicate that the international companies are losing these superiorities and ceded market shares in the U.S. and Europe to Chinese and Taiwanese competitors. Recent developments in the industry, however, indicate that these international companies are losing these advantages, and are losing market shares in U.S. and Europe to Chinese and Taiwanese competitors.

The annual revenue growth of all Taiwanese LED package companies in the Chinese market for 2014 was 16%, standing at US$740 million. This was a significant turnaround from the negative 1% growth for 2013. In the past, Taiwanese manufacturers were in a rather difficult position in the global LED market due to unapparent cost/performance (C/P) advantages of their products and impact from Chinese rivals. These unfavorable conditions forced some of them to turn to new strategies in 2014, such as launching high-quality, economical products with high C/P ratios. Everlight and Unity Opto, for example, are two Taiwan-based companies that have made these adjustments and consequently have done well in China’s LED backlight market.

Chinese LED package companies are quickly catching up to their competitors. Their annual revenue increased 21% to US$5.49 billion in 2014, outpacing Taiwanese and international competitors in revenue growth rate. First-tier Chinese manufacturers particularly benefitted from rapid growth in their home market, Southeast Asia and other emerging markets. Examples include MLS, Nationstar, Honglitronic, Jufei and Refond, which all reported over 30% year-on-year revenue increase for 2014.

“For Chinese LED companies, technologies and patent issues are presently the main barriers standing between them and the high-end product markets in the U.S. and Europe,” Yu noted. “These problems can be overcome by collaborating with major international manufacturers, as in the case of Refond and Jufei sealing an agreement with Toyoda Gosei this January to obtain the latter’s white-light LED patents.” With the goal of gaining market access in U.S. and Europe, more Chinese package enterprises will soon join forces with foreign counterparts in areas concerning technical expertise and IP assets. 

LEDinside 2015 Chinese LED Industry Market Report

Published Date: 25 June 2015

Language: English

Page: 351

Format: Electronics

Chapter 3: LED market segments were added, covering the market scales on Chinese backlight LED, lighting LED and display LED fields. Also, Chinese LED package market scales in 2015-2019 by both manufacturer camps and power types are estimated. Furthermore, LED supply chain of backlight, lighting, and display markets are discussed.

Chapter 4: 18 Chinese LED package manufacturers business analysis are covered, covering business operation, financial performance, expansion and capacity, major clients, and LEDinside perspective.

Chapter 5: Total 18 International and Taiwanese LED manufacturers are discussed, including company revenue and profit, Chinese revenue performance, and major products and client in China. 

Chapter 6: Adding market scale forecasts on chip, phosphor, and adhesive fields. In chip market sector, Chinese major five chip manufacturers business operation, and major clients in China are discussed. In phosphor market sector, major phosphor manufacturer product development is highlighted.

Market: Observed from market demand to see the opportunities and challenges of LED package industry.

Company: Talking the product, technology, scale, major client, and future development of major LED package manufacturers in China.

Strategy: Opportunities and Challenges for international and Taiwanese manufacturers.

Chapter I  Industry Chain Overview

• LED Industry History
• LED Industry Chain
• Definition of LED Packaging
• Supporting Industries of LED Packaging
  • Lead Frame
  • Silicon
  • Phosphor

Chapter II  China LED Industry Overview

The Upstream LED Chip Industry

• New Expansion
• Industry Polarization, and First-Tier Manufacturer is Bigger and Bigger

The Downstream Application Industry

• Lighting Industry : Product Prices Fall, Driving Penetration Increased
• Display Industry : Intense Competition, Entering into the Industry Reshuffle
• Backlight Industry : Chinese Package Manufacturers Rise

Chapter III  Chinese Package Industry Overview

3-1 LED Package Industry Trends in China

• Chinese LED Package industry Overview
• 2014-2019 Chinese LED Package Market Scale
• 2014-2019 Chinese LED Package Market Scale- By Market Camps
• 2014-2019 Chinese LED package Market Value By Power Types
• Prominent LED Manufacturers Market Position and Revenue Rankings

3-2 Chinese LED Industry Segments, Market Scale, Product Specifications and Supply Chain

• Mid to large-Sized Backlight Market
• Smartphone Backlight and Flash LED Markets
• Lighting Market
• Display Market
• Decorative Lighting Market

Chapter IV  Major Chinese LED Package Manufacturers Analysis

• Nationstar
• Honglitronic
• Refond
• Jufei
• Mason
• ChangFang Lighting
• MLS
• Ledman
• Kinglight
• Smalite
• Hkled
• Wenrun
• Dongshan Precision
• Lightning Opto
• Runlite
• Shineon
• MTC
• APT

Content

• Revenue and Profit
• Product Mix
• Production Capacity Expansion Plan
• Business Summary for 2014
• Profitability Analysis
• Operating Analysis (Days sales of inventory, Days of Sales Outstanding)
• Debt Paying Ability Analysis (Debt Asset Ratio)
• Product Specification
• Overall Evaluation
  • Product
  • Technology
  • Scale
  • Main Customers
  • LEDinside’s Perspective 
  • Note: Not specified currency in this chapter regarded as RMB

Chapter V  International LED Manufacturers Business Operating Activities in China

• European and U.S. LED Manufacturers Operating Activities in China
  • Lumileds, Osram Opto, Cree, Bridgelux, Luminus Devices
• Japanese LED Manufacturers Operating Activities in China
  • Nichia, Citizen, Sharp
• Korean LED Manufacturers Operating Activities in China
  • Samsung LED, LG Innotek, Seoul Semiconductor
• Taiwanese LED Manufacturers Operating Activities in China
  • Everlight, Lextar, Lite-on, Unity Opto, AOT, Harvatek, Edison Opto
  • Company Profile, Product and Business Strategy
  • Revenue and Gross Margin
  • Revenue from Chinese Market and Share
  • Major Clients in China

Chapter VI  China’s LED Package Manufacturers Competitiveness

• Chinese and International Manufacturers’ Competitiveness
• China’s Domestic Manufacturers Competitiveness
  • Maturity in The Industry
  • Industry Concentration
  • Industry Integration Trend
• Industry Growth Opportunities and Threats

Chapter VII  Major Supporting Business in LED Package Industry

• Section One：Equipment Industry
  • Die Bonder
  • Wire Bonder
  • Adhesive Dispensing Machine
• Section Two：Major Materials
  • Chip
  • Phosphors
  • Lead Frame
  • Adhesive (Silicon, Epoxy)
  • Gold Wire

Chapter VIII  New LED Packaging Technology and Hot Topics

• COB Package
• EMC Package
• Flip Chip LED Package
  • Overview
  • Strengths
  • Market Trend
  • Conclusion

Chapter IX   Conclusions and Suggestions

For further information please contact:

Joanne Wu (Taipei)

joannewu@trendforce.com

+886-2-7702-6888 ext. 972