2014 Chinese LED chip market rose 30%

IHS's report predicts that 2014 is an optimistic year for China's LED market. LED chip revenue will increase by 36.6% to 1.475 billion yuan, and packaged LED revenue will increase by 14.8% to 4.812 billion US dollars. IHS also expects that in the near future, the status of Chinese suppliers in the international market will increase.

IHS said that currently China's largest LED company, Sanan Optoelectronics, has a production share of more than 30% nationwide and is still expanding its production capacity. As a new capacity expansion plan, it has now entered the second phase of the Wuhu project.

Its largest competitor, Epistar, will directly compete this year for its wafer production leadership.

At the same time, Mulinsen was evaluated as the largest LED packaging company in China in 2013. Among thousands of other Chinese competitors, Mulinsen holds more than 9% market share.

Since 2013, lighting has been the main driving force for the growth of China's LED market, and LED lighting is expected to occupy more than 50% of market share in all LED applications this year. Due to the gradual acceptance of LED instead of copper tube lamps, the declining cost of LED general lighting, the continued economic growth, and the gradual elimination of incandescent lamps, the popularity of LED lamps in China has increased.

The backlight market for LED chips increased by 74% in 2013 compared to 2012. It is expected that with the advancement of technology, the market share of Chinese companies will continue to grow through the substitution of imported products from Taiwan and South Korea.

IHS pointed out that although the Chinese market is very large, most of the Chinese LED companies still have very low international sales, and they are catching up quickly. Larger companies are developing their own brands, and IHS expects that in the near future, the status of Chinese suppliers in the international market will increase.