LED industry is trapped in the "Red Sea" battlefield LED factory facing consolidation and elimination

LED industry supply is too difficult to solve, China's mainland and international LED manufacturers to fight the price competition to make the LED industry into the "Red Sea" battlefield, LED factories are also facing consolidation and elimination, Nichia's estimate, 2016 LED market is about 5% micro Growth, China and Europe will continue to be depressed next year, LED factory purchases and activities will be more and more, but Nichia has no plans to purchase, for the mainland Sands Group to buy Philips Lumileds case, Nichia also believes that this merger The case is hard to come true.

The mainland LED factory relied on government subsidies to expand production, and the market demand was sluggish, which made the LED industry fall into the predicament of oversupply. The mainland and international big companies fought price wars, which led to the LED market becoming the "Red Sea battlefield" this year. In 2016, the LED factory will be eliminated and consolidated.

Nichia said that in 2016, the overall LED market will grow by about 5%, but next year China and Europe will continue to be in a downturn, and there will be more and more mergers and acquisitions. Nichia has no plans to buy and sell; Continuous research and development of innovative technologies. For a long time, the company has invested a lot of resources in technology development, upgrading the standardization of existing products, and increasing the competitiveness of prices with scale benefits, so as not to fall into price wars.

For China Sands Group's acquisition of Philips' Lumileds, Nichia said that the case is currently blocked by the US government. Although Philips said it will continue to communicate with the US government, Nichia has concluded that the case is difficult to come true.

As for the issue of the patent lawsuit with Yiguang, Akutagawa said that the two sides did not have full trust, but gradually drifted away, and there was no chance of reconciliation in the short term. The LED industry is moving toward a "high" degree, and can no longer win by imitation. It is necessary to invest in higher research and development funds and technology before it can open up a sky in the market.

In response to market demand, Nichia has developed a new Flip-Chip LED technology called "Direct Mountable Chip" in March this year, and has started mass production in October, and will introduce lighting in the future. And LCD applications, it is estimated that next year's mass production scale will reach three times this year.