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Although China has long been the world's largest production and manufacturing base for LED displays, the huge output and scale does not mean that it is a well-deserved “top leader”. Due to the lack of cutting-edge technology in the core and industry, it is only based on cost and policy advantages. The fast-growing Chinese LED display industry is not confident enough about the “first” title.
However, with the emergence and strong rise of small-pitch LED products, China's LED display technology has been unknowingly leading. Moreover, with the recent upstream LED chip, LED packaging and other industrial chains showing the trend of latecomers, China's LED display industry now has completely independent technology and world-renowned brands. There is no doubt that the future will be the era when China's LED display industry is the leader and shines.
The early industrial chain has a complete foundation and only owes technology to the "east wind"
In the early days, China's LED display industry upstream packaging and chip field development is relatively slow, especially the upstream raw material LED chips rely on imports, the pricing power is mastered by foreign companies, product prices remain high. At that time, China's overall lack of "core", the government to support the development of chip companies with huge subsidies, and even lead to excessive competition in upstream chips, oversupply. However, it is precisely under the policy inclination that the LED chip industry is developing rapidly. In 2017, benefiting from the expansion of downstream application demand and the further increase of industry concentration, the domestic LED chip companies have a good revenue, and the industry frontier enterprises are more high-gross. The attitude of interest rate and market share quickly accumulates capital, preparing for expansion and layout of emerging technologies.
The situation in the middle of the package is relatively optimistic. In the initial stage of development, the packaging industry has won a lot of capital favors with environmental protection and low technical content. However, at that time, most of the production equipment relied on foreign imports, and domestic manufacturers still needed to pay large equipment costs. However, these do not hinder the rapid development of the packaging industry. According to relevant data, in 2015, China's packaging output value reached 21%, ranking first in the world. In 2016, this figure rose to 70%, and domestic packaging companies also went smoothly. Enter the top five in the world. It is not difficult to see that the rise of the domestic packaging industry has become a fixed trend.
In the downstream LED display, after years of development, China's production or market share is unparalleled in the world's first country. As early as 2010, the total output value of China's LED display market reached 18.5 billion yuan, accounting for 83% of the world's display market. It is the first country with a well-deserved LED display. However, the early domestic industry lacked the ability to innovate, mostly based on conventional products, and achieved rapid development due to cost and policy advantages, forming a complete industrial chain and a large scale in the upper, middle and lower reaches, while the core competitiveness was lower.
Small distances all the way, the domestic industry grasps the technical "discourse power"
Some insiders believe that since the birth of small-pitch products in 2012 and the strong development trend in recent years, China's LED display industry has gradually opened up competitors in all directions and become a true world leader. Indeed, small-pitch products have high requirements for the technology and production of research and development, and its birth is also promoting the innovation and upgrading of products in the whole industry. Such a historic product, first developed and developed by China, is tantamount to grasping the opportunities of future industry development and gaining the right to speak in the future industry.
At the Guangzhou International LED Show this year, there was an LED display with a minimum dot spacing of 0.9. At the US infocomm exhibition some time ago, the LED display with a minimum spacing of 0.7 was also produced by Chinese companies. It is reported that the enterprises that focus on small-pitch products in China now have the ability to mass-produce P1 and even P0.9 products, and truly realize the surpassing of other competitors from the technical reserve. In terms of the market, as the first region to launch small-pitch, China has occupied more than 60% of the world's small-pitch market. Domestic companies have also made a lot of profits. From the results of the first half of 2017, LED display companies listed in the first half of the year, the main focus on small-interval areas, the revenue situation is quite eye-catching.
Moreover, the increasing number of companies joining the small-pitch field will inevitably lower the price of the small-pitch market, which in turn will promote the growth of small-pitch demand. It is reported that the current market trend of small-pitch LEDs instead of DLP and other splicing screens is in full swing, and currently only replaces about 20%. In the future, small-pitch products will have much to offer in the indoor large-screen market. It can be seen that under the strong trend of small-pitch market, the influence of China's LED display industry on the global scale will be further expanded.
The old-fashioned regional industry is weak, and the rise of China's industry is a foregone conclusion.
Compared with the steady development of the domestic LED display industry, the development of the old-fashioned regions such as Europe, America, Japan, Taiwan and Korea, which have occupied the leading position in the past, is on the decline. According to statistics, in 2016, the output value of LED components in various regions of the world (including LED chip, die, package, module) totaled 17 billion US dollars, the annual output value of mainland China increased by 18%, and the European region increased by 7%. The South Korean region experienced the largest recession, with a 13% annual decline, a 12% decline in Japan, and a 2% annual decline in Taiwan. It is expected that the output value of China's mainland region will surpass that of Taiwan in 2017, and it will become the global leader in the leading value of LED components.
Compared with the domestic LED environment, other regions are showing signs of languishing. For example, Taiwan's market share in the Chinese market is declining year by year. In 2016, the market share of chips was only 22%, while that of mainland China was increased to 76%. Judging from the international status, China's chip industry has also entered the second echelon from the third echelon. It is undeniable that international manufacturers in the chip field still dominate by virtue of their technological advantages. However, as the integration speed of domestic LED chips accelerates, the strength of leading enterprises in the industry will be further enhanced and their influence in the world will be strengthened.
In addition, with the continuous development of China's “One Belt, One Road” policy and the advancement of China's smart manufacturing strategy, domestic LED screen enterprises will accelerate the penetration of developing countries' markets, with high-tech, high-performance, high-margin products with small spacing. Breakthrough points to expand market share in developed countries. Therefore, in the future world LED display stage, China will appear on the scene and become a unique king.