With the increasing popularity of LED technology in China, China, as the world's largest lighting product production base, has experienced rapid development in the LED industry in the past few years. Since the Chinese central government subsidized metal organic chemical vapor deposition (MOCVD) equipment in 2010, a large number of new companies have entered the industry and purchased hundreds of MOCVD equipment to produce LED chips. As many companies have gone bankrupt or acquired, the companies that have survived in the same period have become bigger and stronger, playing an increasingly important role in the global LED lighting stage. Sanan Optoelectronics is a typical example. The company's 2-inch wafer capacity has a global market share of only 2 in the fourth quarter of 2010, and is expected to exceed 14 by the end of 2015. In addition, its technology has also improved over the same period, and continues to swallow the market share of Taiwan, South Korea and other international LED companies. The outbreak of China's LED upstream market may be attributed to government support. However, IHS is also beginning to see the development of China's packaged LED market. At the beginning of 2014, China's largest packaged LED manufacturer Mlinson (MLS) entered the top 10 in the global industry for the first time. Since then, the company has expanded rapidly, and today it has reached 20 billion LED chips per month. It is the world's largest packaged LED manufacturer, and its revenue reached the seventh in the world in the third quarter of 2014. In the end, with its tens of thousands of lighting products manufacturers, China has become the world's largest lighting production base, and will continue to maintain this position in the next few years. Most Chinese lighting manufacturers are focusing on the opportunities brought by LED lighting, and thus quickly completed the transformation of their traditional business to LED lighting manufacturers. In fact, several of the largest Chinese manufacturers currently have the capacity to produce more than 10 million LED bulbs per month. In addition, these companies are also trying to build their own brands in order to compete in the international market. For example, Opt made a strong landing in the lighting and architecture exhibition in Frankfurt, Germany in 2014. Given the growth of Chinese LED manufacturers' market share in the entire industry chain, 2015 will undoubtedly be a crucial year for the global LED industry. However, in order to compete with international companies and maintain growth, Chinese manufacturers must overcome the perceived problems of the quality of their products that continue to plague them while ensuring low price levels.
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