Encapsulation is an important part of the LED display production process. Generally speaking, the function of the package is to provide sufficient protection for the chip to prevent the chip from being exposed in the air for a long time or mechanical damage, so as to improve the stability of the chip. For the LED package, it also needs good light extraction efficiency and good heat dissipation, and a good package can make LED have better luminous efficiency and heat dissipation environment, and thus enhance the life of LED. After a few years of rapid growth, the global LED industry is gradually entering the "plateau period", the growth rate has slowed down. Although the industry growth rate has slowed significantly, but the regional pattern of industry is changing, global packaging capacity is accelerating the transfer to china. Among them, the market share of Chinese manufacturers continues to rise, is playing an increasingly important role.

The global LED packaging industry is mainly concentrated in mainland China, Japan, Taiwan, the United States, Europe, Korea and other countries and regions. From the LED industry development, the first stage of Japan and the United States, Europe and other manufacturers rely on first mover advantage, has the advantage of technology and equipment advantages, become the center of LED packaging industry in the world's first; the second stage of the Taiwan and South Korea have consumer electronics industry chain integrity, each link of clear division of labor, and the rapid rise in the current third; China stage, the mainland, to undertake industrial transfer, while benefiting from the cost advantage and the strong market demand of downstream products, has become the world's important LED packaging production base.

LED packaging industry has gone through the era of high margin, is currently maintaining normal gross margin. Domestic LED packaging market, a number of packaging leading enterprises, the strength of competition continues to increase, the scale continues to expand, in the domestic market competitiveness and independent intellectual property rights is not weaker than in foreign countries and Taiwan LED packaging enterprises. In terms of encapsulation, domestic enterprises have the same strength as those of international LED companies. Now more than 1000 packaging companies, with annual sales of more than 100 million yuan in the first camp of more than 30, sales of 10 million yuan to 100 million yuan between the second camp enterprises less than 300, accounting for about 30%, most of the enterprise sales of less than 10 million yuan. LED industry chain midstream package links, Taiwan and Korea enterprise technological progress is obvious, sales surpass Europe and america. Taiwan and South Korea has a complete industrial chain of consumer electronics industry, supporting each other, stable supply and marketing, with backlight market industry advantage, the LED package enterprise output and revenues are the highest in the world, but they still have the enterprise and the technology gap between Europe Japan and the United states.