Rising LED Penetration Rates Benefit Upstream and Downstream Manufacturers

News Source: 
Shanxi Securities (山西證券)

The LED industry has entered into a period where penetration rate is rapidly increasing each quarter. Consumers continue to purchase traditional lighting products in large volumes, but distributors have begun reducing the proportion of products for sale. Manufacturers are facing saturated orders and rising lighting order visibility.

Yankon Lighting Channel strength is rooted in downstream channels 

Yankon Lighting has long established effective market coverage and market share network internationally and in China, creating various types of channel strategies. Advancing technology and growing product portfolio over the past few years has helped the company maintain strong market growth in Asia, Europe, North America, and China, where their market position continues to rise. Long term cooperation with Philips Lighting has given Yankon Lighting advantage in clientele. The company is currently aggressively developing strategies for the electronics sector to complete its market channels. 

San’an Opto to benefit from economies of scale as the LED chip industry becomes an oligopoly

Manufacturers in the LED industry have begun to diversify. Industry leaders such as San’an Optoelectronics (San’an Opto) have constantly reached maximum production and sales. Manufacturers with low production capacity and poor quality products are being absorbed by larger manufacturers or forced to shut down, marking the start of the trend in mergers and acquisitions within the industry. The recent merger of Epistar and FOREPI shows the industry moving into an oligopoly era. With the addition of FOREPI’s MOCVD equipment, Epistar has a total of 500 units and San’an Opto has around 150 units. HC SemiTek currently has around 70 units and is continuing to expand. As the future concentration of the market continues to increase, the scale effect within the industry will become increasingly more noticeable.

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