Analysis of the Competition Pattern of China's LED Industry Market

1. Overall competition

In terms of capacity concentration, due to the fact that there are not many domestic large-scale enterprises, and SMEs dominate the main sector, the output concentration of the top ten companies in the field of epitaxial wafers is 75.4%, and the chip area is much lower, at 56.4. %, the lowest level in the display area is 45.6%. It can be seen that the higher the degree of concentration in the front-end country, the lower the number of companies in the downstream products, and the lower the concentration of production. In general, the industry concentration of LED industry in China is relatively low, while the concentration in the upstream is normal, but with the entry of many companies also face a decline.

In terms of brand concentration, as there are not many well-known brand companies in China, small brand companies occupy the main position, which makes the top ten brand concentration in the field of epitaxial wafers 72.4%, and the chip area is much lower, only 52.3%. The lowest level in the display area is 40.6%. It can be seen that similar to the concentration of production capacity, the more concentrated the front-end domestic brands are, the higher the number of downstream products is, and the lower the degree of brand concentration. In general, China's LED industry, the brand concentration is not high, the industry's overall competitiveness is low, it takes a long time to take the brand road.

In the technological competition, the field of epitaxial wafers is monopolized by several companies, and foreign entrants can hardly enter quickly. In the field of chip manufacturing, they are relatively low in technology relative barriers and coexist in multiple technologies; in the display screen manufacturing field, due to the diversity of product applications. Technology is also diversified, and its barriers are the lowest. On the whole, the field of epitaxial wafers and chips is relatively clear in the technological competition, and the display area has many technologies and products.

2. The competition pattern of enterprises in the industry

In the LED industry, the main companies in LED epitaxy and chip are: Xiamen Sanan, Dalian Lumei, Hangzhou Shilan Mingxin, Shanghai Blu-ray, Shenzhen Fangda, Shanghai Sapphire, Shandong Huaguang, and Jiangxi Lianhe. Chuang, Shenzhen Century Jingyuan, Guangzhou Puguang and Yangzhou Huaxia Integration.

In the development of the LED chip industry, early products mainly consist of ordinary brightness chips, and there are only a few manufacturers such as Nanchang Xinlei. After 2003, chip production companies represented by Xiamen Sanan and Dalian Lumei focused on high-brightness chips to meet the demand of the chip market, directly driving the rapid growth of high-brightness chip production. For a time, the domestic boom of the development of the LED chip industry, high-brightness chip has become the main driving force for the development of the LED chip industry. In 2009, China's LED chip production reached 30.93 billion, and the output value reached 1.19 billion yuan.

With the increasing number of LED chip manufacturers, the growth rate of LED chip output value has been higher than that of packaging. As a result, the chip output value continues to increase in China's LED industry output value, rising from 5.4% in 2002 to 11.3% in 2009. . It can be seen that China's LED industry is moving from the low end to the high end, and it is advancing towards a chip with higher added value and more core value.

The competitive landscape in the packaging industry is that there are a large number of companies and there are no large-scale leading enterprises; in other areas such as display manufacturing, competition is fierce, and there are many companies but few large-scale enterprises.