Land Plant Bargain LED Lighting Blue Ocean Red Sea

The LED lighting driver IC market has maintained its glory for only 1 year under the fierce price competition of mainland Chinese manufacturers. It turned into a “killing battlefield” last year, and actively supported the first wave of the semiconductor industry in mainland China. .

After the lighting diode (LED) lighting market grew less than expected in successive years, the market demand finally broke out in 2013. Market development is beyond the expectation of many domestic chip makers.

Deeply cultivating F-Angpo in the Chinese mainland market, due to take off the booming demand in the LED lighting market, the company's operations in 2013 have risen to a record high, with revenue and profit sharing a record high.

In contrast, the domestic power management wafer factory missed business opportunities due to the missed LED lighting market. The operation continued to suffer from the shrinking of the PC and notebook computer market, and revenue and profitability were facing downward pressure.

In a long period of time, F-Angpo climbed to RMB12.81 per share in 2013, surpassing the domestic equivalent of RMB 9.25 for the leading IC factory.

With the ban on incandescent bulbs in mainland China and the United States, the industry is generally optimistic that the LED lighting market is expected to maintain a high growth rate, attracting domestic companies including Lifan, Zhixin, and Accumulation to rush in, hoping to bring new growth to the operation. kinetic energy.

The industry originally foresaw that as the domestic manufacturers have increased their efforts to attack the market, the market competition will intensify. Last year, LED lighting driver IC product prices may be loosened; however, the industry still believes that the market is still profitable.

F-Angpo once stated that each product market will experience price competition and related measures will be implemented internally; F-Angpo believes that LED lighting chips have high customization requirements, and the market has certain barriers to entry. It is not competitive with the market. worry.

Only in addition to the Taiwan factory's active rush, the Chinese mainland manufacturers Jing Feng Mingyuan and China Resources Weiwei, etc., grabbed the market at ultra-low prices. According to industry experts, some products cost only RMB 0.7 to 0.8 yuan per wafer, which is not cost-effective. Market competition is more intense than expected.

F-Angpo is unwilling to follow up the bargaining competition, and the growth of its performance has obviously slowed down. The legal person expects that the performance of LED lighting driver ICs of F-Angpo last year will only grow by single digits, and the proportion of products will also drop to about 15%.

Accumulation of LED lighting product performance is also not as expected, the proportion of products failed to reach the original target of 15%, only to maintain about 1 percent.

Looking ahead, the industry is optimistic that this year's LED lighting market is expected to continue growing, but the market price competition will remain fierce. The industry believes that only when the Taiwan factory develops toward the niche market, can it get rid of the low-price competition impact of mainland Chinese manufacturers.

Accumulation is to adopt a strategy that spans wafers, modules, and system products. This year, it continues to target 15% of its products.