In the first half of the year, the LED industry was strong in the third quarter with a “price boom” to start the second half of the market. So, what new opportunities and new trends will the LED industry present in the second half of the year?

The High-tech Research Institute LED Research Institute (GGII) believes that the global LED industry is entering the development cycle dominated by “Chinese companies”. On the one hand, the pattern of China's local LED industry has basically taken shape, and the performance growth and capacity expansion of a number of leading enterprises in the middle and lower reaches have entered a new stage.

In particular, the strong power of China's capital market has pushed China's LED companies to quickly squeeze the global market share by means of mergers and acquisitions, and formed a counterbalance between traditional multinational giants.

In the second half of the year, the LED industry is still facing greater opportunities, and of course risks coexist. On the one hand, technological innovation is still evolving rapidly, and the maturity of new technologies such as CSP is accelerating. The new application market represented by infrared, ultraviolet and headlights is starting. On the other hand, there will be new trends in mergers and acquisitions around capital and integration.

Starting from this issue, Gaogong LED will use the third phase of the content to show the top ten trends of the LED industry in the second half of the year.

Intelligent manufacturing into the deep water area

From the perspective of the development trend of global intelligent manufacturing, the industry 4.0 dominated by smart manufacturing has not really come. The Industrial 3.0 era is not in the past. It has continued from the 1970s to the present, and it is the process of replacing human operations with robots. China is currently in the 2.5 era, because China is still far from the popularity of robots.

According to data from the Higher Industrial Research Institute, in 2015, the global smart manufacturing market reached 3.57 trillion yuan, and is expected to reach 4.11 trillion yuan in 2016, an increase of 15.37% year-on-year. It is expected to reach 6.34 trillion yuan in 2020.

However, the growth rate will decline year by year. The growth rate in 2015 was 17.43%, and the growth rate in 2016 is expected to be 15.13%, and it is estimated to fall to 8.75% by 2020. “The slowdown in growth means that the reform of smart manufacturing will enter the deep water area. Many problems will continue to erupt and there will be many difficulties. We must prepare for this in advance.” Zhang Xiaofei said.

At present, the price trend of the short- and medium-term LED industry, especially the downstream lighting application market, is still a downward channel.

But for lighting manufacturers, the bottleneck is also very prominent. Mainly in three aspects:

First, the production efficiency is low, and most of them are labor-intensive industries. The automation of the production line equipment is low, and the production efficiency of enterprises is low;

Second, labor costs are high, and the labor costs are rising due to the aging of the population, inflation, and government policies and regulations.

Third, product accuracy and yield rate need to be improved. Enterprises rely more on manual operations, and the degree of automation is insufficient. Product accuracy and yield rate need to be improved.

But we still see the market prospects for intelligent manufacturing of LED lighting.

The first is downstream demand, LED penetration is still in a fast rising cycle, new technologies, new materials, new markets continue to emerge, the requirements for manufacturing automation will be higher and higher. In particular, the promotion of standardization has made enterprises pay more attention to automation and upgrading.

Secondly, the policy is promoted. In 2020, the sales revenue of the intelligent manufacturing equipment industry exceeded 30 billion yuan. The central and local governments vigorously promoted industrial upgrading and invested huge amounts of support and funds. In the future, lighting manufacturers above designated size will be more inclined to accelerate the promotion of factory automation through local policy support.

Third, the pattern changes. Chinese companies have accelerated the acquisition of international giants and mastered the right to speak. The Chinese market has become the world's largest intelligent manufacturing market. This will inevitably lead to a further rapid decline in the cost of current automation upgrades.

From the current industry feedback, in the second half of the year, these lighting manufacturers will gradually promote mature automation transformation programs and automate the transformation of more production lines.

Sunshine Lighting mentioned in the semi-annual report that the expansion of production capacity is not a simple increase in the number of personnel. Sunlight Lighting has effectively promoted the promotion of per capita output value, and introduced automation reforms in various types of products and various process links.

Appropriate promotion and replication of mature automation solutions has strengthened cost control and contributed to the company's overall gross profit margin improvement.

“Automation can help reduce the risk of employment, improve efficiency and improve quality. It is also the core productivity of a manufacturing enterprise.” Guan Yong, general manager of Sunlight Lighting, said that for lighting companies, automated production lines are for producers and users. There is a high demand for talents and crafts. In addition, product design and shape are required, and the technology is forward-looking.

Patent war, the last market barrier

With the continuous global expansion of Chinese LED companies, the patent issue has become more and more prominent, and it has become one of the key bottlenecks for Chinese companies to truly go abroad.

The core patents for LED midstream have always been concentrated in the hands of international giants such as Philips, Osram, Nichia, Toyota Synthetic, and Cree. At the same time, they have formed a strict patent network through mutual patent licensing.

In the past, Chinese companies applied for a small proportion of late applications. They were basically submitted after 2000, and most of them were utility models and design patents. Therefore, they have repeatedly suffered setbacks in the international market.

However, the solution to the patent problem continues to grow with the scale of Chinese companies, especially when Chinese listed companies begin to enter the peak period of overseas mergers and acquisitions. The parties with different patents, the best way to end the patent litigation to reach a compromise is to cross-authorize. This will also be one of the main trends in the next few years.

In July last year, Toyota Synthetic Japan authorized the white LED patents to two Chinese LED packaging manufacturers, Jufei Optoelectronics and Yimeixinguang, and reached a strategic cooperation in the supply chain.

Obtaining the patent license of Toyota Synthetic means that it can enter the global white LED patent network, which will open up the growth space of the company's international market, and also provide white LED patent protection for their downstream customers.

In the same month, China Electronics Information Industry Group acquired 100% equity of BridgeLux. The successful acquisition of the equity, domestic companies are equivalent to control all patent and interactive licensing of Bridgelux enterprises, can carry out vertical product integration from chip to module and development of silicon chip on GaN, master chip, epitaxial wafer, package, white light, A number of core technologies such as optical design.

These mergers and acquisitions have resulted in some manufacturers being able to obtain patent protection through maternal, subsidiary or certain joint or strategic alliances, thus finding patent breakthroughs in certain markets.

In addition, the technology of LED is still developing and improving, and the technical route is not the same. Even if some patents expire, new patents will appear, forming new technical barriers and new authorizations. This is a new opportunity for Chinese companies.

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Applications:

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Design:

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