The change in supply and demand of chips has led to the "marriage" of chip packaging
[Text / Zhao Hui] Time to move to the world, with the recovery of LED lighting application market in 2013 and rapid improvement, the supply and demand relationship in the chip market is undergoing profound changes.
The large-scale rapid expansion of packaging companies has brought about a rapid expansion of packaging capacity this year, and chip companies have been subjected to a profound lesson of oversupply in the previous two years, and the response has generally been half full, and the time required for chip expansion has been long. At present, the capacity of chip companies has been unable to meet the needs of midstream packaging. All these changes are particularly evident in the first half of this year.
The domestic LED industry was mainly concentrated in the packaging process. Because of its low technical threshold and relatively small investment, it is in line with the basic situation of domestic enterprises, and packaging enterprises are everywhere.
At that time, the chip supply side was basically the world of Europe, the United States, Japan and South Korea, such as Cree, Osram and Taiwan's crystal power, Yuanyuan, the new century, etc., the chip profit margin is at a relatively high level.
In 2009, the situation of out-of-stock chips made domestic LED companies see the bright future of investment chips. As a result, domestic chips have also begun the first round of investment boom. At the peak, there are dozens of chip factory projects in the year. The domestic Sanan Optoelectronics and Dehao Runda also settled in Wuhu at that stage. Under the strong support of the Wuhu Municipal Government and high subsidies, both parties spent huge sums of money to purchase the key upstream production equipment of LED--MOCVD.
In the following years, a number of chip companies were completed and put into production. At this time, the downstream application side of LEDs was caught in a dilemma of growth, which led to the collapse of many chip companies that had been established in the past, and the capacity utilization of chip factories that have been put into production. Always in the low position.
According to the statistics of the High-tech LED Industry Research Institute (GLII), in 2012, the total number of MOCVD in the domestic LED industry reached 917, while the MOCVD capacity utilization rate was only about 30%, and the operating rate was only about 50%.
Turning to 2013, from the middle of the year, the downstream lighting market began to recover and demand was strong. As a result, the chip package of the upper and middle reaches has been warmed up, and the package is the first to feel this trend. In particular, white light devices for lighting were in short supply in the second half of 2013.
Expansion has become the fastest choice for packaging plants.
Since last year, domestic packaging manufacturers Hongli Optoelectronics, Guoxing Optoelectronics, Ruifeng Optoelectronics, and Mulinsen have been continually purchasing equipment, and their production capacity has almost doubled.
“As of the end of 2013, the company's packaging capacity reached 1000 KK per month. In the first half of 2014, the company has developed a production expansion plan. It is expected that by the middle of 2014, the packaging capacity will reach 1400 KK/month.†National Star Optoelectronics Secretary Liu Di is at the reception agency. Investors also said that National Star Optoelectronics is accelerating the pace of expansion.
Another packaging company "G20-LED Lighting Summit member company" - Ruifeng Optoelectronics also said that LED lighting packaging orders will be discharged until the end of this year, the company has been expanding production to cope with insufficient capacity; the current company's lighting packaging monthly capacity is about 500kk -600kk, SMD SMD LED expansion project will be completed by the end of the year.
At the same time, with the gradual improvement of the technology of extending chips at home and abroad, domestic chips have been increasingly recognized by domestic packaging companies.
“Indoor lighting, commercial lighting, and the replacement speed of chip localization are very fast.†Li Guoping, chairman of Hongli Optoelectronics, said that 80% of the chips were purchased from Taiwan or foreign brands three or four years ago, and now 90% of them start. Purchase domestic chips. Our customers are now accepting, even proactively saying: Can you use a chip from a certain domestic brand?
At the other end, due to the huge investment in chip expansion, chip companies generally need to raise funds to purchase equipment through additional issuance, etc., which takes more time, even if it is not bad money, from the development of production expansion plans to procurement of equipment, equipment Import, installation and commissioning to the final mass production. It is not difficult to complete in one year.
This creates a huge time gap, and the expanding package capacity and the existing chip capacity have a mismatch. As a result, the supply and demand relationship of the chip has quietly changed.
In the current period of rapid outbreak in the downstream, the demand for devices from lighting companies is expanding. For packagers, whoever can get the most cost-effective devices in time can occupy a larger market share. The battle for chips has also gradually heated up.
Therefore, it is not difficult to understand that the chip package "marriage" spread. On the one hand, chip companies need to use this round of market upswing to digest future production capacity; on the other hand, the capacity expansion of midstream packaging companies also needs to gain an advantage in the cycle and cost of upstream chip supply.
The large-scale rapid expansion of packaging companies has brought about a rapid expansion of packaging capacity this year, and chip companies have been subjected to a profound lesson of oversupply in the previous two years, and the response has generally been half full, and the time required for chip expansion has been long. At present, the capacity of chip companies has been unable to meet the needs of midstream packaging. All these changes are particularly evident in the first half of this year.
The domestic LED industry was mainly concentrated in the packaging process. Because of its low technical threshold and relatively small investment, it is in line with the basic situation of domestic enterprises, and packaging enterprises are everywhere.
At that time, the chip supply side was basically the world of Europe, the United States, Japan and South Korea, such as Cree, Osram and Taiwan's crystal power, Yuanyuan, the new century, etc., the chip profit margin is at a relatively high level.
In 2009, the situation of out-of-stock chips made domestic LED companies see the bright future of investment chips. As a result, domestic chips have also begun the first round of investment boom. At the peak, there are dozens of chip factory projects in the year. The domestic Sanan Optoelectronics and Dehao Runda also settled in Wuhu at that stage. Under the strong support of the Wuhu Municipal Government and high subsidies, both parties spent huge sums of money to purchase the key upstream production equipment of LED--MOCVD.
In the following years, a number of chip companies were completed and put into production. At this time, the downstream application side of LEDs was caught in a dilemma of growth, which led to the collapse of many chip companies that had been established in the past, and the capacity utilization of chip factories that have been put into production. Always in the low position.
According to the statistics of the High-tech LED Industry Research Institute (GLII), in 2012, the total number of MOCVD in the domestic LED industry reached 917, while the MOCVD capacity utilization rate was only about 30%, and the operating rate was only about 50%.
Turning to 2013, from the middle of the year, the downstream lighting market began to recover and demand was strong. As a result, the chip package of the upper and middle reaches has been warmed up, and the package is the first to feel this trend. In particular, white light devices for lighting were in short supply in the second half of 2013.
Expansion has become the fastest choice for packaging plants.
Since last year, domestic packaging manufacturers Hongli Optoelectronics, Guoxing Optoelectronics, Ruifeng Optoelectronics, and Mulinsen have been continually purchasing equipment, and their production capacity has almost doubled.
“As of the end of 2013, the company's packaging capacity reached 1000 KK per month. In the first half of 2014, the company has developed a production expansion plan. It is expected that by the middle of 2014, the packaging capacity will reach 1400 KK/month.†National Star Optoelectronics Secretary Liu Di is at the reception agency. Investors also said that National Star Optoelectronics is accelerating the pace of expansion.
Another packaging company "G20-LED Lighting Summit member company" - Ruifeng Optoelectronics also said that LED lighting packaging orders will be discharged until the end of this year, the company has been expanding production to cope with insufficient capacity; the current company's lighting packaging monthly capacity is about 500kk -600kk, SMD SMD LED expansion project will be completed by the end of the year.
At the same time, with the gradual improvement of the technology of extending chips at home and abroad, domestic chips have been increasingly recognized by domestic packaging companies.
“Indoor lighting, commercial lighting, and the replacement speed of chip localization are very fast.†Li Guoping, chairman of Hongli Optoelectronics, said that 80% of the chips were purchased from Taiwan or foreign brands three or four years ago, and now 90% of them start. Purchase domestic chips. Our customers are now accepting, even proactively saying: Can you use a chip from a certain domestic brand?
At the other end, due to the huge investment in chip expansion, chip companies generally need to raise funds to purchase equipment through additional issuance, etc., which takes more time, even if it is not bad money, from the development of production expansion plans to procurement of equipment, equipment Import, installation and commissioning to the final mass production. It is not difficult to complete in one year.
This creates a huge time gap, and the expanding package capacity and the existing chip capacity have a mismatch. As a result, the supply and demand relationship of the chip has quietly changed.
In the current period of rapid outbreak in the downstream, the demand for devices from lighting companies is expanding. For packagers, whoever can get the most cost-effective devices in time can occupy a larger market share. The battle for chips has also gradually heated up.
Therefore, it is not difficult to understand that the chip package "marriage" spread. On the one hand, chip companies need to use this round of market upswing to digest future production capacity; on the other hand, the capacity expansion of midstream packaging companies also needs to gain an advantage in the cycle and cost of upstream chip supply.
Dongguan Guancheng Precision Plastic Manufacturing Co., Ltd. , http://www.dpowerchargers.com