The much-anticipated iPhone 8 is set to hit the market soon. Besides Apple's latest mobile phone, it will also feature the cutting-edge OLED full-screen display. OLED technology boasts self-illumination, wide viewing angles, near-infinite contrast ratios, low power consumption, and fast response times. As the leader in the mobile phone industry, Apple’s innovations often spark global trends. Consequently, many manufacturers are shifting their focus to OLED technology, which is gaining significant traction in the market. Recently, JD.com invested 670 million yuan to collaborate with domestic manufacturers to jointly explore OLED applications in the AR/VR field. This indicates that both industries and major corporations are keen to capitalize on the growing OLED market. The entire OLED industry chain can be divided into three segments: upstream, midstream, and downstream. The upstream includes LCD and OLED panels along with the various raw materials and components needed for module processing and assembly. The midstream encompasses OLED panel manufacturing and display module assembly. The downstream sector primarily focuses on various display products. China's industrial foundation is relatively weak, and the industrial chain is incomplete, with upstream products lacking competitive edge. Although numerous Chinese companies have entered or plan to enter the OLED field, they are mostly concentrated in downstream manufacturing. Upstream equipment and raw materials remain weak. Most Chinese OLED manufacturers are still in their infancy, and mass production remains a distant goal. The manufacturing equipment and raw materials required by Chinese OLED companies heavily rely on imports from Japan and South Korea. Currently, South Korea’s Samsung is the largest global exporter in the OLED industry. Its dominance is supported not only by its strong R&D capabilities in the display field but also by the substantial demand for downstream products like smartphones, tablets, and high-end TVs. In China’s OLED industry, there are currently no large-scale, comprehensive, and highly collaborative companies. The incomplete industrial chain directly affects the output value of China’s OLED industry. The Eight Chip Companies’ Varied Fortunes in the First Half of the Year As of August 30, with the completion of the first half of 2017 performance reports, LED chip companies including Dehao Runda, Aan Optoelectronics, Huacan Optoelectronics, Aoyang Shunchang, Silan Micro, and Ganzhao Optoelectronics have all released their interim financial reports. Based on the mid-term results of LED chip companies, the competition in the chip market during the first half of 2017 remained intense. However, the price of LED chips has continued to stabilize since the fourth quarter of last year, and the overall market has shown improvement. Gan Zhaoming, manager of Ganzhao Optoelectronics, which saw the strongest growth in net profit, stated that after the market volatility in 2015, chip prices fell, packaging factories expanded rapidly, and the national 13th Five-Year Plan for the semiconductor industry provided support. As a result, the industry fully recovered in 2016 and 2017. Additionally, the display industry’s need for narrower spacing has increased chip demand, intensifying industry development and causing a temporary chip shortage. For the chip industry trend in the second half of this year, Huo Dongming noted that product prices will stabilize, and chip companies will gradually introduce more cost-effective products, achieving a balanced production and demand state. At the beginning of 2016, the oversupply issue in the LED chip field persisted. With the shutdown of 25% of crystal power production capacity, the decrease in small plant supply, and the downstream demand driving, the supply-demand structure has gradually improved. In the second half of 2016, downstream demand drove upstream demand for LED chips, resulting in a shortage and a rebound in chip prices. This led to an increase in the growth rate of LED chips, reaching 11.54%, with a total output value of 14.5 billion. Undoubtedly, LED lighting is the primary driver of the rapid development of the LED chip market. In the future, with the small-pitch market explosion and the continuous growth in lighting market demand, the LED chip industry will continue to grow steadily. GGII predicts that the output value of China’s LED chip industry will reach 18.8 billion yuan in 2017, a year-on-year increase of 29.6%; by 2020, the output value of China’s LED chip industry will exceed 28.8 billion yuan. It is worth noting that in the second half of the year, with the gradual release of LED chip manufacturers' expansion capacity, industrial concentration will accelerate, and leading enterprises will see more prominent profitability and market share. How can the chip industry situation be addressed? Huo Dongming suggested that chip companies should increase R&D efforts, improve product performance, reduce costs, expand production capacity, deepen cooperation with downstream enterprises, and establish stable supply relationships. (click for details) Intelligentization Will Be the Future Direction for High-Power Power Supplies In recent years, related concepts like intelligence, IoT, and artificial intelligence have gained popularity, yet the reality is less than ideal. It’s no surprise that everyone is eager to attach themselves to the terms “landmark†and “outbreak phase.†In a way, this reflects the industry’s anxiety about the future of intelligence. In this regard, Zou Chaoyang, deputy general manager of Yusheng Electronics, said, “LED intelligent lighting must be the future development direction, and the degree of intelligence in lighting depends heavily on the intelligent level of LED drivers. User needs are always the industry's guiding wind vane. The future development of high-power outdoor drivers will also focus on intelligence, connectivity, standardization, and modularity.†“The future direction of high-power outdoor power supplies will inevitably be intelligent,†explained Zhang Huajian. From the perspective of lighting manufacturers, intelligent power supplies offer great convenience in lamp design, debugging, and assembly while significantly reducing maintenance costs. From the end-user perspective, intelligent power supplies diversify the functions of lamps, meeting various application requirements. In fact, although intelligent applications currently make up a small percentage, the actual application demands for intelligent power supplies are increasing. From a macro perspective, global energy utilization demands are rising. High-power lighting itself is an area with high energy demand. Implementing intelligent lighting will save more energy. As intelligent system technologies mature, power supply technologies are also advancing. The two fields have achieved stable and close cooperation, providing a feasible basis for the realization of intelligence. In the future, to address cross-industry collaboration, intelligent development will focus on unified technical standards and customized demand directions. “Actually, the basic functional requirement of lighting for power supplies is simply to accept the voltage given by the outside world. The lack of a unified standard for intelligent control systems now highlights the urgency of relevant departments issuing uniform standards,†mentioned Xin Mingfeng, general manager of Jiansen Technology. (click for details) Kaisheng Shares Now Facing Operational Crisis On August 29, informed sources reported that Guangzhou Kaisheng Electronic Technology Co., Ltd. (stock short name: Kaisheng Securities code: 837235) has ceased operations. According to reports, on August 23, 2017, the sponsors of Kaisheng Shares were informed that the company had stopped production and shut down on August 23, 2017. It was learned that Kaisheng Shares faced the following issues: 1. The company office building and factory building have been closed, and no workers are engaged in production; 2. The company has defaulted on employee wages, creating tension in labor relations; 3. There is a conflict between the company and its suppliers, and most suppliers have ceased cooperation. According to data from the Dikaibei New Board Research Institute, Kaisheng mainly engages in R&D, production, and sales of PC power supplies and LED drivers, holding a considerable market share in the field of switch-mode power supplies. Is Kaisheng Shares truly facing a business crisis as reported? To verify the authenticity of the source, the author checked relevant information about Kaisheng on the official websites of the New Third Board Online, Straight Flush, and the company itself. It has been confirmed that Xinsanban Online has removed the stock information of Kaisheng Co., Ltd., and the stock information of Kaisheng Shares on the Flushing website has also been cleared. Later, when inquiring about Kaisheng Shares on the official website of Changjiang Securities, it was surprising to find that no relevant information could be found. (click for details) Huacan Optoelectronics Invests 1 Billion to Expand LED Substrate Production Huacan Optoelectronics (300323) announced on the evening of August 25 that the company’s wholly-owned subsidiary, Lanjing Technology, and the Yuxi Hongta District Government signed a framework agreement for the annual expansion of 35 million LED substrate projects. The project is expected to have a total investment of approximately 1 billion yuan. The government aims to support enterprises, create favorable conditions for enterprise development, encourage enterprises to grow larger and stronger, and promote rapid and healthy enterprise development. Lanjing Technology plans to expand its production capacity to meet the increasing market demand and achieve growth. Upon completion, Lanjing Technology is expected to become one of the largest sapphire substrate manufacturers in the world. According to the announcement, the project location is planned to be on land owned by Party B. The land area is approximately 75 mu, and the construction period is 16 months. Construction is expected to begin in September 2017. Huacan Optoelectronics stated that the normal implementation of the project will help the company’s business expansion, further expanding its scale and cost advantages, enhancing its core competitiveness and industry influence, and is expected to have a positive impact on the company’s future performance. (click for details) Photovoltaic Bracket ,Solar Panel Bracket
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