Lighting into a new growth point in the LED industry

Since last year, LED LCD TV penetration increases, LED chip demand, resulting in LED chip and its upstream materials and equipment supply shortage. The entire LED industry chain are currently expanding production in order to meet the demand, the industry has entered a boom phase.

With the upstream chip expansion equipment have been put into use, is expected this year, only Chinese chip production capacity will reach 200 billion or more than 60 billion last year, only two times higher than the upstream may be due to overcapacity prices. LED this year in the field of LCD TV penetration rate will slow down, lighting will become a new high growth point. The upstream chip manufacturers substantial expansion, resulting in a substantial increase in the supply of chips; at the same time, the downstream demand, especially the penetration in the lighting field, still in time; this chip overcapacity will be a high probability event. But we believe that this stage of excess capacity for LED penetration and popularity in the field of lighting is beneficial. The reason is: the biggest problem is currently plagued by the popularity of LED lamps is cost and price, upstream chip overcapacity will bring down the overall price of the downstream LED lamps, LED lighting demand will rise. With the upstream chip investment logic is different, LED chip prices brought about by the expansion of demand will be conducive to the middle and lower reaches of the packaging test and application. Therefore, in 2011, we are relatively optimistic about the performance of the LED packaging and application sub sectors.