Compared with the overall decline in the industry as a whole in 2013, the LED industry ushered in a rebound in the boom in 2012, most of the annual report has been published in listed companies are profitable growth. The recent emergence of the LED industry in full swing to expand production, from upstream to downstream applications, all companies are ambitious.
Decline in product prices directly led to the rise in demand. In addition, insiders pointed out that government subsidies can be said to expand production capacity of the process has played a catalytic role in the enterprise and expansion agent, in Sanan optoelectronics, 10 billion project in Xiamen, the original plan was to be implemented in Wuhu, the beginning is not going to buy so much equipment, a total investment of only about 4000000000, Xiamen the subsidy policy, an optoelectronic equipment purchased to 200 units, the total investment is more than doubled.
In fact, after several rounds of capacity expansion, only upstream LED chips, the total capacity of mainland enterprises accounted for more than 60% of the world's total. LED executives of listed companies pointed out that the current global production of MOCVD chips for about 1500 units, while the number of mainland enterprises currently has about 900 units. If the three optical 200 MOCVD equipment to reach full production, the company has total equipment will reach 350 units, will be more than EPISTAR (244), Samsung (182), LG (160), from fourth up to the first world.
LED industry overcapacity concerns began from the end of 2011, but the release of these two years of demand completely reversed the situation. But from the current industry development speed, the LED industry overcapacity may be premature, but if the future demand growth rate is slower than the speed of expansion of production capacity, the industry will lead to a price war, began to pile up in excess of requirement and lead the industry reshuffle the extreme phenomenon.
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