The Micro LED market is gradually fermenting, and the expansion of the chip end is back to normal track. In 2018, the supply and demand of the industry both increased compared to 2017, and the overall supply and demand of 18H1 is relatively balanced. From the demand side, the lighting market is still the main force for the growth of the LED market, and it is expected to sustain rapid growth; the mini/micro LED market is gradually fermenting and is expected to open up the LED market space, and it is recommended to continue to focus on breakthroughs in core processes and the pace of mass production. From the supply side, there are still many ways to make LED chips. The efficiency gaps between different manufacturers are relatively large. We expect that prices will remain orderly in the industry with a relatively orderly increase in production capacity, which is conducive to leading the industry. The patent litigation between Veeco, AMEC and SGL reached a settlement and the progress of chip-side capacity expansion returned to normal.
Global LED Business Operation Overview
The global LED industry maintained its single-digit growth. The total revenue of major LED companies (including Cree, Jingdian, Everlight, Seoul Semiconductor and Sanan Optoelectronics) reached US$1.396 billion in 3Q17, an increase of 4.72% year-on-year. In January, Taiwan’s LED major companies realized total revenue of NT$7.496 billion, an increase of 3.67% quarter-over-quarter and an increase of 2.16% year-on-year. Affected by the low season and long lunar new year holidays, the monthly shipments of Jingdian and Guangding decreased in January. Taiwan’s LED chips Monthly revenue of lighting companies decreased by 1.90% and 36.94% month-on-month, respectively. The structural adjustment of downstream packaging leading Everlight products achieved remarkable results. In January, LED packaging companies in Taiwan reported a monthly revenue increase of 11%.
Industry chain dynamic tracking
On the chip side: Patent litigation between Veeco, AMEC, and SGL reached a settlement. According to the research, the prices of mainstream chips in the first quarter have stabilized and will remain in order. Package end + application end: Sanan Optoelectronics and Samsung signed the Micro LED prepayment agreement. Samsung and Wanda Films unveiled China's first LED film screen, and LED bulbs and package prices remained stable in January.
Monthly Market Performance: LED Forum Bottoming Bounce
Last month, the Shanghai Composite Index fell by 6.00% month-on-month. China's Veeco, China Microelectronics, and SGL Carbon have reached a settlement. The mainland LED sector rebounded, and LED chips, LED packaging, LED lighting and LED display panels rose. 10.16%, 3.92%, 2.48%, and 10.94% of the total domestic LED companies have risen, of which Huacan Optoelectronics has the highest increase, reaching 31.5%.
It is recommended to pay attention to LED chip faucets Sanan Optoelectronics and Huacan Optoelectronics, LED small-pitch package leader Guoxing Optoelectronics, and Ruifeng Optoelectronics, a leading company in the packaging field, with LED small-diameter display leading Leader and Chau Ming Technology.