2014 LED lighting chip market can be expected

With the incandescent lamp elimination plans of various countries entering the implementation phase, the LED lighting market is further expanding. In 2014, the LED lighting chip market also benefited from this, and the market development prospects are promising.

China's customs data show that China's export of LED lighting products has grown strongly this year. Especially in the second half of the second half of the year, the monthly average was over 40%, and the speed was very obvious. The incandescent lamps below 60W have been banned from all over the world since 2014. Due to the advance distribution of goods by channels, the demand for LED alternative light sources has started to increase in the second half of 13th, which has led to the growth of the mainland export market. Under the combined effect of technological advancement, cost reduction, policy subsidies, and promotion by big manufacturers, the industry judges that LED lighting penetration in 2014 is expected to exceed expectations.

In LED lighting, the chip is an important part of the lamp, which is the basis for achieving controllable lighting. With the gradual increase in market concentration, prices are relatively stable (technology upgrades decline), the industry gradually resumed growth and the economy improved.

At the same time, with the accelerated penetration of LED lighting, the demand for LED chips will increase by 30-40% in 2014. From the supply side, the expansion of the major chip plants is more cautious, and it is expected that the effective capacity will increase by 20-30% in 2014. Therefore, industry supply and demand are expected to be better than in 2013. We believe that the profitability of the chip mainly depends on industry supply and demand, scale effect and product structure. Under the background of supply and demand, the scale effect of chipmakers such as Sanan continues to strengthen, product structure is further optimized, and its profitability will continue to improve.