In July, PCB manufacturers began to issue price increase notices, leading to the rising purchase cost of LED raw materials. Recently, LED display companies have also issued price increase notices.The analysis shows that the LED upstream industry chain PCB industry has entered the peak season one after another, and the price of PCB products is expected to go higher, which will form a strong support for LED display.The second half of the year is also the traditional peak season for the LED display industry. The huge market demand in the downstream is about to be released, especially the expansion of small-spacing display application is expected to usher in a new round of outbreak of the LED industry.
The LED industry, as a market space of hundreds of billions of yuan in the market scale of semiconductor and pan-semiconductor, has good track effect and provides good soil for the growth of excellent companies.China's LED industry has begun to take shape in the field of chip and packaging testing, and the market power and pricing power can guarantee the company's market share and business gross margin.
The demand and market size of LED general lighting industry continue to grow, and the development speed of the Chinese market is more prominent.According to CSA data, the scale of general lighting market in China was 212.3 billion yuan in 2017, up 21% year on year. Compared with 2009, it was 7.8 billion yuan, up 27 times, and CAGR=39%, which was the fastest growing field in the whole LED industry chain.In the future, with the continuous improvement of LED lighting penetration rate, the industry demand will continue to grow, among which home and commercial lighting are the main driving forces.
From the local comparison of the upstream and downstream of the disclosed semi-annual report industry, the median year-on-year growth rate of the downstream Led application terminal was 63.28%, the median year-on-year growth rate of the mid-stream packaging was 36.05%, and the median growth rate of the upstream chip was 35%, as well as the sequential trend.However, in terms of performance contribution, the government subsidy of upstream was 1.66 billion, higher than that of the middle and lower reaches of 0.05 billion, and the actual growth rate of upstream was lower than the above range.The downstream benefits from the continuous penetration of small spacing, strong orders of landscape lighting, as well as new business models and other businesses and channels, and the follow-up continuity is good. Therefore, it can be judged that the downstream application of LED is better than that of the upstream chip.