The maturity of LED industry chain provides an opportunity for Chinese Enterprises

Chip supply and demand in the future, chip prices stable

LED industry chain research is a clear feeling that some of the old industry in the past because the old machine, not the economy, it is difficult to compete in the current situation, product sales barely maintain cash flow interest. The number of books on the MOCVD does not reflect the true supply (many machines are not available). If the original manufacturers do not have the money and the determination to invest in updating the machine, it is easy to fall behind in the wave of the industry, the trend will become increasingly strong strong pattern. Chip supply and demand in the next period of time will be tight. From the price point of view, chip prices remain stable.

Light season effect is very obvious, inventory to the good manufacturers Q3 high operating rate

The lighting industry season effect is very obvious, usually Q1, Q2 to the channel distribution, and then look at the channel to revise. So Q3 is relatively weak, many companies are watching and then adjust. Some of the traditional commodity factory pressure point, must do a lot of category meet dealers, part of standard general lighting manufacturers Q1, Q2 inventory to the good, the overall momentum of rapid development of LED lighting, Q3 expected off-season operating rate remained high.

The growth of LED lighting is the opportunity of China's industrial chain, and the integration ability of the system is more important

2014 LED lighting will exceed the size of the backlight, an important driving force in LED demand, LED lighting output will grow from $20 billion in 2014 to $49 billion in 2018. Compared to the backlight industry chain, LED lighting is an opportunity for Chinese manufacturers, because China's lighting accounted for 60%~70% of the world, the industrial chain in china. With the entry into the LED and the scale of the scale of the LED industry will be more affected by the laws of the semiconductor industry and drive, embodied in the industrial chain division of labor is more refined, more focused on industrial scale.

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