[테크월드=이나리 기자] After narrowly missing out on entering IHS Markit’s top 10 for 2016 and the first quarter (Q1) of 2017, Nationstar has broken into the top 10 packaged LED rankings for the second quarter (Q2) of 2017, according to the latest IHS Markit LED Supply & Demand Market Tracker.
The company, located in Foshan in Guangdong province in southern China near Guangzhou, Shenzhen and Hong Kong, recorded packaged LED revenues of $112 million for Q2. Nationstar, whose primary markets are lighting and signage, grew 48 percent compared to Q1. While strong Q2 growth is common from Chinese companies, given the low first quarter due to Chinese New Year, Nationstar’s Q2 2017 revenue was also 48 percent above Q2 2016. It now appears likely that Nationstar will also finish the full year 2017 inside the top 10.
MLS growth fueled by lighting and signage
Nationstar joins MLS in the top 10, which was the first company from mainland China to enter the top 10 in 2013. After its very strong 2013, MLS saw only modest growth from 2013 to 2015, but grew very strongly in 2016 to reach a new high of sixth place. Like Nationstar, MLS does not have much business in backlighting or automotive, but is seeing growth fueled by lighting and signage sales. In Q2 2017, it recorded $247 million in revenue, and was ranked fourth.
MLS’s 2017 revenue is now set to roughly double its 2013 revenue. Furthermore, it has a chance this year to become only the fifth supplier in history to achieve $1 billion in packaged LED sales in a single year, the others being Nichia, Osram Opto, Lumileds, and Samsung.
The rise of Chinese companies in the LED market
In addition to MLS and Nationstar, many other players are active in China. Hongli, Jufei, Shenzhen MTC and Refond are estimated to be the next largest. There are also many smaller LED suppliers in China.
The rise of Chinese vendors in the LED market is not limited to the LED vendors themselves. This year, MOCVD -- a key tool needed to produce LEDs -- suppliers AMEC and TOPEC have seen a sharp increase in sales to become the first companies to seriously challenge the longstanding dominance of Germany-based Aixtron and US-based Veeco. The latest IHS Markit quarterly report tracking the LED market, published in September, also includes the MOCVD rankings and shares for 2016 and 2017 (annual and quarterly).
New production equipment continues to be added in China, showing that the Chinese competition is here for the long term and will continue to grow in the future.
The threat to others
Many Western and Japanese LED companies do not yet encounter Nationstar as a major competitor, because most of its sales are within China. However, the rise of Chinese companies is, in general, making the competitive environment tougher for other suppliers that are struggling to match the low pricing in lighting and other applications.
Western, South Korean and other vendors are now increasingly looking to alternative markets such as automotive, horticulture and UV LEDs. Alternatively, Tier-1 vendors are able to differentiate themselves with intellectual property, product quality or specific technology (such as chip scale packaging).
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