How the terminal market slightly warmer LED industry to get rid of the puzzle?

Terminal market slightly warmer, but still too cold upstream

Although March LED market indicator signs industry warming significantly, the LED chip and packaging manufacturers confidence index has significantly improved since the beginning of February. By March, the confidence index of the package had been restored to more than 4000 (see Figure 1)

But the preparation of sampling object ledx selected mainly in Taiwan professional manufacturers, manufacturers in Taiwan because of a clear division of labor, can better reflect the changes of downstream industries, selected manufacturers such as table:

LED business enterprises on the mainland, in the competition and different stages of development, but not necessarily as ledx reflected that feel the spring is coming. Downstream companies may be able to feel the signs of market warming, orders from Europe and the United States market has an increasing trend. However, because years ago, high water industry inventory digestion still need time, warmth packaging industry market with inventory level dropped slightly upstream chip industry experience, but still in a Xiao Sha price clearance, the production line is still hovering in the low operating rate. The whole industry supply far exceeds the demand, although the price war has intensified, but LED devices because of strong specificity, low price elasticity limits the market response to the price, the price did not bring down the rapid growth in volume of demand.

Industry oversupply reasons

If back at this stage of the industrial source of excess, the great leap forward since 2009 launched the project is the cause of the chip. The financial tsunami in 2008, prompted the then government adopted a loose fiscal policy and fiscal competition among local governments, Yangzhou and Wuhu, Tianjin and other city local government hopes for high-tech enterprises to sign LED subsidies to attract companies settled locally, thus forming a can pull the local LED industry the growth pole, the result of the game is all over the place earlier launched chip project.

However, in 2008 after the financial tsunami the quantitative easing monetary policy and active fiscal policy, not only to resolve the crisis, later, that 2 years after the formation of a greater crisis. LED industry is expected to market size and did not arrive as scheduled, but the impact of the European market demand plummeted after the European debt crisis, LED growth slowed significantly. 2011, most of the pre investment MOCVD machine installation and commissioning should be completed after a period of trial production into the mass production stage, some machines have to be sealed up to be opened again. More manufacturers do not install the machine directly back to sell. MOCVD became a hot potato to the toxic assets from all loot xiangbobo.

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