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Improve The 2017 Chip Will Be In Short Supply, The LED Industry Supply And Demand
Jul 10, 2017

Improve the 2017 chip will be in short supply, the LED industry supply and demand

Raised three Ann photoelectric has issued price, 30 MB/S - S - 32 bb series product prices 8%, climaxing in 2017 LED chip prices first shot. The personage inside course of study says, because the supply side capacity decreased, while demand is rising steadily, the LED chip in 2017 will be in short supply situation.

The improvement of relations between supply and demand

Before 2016, the LED chip makers to expand business, cause excess production capacity significantly, prices continue to decline quickly, upheaval in LED industry. Many poorly run due to backward technology, small firms have cut or transformation, a large number of LED enterprises to withdraw from the market; At the same time, the strength of state subsidies for MOCVD equipment is reduced, lack of funds of small expansion. Overseas LED chip manufacturer's profits are also showed a sharp decline, product gross margin is low.

However, since 2016, with the steady growth in demand, LED industry supply and demand relations gradually improve, recently it is product intensive rise in price. The personage inside course of study to the China securities journal reporter said, is not only the LED chip, screen and so on has risen. After the manufacturer of demand forecasting is too conservative, resulting in inadequate capacity preparation; At the same time, the intelligent products expand rapidly, the demand for products such as chip screen greatly increased. Superposition of these factors, the contradiction between supply and demand.

Three Ann photoelectric price increases on the one hand, the causes of the cost; Exit, on the other hand, as the small and medium-sized manufacturers, LED chip industry is mainly concentrated in the hands of several large manufacturers, sellers position stronger.

Concentration of ascension

After deep shuffling, experts say, the LED industry, reform is fully supply side.

From the LED upstream concentration promoted rapidly, forming high trade barriers, curb the disordered capacity expansion; At the same time the downstream application innovation drive industry chain development. As things stand, LED lighting accelerate penetration, LED lighting intelligent, network to promote small spacing according to market to accelerate the outbreak, becomes the new increase in the LED industry the main driving force.

According to calculation, by the end of 2017, LED chip effective capacity of about 83.28 million, demand of about 92.35 million pieces. Among them, 47.04 million pieces of lighting chip demand, a year-on-year growth of 20%; Outdoor full-color displays demand of 26.02 million, up 5%; Indoor small spacing requirements of 1.02 million, up 50%; Mobile phone backlight needs 1.39 million, 440000 tablets backlit demand, computers and TV backlight needs 6.99 million, auto lamps and lanterns requirements of 1.06 million.

The personage inside course of study thinks, the LED chip production capacity is still less than demand. Considering demand stable growth in 2017, LED chips will be in short supply.

The bibcock of three Ann photoelectric chips as a link, is the only domestic engaged in full color LED chip production enterprises. The company actively expanding production capacity, to the end of 2017 is expected to have 400 sets of MOCVD equipment. Seoul semiconductor, philips, LG, samsung, CREE LED giant overseas has been largely discontinued, new demand to three Ann, is expected to further enhance the company overseas customers order.