LED enterprises brake in time, industry tends to return to benign development
Date: 2017-04-15 14:48:06 Hits: 380

In recent years, many new enterprises have emerged in the LED lighting market, and the traditional lighting enterprises have launched a strong expansion offensive. After the frenzied expansion of the LED lighting industry, the market demand is too saturated, leaving a serious overcapacity, and then lead to price wars and industry reshuffle. The full reign of terror scene occurred yesterday as visible before the eyes.


today, industry finally return to a healthy and rapid development of the node, then the LED lighting companies how to see the direction of development, to a new round of growth of LED industry driving force?


in 2010 to 2015, the upstream enterprises in LED industry chain (including LED chip and package) is the main production bottlenecks. The highest technical content, lucrative. For example, LED epitaxial wafers produced about 40 million square inches in 2011, and by 2015 the output had reached about 90 million square inches.


during this period, many LED manufacturers crazy expansion, fierce competition in the market, resulting in excess capacity LED. Product prices also continued to decline, the highest drop of 30-40%, and even the highest industry boom in 2014 also fell by 10%. Global chip manufacturers have dropped profits, gross margin is generally low, a number of enterprises are facing a loss.


bad situation continued in 2015, government subsidies have also changed, the abolition of the new MOCVD subsidies, leading to new production line machine investment highlights the pressure of domestic small and medium-sized manufacturers, core expansion impulse fell sharply, the lack of weak expansion of small business funding. Chen Yansheng, chairman of the China Lighting Electrical Association, has said that companies need to calm their hearts to see the LED industry. LED lighting after more than ten years of development has gradually entered the mature stage, the government subsidies gradually exit, media speculation enthusiasm has faded, the lighting industry practitioners need to view the industry status quo and development in order to calm the mind of. After


in consciousness to the crazy expansion for the blind construction, some small and medium enterprises choose to shut down production, increase selection of some large enterprises.


2015 the second half of the year, Taiwan LED chip leading EPISTAR production began, the first quarter of 2016 is a new start in the history of the largest production, total closure of 2 factories, the cumulative production of 25%. At the same time, freezing up to 1/4 of the MOCVD capacity, production capacity optimization. In addition, Samsung, CREE and other international companies have made selective production decisions: Samsung, LG is shutting down part of the production capacity; CREE implementation is significantly reduced, the high power chip synchronous production by 25%, to ease the situation and imbalance of price LED industry supply and demand downward pressure; the new century has not deployed the expansion in recent years plan and plan to join the new machine etc.) gradually reduce capacity and cancel expansion plans in early 2016; Sanan optoelectronics terminated 47 Taiwan to Germany's MOCVD procurement contracts etc..


LED industry to develop here, the depth of the industry reshuffle has eliminated many “ empty, a production ” enterprises. At the same time, the company's production strategy and supply side reform policy implementation, the upstream industry capacity began to shrink. The production is also accompanied by price increases in 2016: EPISTAR announced that in March about part of the product price 15%. And the move for the LED industry, it can be said that a pattern began to change signals. Subsequently, the mainland's largest chip manufacturer China Sanan optoelectronics, packaging manufacturers, XinDa, Hongli photoelectric M.L.S. Newell, nationstar, HC semitek enterprises have on the part of the product price. In addition


, although many enterprises at home and abroad have been reduced, but also a lot of foreign chip companies will be part of the product orders to the domestic enterprises to carry out processing. Data pointed out that in 2016, domestic chip exports accounted for 9.6% of the total domestic chip output, an increase of 1.6 percentage points in 2015 compared to the same period. Chip production in 2016 grew by more than 10% year on year. General lighting market in China as the main direction of the global LED application, 2015 27.2% (Digitimes), permeability permeability is expected in 2016 will exceed 31.3%, the global market size of up to $34 billion 600 million, is expected to 2017, the permeability can be over 36%, the market size of more than 10% growth.


from industry development in recent years, we can see that the LED industry supply and demand has been improved: the downstream and upstream capacity contraction, strong demand abroad.



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