In 2012, the total LED chip GDP in chinese mainland is 7.2 billion.
Under the affect of price of going down, the GDP only increase 20% while the production increase 80%.
Among them, the chinese local enterprise only increased 6%, which is 5.1 billion.
Except those new and retreat from the industry, 13 companies increased the GDP which take 37%; On the other side, 22 companies decreased which take 63%.
Most of the companies whose GDP decreased because the fast-going-down-price. It is showed that, in 2012, the price continued going down, the averate rate is 32%, some even reach 50%.
2-poles phenomenon gradually happened.
In 2011, the qty of chinese mainland local enterprise is 35. There are 18 whose GDP below 0.1 billion and takes 51%. In 2012, local enterprise is 36, there are 23 companies whose GDP below 0.1 billion, who takes up to 64%.
In 2012, the leading 5 enterprises’ total GDP is 55%, increased 4.2% compared to 2011. The average enterprises GDP which over 0.1 billion is 0.35billion, increase 35% compared to 2011.
The industry integration is started.
Industry consolidation has started
M & A move of the two LED chip enterprises in mainland China in 2012 declared that the war has begun upstream LED chip industry consolidation.
November 13, 2012, three optical issued a public notice to be self-financing is not more than 2.352 billion Taiwan dollars (about 506 million yuan) Subscription Formosa Epitaxy photoelectric issued in a private placement of not more than 1.2 billion shares of common stock. After the completion of the transaction, three optical Formosa Epitaxy photoelectric held approximately 19.9% ??of the shares, Formosa Epitaxy photoelectric largest shareholder. February 19, 2013, the relevant departments of China Taiwan region confirmed to have received Sanan Optoelectronics shares of Formosa Epitaxy photoelectric investment case.