Analysis of supply and demand situation of LED market in 2012

LEDinside said that by the end of the month inventory adjustment and demand impact of light, the majority of LED manufacturers in December revenue will decline 10~15%. LEDinside statistics, rate of low status in various manufacturers capacity utilization, 2011 LED chip supply is still as high as 174 billion, while the chip demand only 129 billion, pile up in excess of requirement rate as high as 35%, so most LED vendors in the second half faced a huge inventory pressure regulator.

Outlook 2012, due to the huge capacity of the MOCVD machine has not yet been fully released, so the overall industry oversupply situation is still difficult to solve. However, the patent threshold and high-tech manufacturers still have the opportunity to tide over the difficulties.

Supply side - inventory adjustment and cost reduction

Recent terminal market demand affected by the global recession, many LED manufacturers export orders dropped. There are still only a few orders for commercial lighting and public sector projects. According to the LEDinside observation, LED manufacturers many small export orders due to reduced, coupled with the increasingly fierce competitive environment, the Chinese new year before there are still many companies facing bankruptcy crisis. The upstream firm chooses the customer and credit amount more cautious.

In the careful shipping and inventory level rising situation, most manufacturers choose to reduce the rate of capacity utilization and forced employees to take leave to control costs and reduce output, how to reduce the inventory level but a pressing matter of the moment is the huge LED manufacturers.

Demand side - LCD TV with LED backlight market waiting for end application demand emerges

As for the consumption of a large number of LED LCD TV backlight market, by the global economic downturn in 2011, the global LED backlight LCD TV (LEDTV) shipments significantly less than expected. 2011 LCD TV shipments also reduced from 220 million units to 203 million units.

But with the big event in 2012 World Cup in Brazil, as well as TV brand manufacturers have launched low-cost LED backlight TV to stimulate demand, expectations for the LCD TV sales volume in emerging markets is expected to improve, then the market will benefit the LED backlight.

Demand side -LED lighting market grew slowly, multinational governments and vendors to actively promote

LED lighting market, the traditional commercial space lighting market in Europe and the United States mature market is the largest, but after the European debt crisis, the European market growth momentum slowed. But there are signs of growth from the public sector or power plants. Especially the United States, Australia market and other outdoor LED lighting, building lighting project quantity and scale in the eastern United States continued to improve, LED street plan and project showed significant growth, while Australia has released the lamp power plant standard case gradually forming.

In addition to project oriented, high profit products in the field, LED lighting has been more obvious development, LED bulb market is still relatively fast in the Japanese market. As for professional lighting, plants and agricultural lighting (including UV hardening), freezer lighting and so on, but also more and more attention by the industry.

Outlook 2012, dynamic South Korean companies to be more noteworthy, in addition to Seoul semiconductor gradually reach a cross licensing and five international LED plant, Samsung LED is integrated into the Samsung Group, in addition to combining technology with semiconductor sector closely. LED production of their own supply to the Samsung Group in the proportion of mobile phone backlight and TV backlight will be possible to further improve. Coupled with the global layout of the group's marketing channels for the development of lighting brands is a strong opponent of all LED vendors.

Oversupply situation is still difficult to solve the short term, but the LED terminal market demand continues to grow rapidly. Therefore, in 2012 will be seen as the performance of individual vendors, and into the big rival knockout contest. Therefore, only to improve the technical content and patent threshold has the opportunity to survive in this knockout.