LED industry is still grim next year

LED is a sunrise industry, currently has a similar plight of the photovoltaic industry, which is overcapacity, although the difficulty is not so exaggerated photovoltaic. Wuhu LED industry upstream of the big two production bases: Sanan optoelectronics and elec-tech.

The central authorities and the LED as a key industry of the city should help release the market demand for LED, or domestic production capacity will be released overseas, may lead to anti-dumping, like photovoltaic. "Elec-Tech chairman Wang Donglei told reporters during an interview in Wuhu says.

Industry waiting for digestion capacity

Wang Donglei appeared in front of reporters the day before, still in Dalian. De Ho Runda in Dalian, Yangzhou, Wuhu has built three bases, the original plan to invest $12 billion on the top 200 MOCVD (production of LED epitaxial chip key equipment), and now the entire investment plan has been revised downward.

Wang Donglei correction plan is the rapid expansion of the LED industry capacity. 2009 Elec-Tech to enter the LED industry, industry gross margin is high. Now run a BDO industry heavyweight, while also facing overcapacity throughout the industry.

LED overcapacity, is the last two years. As a branch of the semiconductor industry derived, LED was not a major industry, mainly used in small cell phone backlight and other fields. 2009 is a watershed, Samsung pushed the LED back to the field of TV backlight, each TV consumes hundreds of LED, LCD TV sales of one million units a year, so that the outbreak of the LED market. The rapid growth in the number of MOCVD, half of the world's MOCVD equipment sold to China in 2011. But the market is not expected to grow so fast. Domestic LED companies are very large, mostly concentrated in the downstream packaging industry areas, this year, the production scale of LED packaging enterprises over 1700, accounting for the world's total of 80%.

At present, the Wuhu base to start the LED chip Elec-Tech rate is about 50%, which can be regarded as the industry to avoid excessive to kill Wang Donglei. "Sanan Optoelectronics (Wuhu base) 6 months of rapid production, make the chip market price decline of 20%, if Elec-Tech also hype, the market price fell to 20% is not surprising. In Wang Donglei seems to slow down the pace of the industry in place MOCVD speed, can reduce production losses, waiting for the opportunity to pick up the industry.

Wang Donglei pointed to the timing of the industry rebound, roughly 2014. "24 months later, LED chip will be hot to what extent? There will be people lined up to order. "

Next winter

Wang Donglei said Sanan optoelectronics 6 months of rapid production, is a successful case of Wuhu investment. Sanan Optoelectronics in recent years has been the domestic LED chip industry leader, chip production base in Xiamen. In the planning issued shortly after, Sanan optoelectronics were built in Wuhu economic and Technological Development Zone LED photoelectric industrial project Chinese largest.

Elec-Tech Sanan optoelectronics, LED project in Wuhu Economic Development Zone, but separated by more than 10 kilometers. Wuhu base all debugging completed, is now full load production. "In the open area of the office building, an optoelectronic director Kan macro column to accept the Securities Times interview said:" the whole of 2013 is the LED industry's winter, this round of adjustment will appear in the Matthew effect, many small plants may be closed, will reshuffle after less than 10 upstream manufacturers. "

In Kan Hongzhu view, the extent of the upstream chip industry may be slightly lower than the downstream application industry, from the new production capacity, blind expansion phenomenon has been rare. The downstream competition is more intense, in November this year, Shenzhen billion LED enterprise hibo photoelectricity wage arrears were exposed employees for arbitration message, hibo photoelectricity just this year was named "Shenzhen famous brand", the main LED display, this year money cast LED lighting, a lighting project has not got.

"Domestic LED lighting market 95% is government orders. Industry insiders say. Information from the public, the government order is the basic First come, first served. mode. Sanan optoelectronics is headquartered in Xiamen, a project in Huainan City, the city's two street LED orders into an optoelectronic headquarters in Zhuhai; the end of November, Zhuhai also announced the 30 thousand LED street lamp project. At the same time, Wuhu has gathered two giants, Sanan optoelectronics Elec-Tech, and LED Street project in Wuhu were two orders.

Before the three quarter, only 7 growth performance of A shares 20 LED listed companies, leading enterprises in Sanan optoelectronics remain profitable, but net profit growth of 14% over the same period last year. Next year, the merger will be drained at least half of the company, which is the time to judge the inter industry LED.

Will become the next PV

Wang believes that the photovoltaic industry will not fall into the same predicament of photovoltaic. Chairman Wang Donglei is worried about overseas anti-dumping, but at the same time that the use of part of the photovoltaic dependence on government subsidies of overweight, and LED industry market driven consumption in general, such as LED lighting will be the official business, household lighting accounted for 70%, accounted for 30%. In Wang Donglei view, the main difficulty lies in the LED industry is too fast production capacity, the market needs to start a big wait for 24 months. Wang Donglei believes that Elec-Tech has the advantage: "we are involved in the LED industry 2 inch production line is very mature, but I decided on the 4 inch production line debugging, the stove spent a lot of energy, but the production cost is lower 15% ~ 20%. "

Sanan optoelectronics also believes that the photovoltaic industry will not fall into the same dilemma as pv. Director Kan Hung said that the national LED market tender has been launched, which has billions of dollars in the market every year, is expected in 2014 the global economy will pick up,