1. LED packaging development status and scale analysis
After years of development, China's LED packaging industry has become mature. In recent years, LED packaging companies have actively been listed on the market. With the help of the continued growth of demand in the capital market and downstream application industries, the expansion of corporate scale has accelerated, production capacity has grown rapidly, and the scale of the domestic LED packaging industry has continued to expand. Domestic LED packaging output value is also increasing year by year and has developed rapidly. The rapid growth in output value of the domestic LED packaging industry is partly due to the fact that most international LED packaging manufacturers are optimistic about China's domestic application market and have set up production bases in China to increase domestic industry sales. Domestic companies have expanded their production capacity and released their invested capacity. On the other hand, domestic LED packaging manufacturers are also constantly improving, making great progress in technology, patents and markets, and further expanding their production capacity. China is transforming from a packaging power to a packaging power.
After years of fierce competition, the domestic LED packaging market has matured. The competitiveness of a number of leading domestic packaging companies has continued to increase, and their scale has continued to expand. In terms of domestic market competitiveness and independent intellectual property rights, they are no less than LED packaging companies abroad and in Taiwan. In terms of packaging alone, domestic companies already have the same strength as international LED companies.
Looking back at the development history of LED packaging in recent years, as the application scope of LED products continues to expand, its output value and market size are increasing year by year and maintaining a certain growth rate. It is expected that in the next few years, LED packaging will maintain a certain growth rate and occupy more market share.
The field of LED packaging will also move towards a situation where the strong will always be strong, and the acquisitions of large-scale packaging companies are also continuing to ferment. According to relevant domestic statistics, there are more than 1,000 LED packaging companies in my country. The output value is mainly distributed in the range of tens of millions of yuan, with a minority of companies reaching more than 100 million yuan. In the field of LED display packaging, dozens of medium-sized and above-sized companies occupy the vast majority of the market share. Small and medium-sized enterprises can only survive in the cracks and are in a rather embarrassing situation. Those with certain capabilities want to expand production, but expansion is facing financial pressure. If they do not expand production, it will be difficult to match the cost scale of large manufacturers; in professional subdivisions, the future development trend is not clear, and more professional and technical talents and financial strength are needed. To this extent, the situation of small and medium-sized enterprises is very difficult.
Due to the low entry threshold for packaging, a large amount of capital was attracted in the early stages of industry development, and the packaging industry formed a small and scattered pattern. To a certain extent, the market was once in a period of chaotic development. However, in recent years, as the LED display industry continues to mature, in the process of survival of the fittest in the market, a number of small-scale companies with uneven product quality will be eliminated. The LED packaging industry is expected to move towards a healthy development stage.
As far as the current mature packaging industry is concerned, there is not much difference in technology between various domestic LED packaging companies. The only differences are the production capacity scale of the companies, the consistency between product batches, and product reliability. As manufacturers with financial strength and technical strength continue to expand their scale and increase R&D investment, the hierarchy among domestic LED packaging companies will gradually take shape, and the living space of small packaging companies will be compressed to a certain extent.
From the perspective of the LED display industry chain structure, the core components from upstream to downstream mainly include RGB three-color optical chips, full-color packaging devices, driver ICs, multi-layer PCB boards, cabinet kits, display cards (sending cards/receiving cards) and video control systems, etc., involving many related companies.
Among all components, the highest cost proportion is the packaged device, that is, the lamp bead. Depending on the product spacing specifications, the lamp bead can account for from 20% to 70% of the total cost. Especially now that the development of small-pitch displays is booming, more lamp beads are required per square meter, and the cost of lamp beads accounts for the vast majority of the cost of small-pitch displays. Taking conventional displays for indoor and outdoor use as an example, LED packaging devices account for 28% of the overall cost of the display and are the absolute majority of the cost of LED displays.
2. Regional distribution and downstream application analysis of LED packaging devices
Domestic packaging companies have the advantage of a complete and concentrated industrial chain in terms of regional distribution, forming a complete LED packaging industry chain. Depending on the characteristics of China's economic layout, Chinese LED companies are mainly concentrated in the Pearl River Delta, Yangtze River Delta, Fujian and Jiangxi regions, and the Bohai Rim Economic Circle, forming four major gathering areas. The Pearl River Delta region is the region with the largest concentration of LED packaging companies in mainland China and the largest packaging industry. The number of companies exceeds two-thirds of the country, accounting for 58% of the total number of companies in the country. In addition to a slight lack of upstream LED epitaxial chips, it has gathered many packaging materials and packaging equipment manufacturers and agents, and has the most complete supporting facilities. Followed by the Yangtze River Delta region, the number of enterprises accounts for about 17% of the country's total.
Take the Pearl River Delta region as an example. Shenzhen is the area where LED optoelectronic companies are most concentrated, and it is also where packaging companies are concentrated. Relying on its unique geographical and industrial advantages, Shenzhen has the most related supporting companies, and the industrial agglomeration effect is quite obvious.
As an important link in the LED industry chain, LED packaging devices are constantly innovating and surpassing during the development process, and have made great improvements in packaging form and technology. Its downstream applications are also becoming more and more extensive, with LED lighting, LED display screens and LED backlights being the most concentrated application areas. Among them, LED lighting applications account for about 33%; LED display screens account for about 25%; LED backlights account for about 21%; other applications account for an even ratio.
ANNA