Local industry crisis of the post-crisis period
Industry consolidation, mergers and acquisitions and restructuring are the market behavior. But in the shorter cycle, so intensive penetration of China’s semiconductor LED industry are the first time to appear.
The dense infiltrate behind reflects the plight of the current development of China’s semiconductor industry, and that too much emphasis on the low end of the scale of the development of the situation, and will eventually be replaced by more innovative strength pattern.
Over the years, with the huge market demanded, China will soon become the world’s largest semiconductor market. Local semiconductor LED industry, from the beginning of the last century, has experienced rapid growth of nearly 8 years since 2000 (an average annual growth rate of more than 30%). They have a complete industrial chain in the design, manufacturing, packaging and testing. Moreover, each of the sessions have a large number of enterprise groups.
For example, semiconductor design companies in China had reached a maximum of 500. Manufacturing companies from 2006 to 2007 planning project has reached 20. Relatively strong packaging and testing LED lights industry, there are Changjiang Electronics Technology, through rich micro electric Huatian nearly 10 enterprises.
To Embarrassment, the output value of each link, are not as large-scale overseas with the aspects of an enterprise. For example, 500 design enterprises output value is not as good as had Mediate ranked 10 in the world, all OEM enterprise output value is not as good as TSMC, ASE. All packaging and testing enterprise value is inferior.
The financial crisis tender this situation. Chinese Academy of Engineering, said Xu Juyan, continent of the world’s fastest growing market in 2007, after the onset of the crisis, has become the fastest growing area of the global rate of decline. In 2008, China’s semiconductor LED industry for the first time emerge a the historic negative growth.
“In this way, the integration process is inevitably important scale corporate body is more important.” The Xu Juyan on the “First Financial Daily” said, operators need to enhance physique like SMIC, shifted from the pursuit of scale to the pursuit of profit.
Gu Wenjun said that the current market demand are larger than the production capacity, and that transfer capacity of foreign-funded enterprises in China. It is natural to use the capital, direct acquisition of better factories time.