Lighting LEDs accounted for US$3.9 billion of the US$8.8 billion Chinese LED package industry in 2015, according to the 2016 Chinese LED Chip and Package Industry Market Report by LEDinside, a division of TrendForce. Lighting LEDs’ share in the total scale of the Chinese LED package industry in 2015 also grew 15% year on year to reach 44%. MLS and Honglitronic, the two major Chinese package suppliers, have steadily expanded their market shares in the LED lighting application due to booming demand in Southeast Asia, India and other emerging markets. Consequently, their standings in the industry have gradually risen as well.
“Chinese lighting LED manufacturers are catching up with their international competitors in terms of technology and have become more competitive as a result,” said LEDinside analyst Allen Yu. “Due to their cost advantages, the Chinese package suppliers have quickly made inroads into Southeast Asia, Africa and the emerging markets. Some are also receiving orders from the larger international LED manufacturers. In sum, increasing competitiveness and overseas expansion have continuously contributed to the revenue growth of the Chinese LED package industry in the recent period.
Lightning Opto’s lighting LED revenue grew over 40% annually in 2015 to become the third-largest Chinese supplier of the product
MLS retained its top spot in the revenue ranking of Chinese lighting LED suppliers for 2015, registering only a slight year-on-year decline. “MLS continues to expand its capacity and build channels to widen its lead over other suppliers, so its position in the ranking remains very secure in the short term,” noted Yu.
Honglitronic’s boosted its position in the package market with the acquisition of Smalite and climbed to second place in the domestic lighting LED revenue ranking for 2015. As the parent company, Honglitronic has ramped up product development for lighting LEDs and added several products to the lineup, including flip-chip LED and COB LED. The subsidiary Smalite on the other hand focuses on its EMC LED business and capacity expansion. Honglitronic will also rely on its other acquisition, the lead frame supplier Lianyou, to further lower the cost of package production. On the whole, Honglitronic’s competitiveness is expected to improve significantly in the near future.
Lightning Opto is more advanced in its EMC LED technology compared with its domestic competitors and therefore has captured orders from many international LED suppliers. Despite the market headwinds, Lightning Opto in 2015 posted an annual revenue growth of over 40% for its lighting LED business and captured the third spot in the ranking.
Refond managed to maintain revenue growth for its lighting LED business during 2015, whereas its backlight LED business took a big hit in the same period. Earlier this year, Refond attracted the industry’s attention by unveiling its first range of F-EMC LEDs. These products are expected to become a new source of revenue growth in the lighting LED market during the year.
MTC has been active in both lighting and backlight markets. As MTC strengthens its position in the backlight market, the company also increases its production capacity for lighting LEDs and has won orders from international LED manufacturers. Hence, its lighting LED revenue is expected to grow significantly this year.
NationStar has concentrated much of its efforts on developing packages for LED displays, but at the same time the supplier is just as committed in its lighting LED business. NationStar’s share in China’s lighting LED revenue has seen steady annual growth.