LED Market Volatility

By the macroeconomic impact, the second half of the LED industry boom is not optimistic, the downstream demand bearing industry pressure, eleven period, market expansion to the field of LED lighting, the supermarkets have launched the brand and price offensive, trying to borrow the market flow strong publicity.

Investment adviser senior researcher He Zaihua pointed out that due to the strengthening of the global economic uncertainty, LED terminal demand outlook is weak, manufacturers to reduce production capacity, the number of suppliers inventory has decreased. But at the same time, the circulation channel of the corresponding period is shortened and the efficiency is greatly improved, the delivery period is generally shortened, customer waiting time is reduced, therefore, the current inventory status did not bring to the market a greater impact, on the contrary, the market is more flexible.

In the demand stimulus in adverse circumstances, LED product price decline has become the main performance of the market, from the vendor's investment plan, there will be the next two to three years of mass production release, and with domestic products to increase the rate of decline, the link price will be the long-term trend of the market, since 2009 the number of MOCVD equipment, Chinese enterprises accounted for the global order quantity increasing the proportion of MOCVD, become the largest country of incremental equipment. MOCVD driven equipment incremental market development also reckoned.

Investment advisor research director Zhang Yanlin pointed out that with the first batch of cities to drive the industry gradually into the mature track, the new market gradually rise. By means of financial support, some provinces and cities have carried out the activities of urban lighting energy conservation, which not only provides unlimited opportunities for the LED lighting market, but also provides the corresponding market environment for the development of LED industry. For example, Chongqing, Ningbo, Zhengzhou, Huizhou and other financial support has increased, competing to launch LED lighting projects.

According to the investment adviser released "2011-2015 Chinese LED semiconductor lighting industry investment analysis and forecast report" shows, 2011, sapphire material manufacturers expanded significantly, because of supply chain problems caused by the March earthquake in Japan has been basically solved, and the overall production capacity has been restored, therefore, if the gradual release of production capacity, will greatly exceed the current the demand of the market, and will have a certain impact on the future market.