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The LED industry is optimistic next year. Many Taiwanese companies are worried that mainland manufacturers will be strongly supported by the government and will replace Taiwanese manufacturers, especially the midstream packaging factories with lower technology thresholds. However, mainland manufacturers still have not left the Chinese market, and the mainland LED packaging factory only supplies Chinese domestic lighting. International lighting companies that focus on quality, as well as demanding higher TV backlights, prefer Taiwanese and Korean products.
The LED packaging industry is strong and weak. The LED upstream epitaxial plant has been consolidated in the past two years, and this year, Sanan has reached its peak. Was asked if this consolidation trend extends down to the midstream packaging factory? Ye Weifu, chairman of Everlight, said that 2014 will not appear. He analyzed, mainly because the existing manufacturers are strong, weak and weak, and they are unable to play a comprehensive effect; and the investment threshold of the packaging factory is low, unlike the capital intensive of the epi-plating factory, so small The manufacturer will continue to exist next year and will be eliminated after waiting for a period of loss.
In addition, the technical threshold of packaging is also low. In recent years, mainland China has frequently digged talents. The industry is worried that Taiwanese factories will soon be replaced by the mainland.
Ye Qifu is optimistic that the entire LED industry must be competitive, it is the cooperation between upstream and downstream, not just the package segment is strong. He pointed out that there are many upstream epitaxial factories in the mainland, but there are not many strong ones. Although the mainland packaging factories have a rising trend, the current orders are limited to Chinese lighting brands, and international lighting manufacturers are still placing orders.
Even mainland TV brands such as Haier, Konka, Chuangwei, etc. use more LEDs in Taiwan and South Korea, mainly because of the higher level of backlight technology.
Taiwan’s out of differentiation, Chairman of the Board of Directors, Jian Feng, also said that Taiwan’s products have technological advantages and can make differentiated products. For example, there are three major products in the next round, which can make a clear difference with the mainland epitaxial wafer factory, including flip chip packaging, high voltage LED, and package-free chips. These new technologies save cost and have high gross margin because they do not require wire and leadframes or can replace the entire power supply with a single driver IC.