Backlight weak demand LED industry into the product structure adjustment period

The 2 quarter of this year, the LED industry in a relatively sluggish state, the more developed the LED industry in Taiwan, the May LED chip index fell 0.98%, LED package index fell 0.91% over the same period Taiwan semiconductor components index fell 0.4%, Taiwan index fell 0.5%. Over the same period of the mainland market, due to funding crunch and inflation, LED corporate profit margins have also been some extrusion. Coupled with the new domestic production line LED release is not smooth, LED industry as a whole tends to dull.

However, due to the continuing demand for downstream industries LED hot, LED industry is still huge investment. Guangdong City, Dongguan is expected to 500 million yuan per year to support the development of the city's LED industry, and as a large number of LED enterprises in Shenzhen, but also put forward this year's LED industry output value of the target of 40 billion. The demand side, although the promotion project of 2011 national efficient lighting products not as market rumors will LED into the scope of the tender, but the ten city lights semiconductor lighting demonstration city scheme in 2012 will enter the second stage, the local government launched a green new deal (such as the Guangdong province "10000 billion light"), the local government as the main body to create the demand of LED industry, will boost regional industrial development. Tablet PCs and smart phones will also drive the upstream LED industry out of the trough. It is expected that the 3 quarter of the LED industry will be a significant recovery.

At the same time, according to market research firm LEDinside, 2011 LED industry overall output no significantly improved, the estimated 2011 LED chip supply is about 100 billion, while the chip demand of about 89 billion, the ratio of pile up in excess of requirement of 12%; in 2012, after the release of production capacity in a large area, the ratio is expected to pile up in excess of requirement will expand to 21%.

According to the analysis, LED backlight market demand is weak, far less than the industry had expected, resulting in the first half of this year, the overall output value of the LED industry has not been significantly improved, the supply of doubt in advance. At the same time, with China's LED epitaxial plant MOCVD capacity has been opened, the price for LED has begun to produce a low chain effect.

In the LED lighting market, Europe, the United States and other places of outdoor LED lighting, building lighting projects, the number and scale are continuing to improve, the United States in the eastern part of the LED street lighting projects and projects showing significant growth. As for the construction of LED lighting project market, from outside the building decorative lighting, interior lighting in the building, LED lighting market is slowly growing, especially in mature markets.

In addition to the project oriented, high profit products in the field, LED lighting has been more obvious development, LED bulb market is still only the Japanese market is selling. As for the professional lighting, lighting plants and agriculture (including UV hardening), freezing cabinet lighting and so on, these in the first half of this year is LED lighting products category is warm.

In this wave of end demand sluggish, with high power lighting manufacturers, or high power LED shipments to a higher proportion of manufacturers, there is a higher gross margin and stable shipment numbers. This year, the demand for different applications from the terminal market is sluggish, the supply of doubt in advance, the ratio will gradually expand.