SMD LED developed rapidly in this market

SMD LED (Includes 5050 SMD LED, 3014 SMD LED, Side View LED, 2016 SMD LED ect) is a new type of surface mount semiconductor light emitting device. It has the advantages of small size, large scattering angle, good uniformity of light emission, high reliability, and various colors including white light. Therefore, it is widely used in various electronic products. SMD LED products have greater room for brightness enhancement and cost reduction at the upstream chip end than other LED products, and have a greater market demand in downstream applications, particularly in large-size LED backlights and LED lighting

SMD LED has developed rapidly, but it is relatively small in the packaging industry

From a global perspective, China’s packaging output in Taiwan ranks first in the world (above 60% in the world). Major companies include Yiguang, Guangbao, Guanglei, Yihong, Hongqi, etc., with clear division of labor in the middle and lower reaches of the industry, and supply and sales of industrial chains. Stability, especially after packaging manufacturing is transferred to the mainland, has a more competitive production cost. It is expected that in the next 5-10 years, the Pearl River Delta, Yangtze River Delta, Fujian and other regions will become the world's LED packaging center.

LED packaging continues to thrive, but the market share of SMD LED only accounts for a small part of China's LED packaging industry, sales in 2007 was only 10% to 15%. In the past five years, when the output and sales of the entire LED industry has increased by 30% and 20% respectively, the growth of the SMD LED industry is still very slow relative to the entire industry. 

However, Judging from the mainland market, the domestic SMD LED market was almost completely occupied by suppliers from the United States, Japan, South Korea and Taiwan several years ago. Although foreign manufacturers still occupy most of the market share, since the SMD LED products of Foshan Guoxing Optoelectronics Technology Co., Ltd. were put into operation in 2000, local suppliers in China have grown rapidly. Currently, there are already 20 to 30 suppliers in the industry, most of which are concentrated in Shenzhen, Dongguan, Guangzhou and Foshan in Guangdong, and a few are located in Jiangsu, Zhejiang, and Fujian. Leading companies in the industry include Foshan Guoxing Optoelectronics, Guangdong Hongli Optoelectronics, Shenzhen Ruifeng Optoelectronics, Jiangsu Wenrun Optoelectronics and Jiaguang Electronics.