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Chinese LED chip market’s industrial concentration continues upward climb with San’an Opto and Epistar making up more than half the market
San’an Opto and Epistar’s combined LED chip market share in China is about 51%, according to data compiled by LEDinside. San’an Opto’s revenue share constitutes more than 40% of Chinese manufacturers’total revenue, while Epistar’s LED chip revenue is a staggering 80% of imported Taiwanese LED chips in China.
Manufacturers continue to encounter difficulties in raising profitability, with many small to mid-sized manufacturers caving under financing pressure. Some small to mid-sized manufacturers have exited the market, due to difficulties in maintaining client relationships, and lack of technological breakthroughs. San’an Opto, a representative of large manufacturers, is currently actively expanding production capacity. Accompanying industry developments, Chinese LED chip market’s industrial concentration will continue to rise.
LED chips are a principal component in LED packaging, and are playing an increasingly important role. Other technical innovations in auxiliary materials including lead frame (EMC/PCT lead frame), phosphor powder (remote phosphor) and adhesives have also significantly impacted LED package industry’s technological developments. In addition, market observations clearly indicate the emergence of Chinese package auxiliary material manufacturers, with rapidly expanding market shares.
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