China LED chip market supply and demand gradually improved

2017-2-8 15:06:01

2016 years ago, LED chip manufacturers have expanded their business, resulting in significant excess capacity, prices continued to decline rapidly, making the LED industry drastic changes. Many poor management of small enterprises due to technical backwardness and other reasons, have cut or transformation, a large number of LED companies out of the market.

At the same time, the state subsidies to reduce the intensity of MOCVD equipment, lack of funds for small businesses unable to expand production. Overseas LED chip manufacturers are also a sharp decline in profits, lower product gross margin.

However, since 2016, with the steady growth in demand, LED industry, supply and demand relations to gradually improve the recent emergence of product-intensive price increases. The industry said that not only the LED chip prices, the screen is also up.

Prior to the manufacturers demand forecast is too conservative, resulting in insufficient production capacity; the same time, rapid expansion of intelligent products, chip screens and other products, a substantial increase in demand. These factors overlap, making the contradiction between supply and demand intensified.

The industry spread of a stamped with three security photoelectron official seal of the "contact letter", decided to January 20, 2017 from the S-30MB / S-32BB series prices 8%. Encapsulation Enterprise National Star R & D Center, Xie Zhiguo, deputy director of the National People's Congress confirmed that the first day of 2017 the country received three security photoelectric price notice.

On the one hand, three security photoelectric price increase is the reason; on the other hand, with the exit of small and medium-sized manufacturers, LED chip industry is mainly concentrated in the hands of several large manufacturers, the seller status is more powerful.

According to "LED industry market outlook and investment strategic planning and analysis report" analysis, by the end of 2017, LED chip production capacity of about 83.28 million effective demand of about 92.35 million. Demand for outdoor full-color display 260 million, an increase of 5%; indoor small spacing demand of 1.02 million, an increase of 50%; mobile phone backlight demand of 1.39 million, the same time, Tablet PC backlighting needs of 440,000, computer and TV backlighting needs of 6.99 million, 1.06 million automotive lighting needs.