Domestic LED chip overcapacity continued to decline

Overcapacity led to LED chip profit thinning. Recently, the manufacturers have released the 2012 annual report, the annual report shows that the LED chip has been in the era of high margin.

According to industry leading enterprises, Sanan optoelectronics released annual report, 2012 operating income of 3 billion 363 million yuan, an increase of 92.48%; however, net profit attributable to shareholders of listed companies 810 million yuan, down 13.47%. It is worth noting that operating income rose sharply, but profits have declined. Reporters found in its annual report, the gross margin of the whole industry in 2011 to 14.36 percentage points, down to 25.31%. In addition to Sanan optoelectronics, other chip companies such as Elec-Tech, Silan, nationstar profits fell in 2012.

It is reported that, with the application of LED technology in the field of lighting, in 2009 the whole industry entered a rapid development period, and is regarded as a sunrise industry, the industry is expected to 2015, LED lighting will occupy 30% of the market share of general lighting, LED lighting industry will reach 500 billion yuan, the Export Department of $30 billion. LED lighting cake attractive, good market prospects, attracting the brightest capital flocked.

However, with the brightest capital have shot, LED industry began to appear oversupply situation. Yesterday, a representative of the company, who declined to be named, pointed out that the current high inventory, the general chip companies have to use half a year inventory. SEMI China senior analyst and LED Project Manager Qi Faxin pointed out that, in fact, in 2012 LED market demand has not declined, but the capacity expansion is far more than the demand. Moreover, the domestic manufacturers in the field of high-end lighting and did not share too much market share, only in the low-end price war, resulting in structural overcapacity.

Appliance analyst Liang Zhenpeng said, LED TV sales stagnation is also the reason for the reduction in chip demand. LED chip is the main component of LED TV, but in 2012 the color TV market is very depressed, unable to stimulate the upstream production and marketing scale.

It is worth noting that, although sales are still slow, however, enterprises in the expansion, Shanghai super silicon semiconductor Co. Ltd. Chongqing LED chip layout project completed and put into production at the end of January this year; Taiwan EPISTAR chip enterprises in expanding production; and the crystal crystal electric factory Changzhou Lite joint venture also increased 8 LED chip production equipment to increase the students yield.

The industry generally believes that the LED chip oversupply, profits can not be quickly improved, expanding production will only cause further decline in profits