Mainland LED industry knockout will accelerate

Recently, NVC issued a profit warning, warning last year profits will be substantially reduced, the mainland LED industry also continued to decline in product prices, profit margins continue to shrink, too much LED plus the number of factory, supply and demand balance has not been under continuous reshuffle, ITRI believes that mainland China will be tens of thousands of LED plant industry in recent years, continuous reforming, leading LED the number of plants will be changed to less than 20.

The mainland LED industry in the excessive expansion of production capacity, resulting in global LED production capacity situation has continued to pile up in excess of requirement this year, with prices continued to decline, a large LED Maori small factory in facing battle, no economies of scale, is facing a knockout, and trends ITRI Industrial Economics Research Center Analyst Guo Ziling believes that the mainland government in order to focus resources, supporting enterprises will narrow the scope of the future was, from the recent, solar energy factory Suntech declared bankruptcy to the situation, the government policy to sniff out the situation.

NVC is a heavyweight, lighting manufacturers, NVC issued a profit warning, warning at the end of last year, shrinking profit situation, manufacturers in the mainland to profit warning, the overall supply chain shuffling trend will be more obvious, Guo Ziling pointed out, LED, many manufacturers, packaging factory has more than 1500, while the lighting factory is 10000 in industry competition, quality, technology and scale threshold will be higher, with government subsidies towards, estimated in recent years, LED leading enterprises reforming to 10-15, the LED component manufacturers will only single digit number.