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LED Industry Depth Report: Clean The Lead, The Light Is More Striking
Jul 14, 2017

LED industry depth report: clean the lead, the light is more striking

After the industry shuffling, prosperity continues

Since the second half of 2016, the chip production capacity nervous full industrial chain continued high boom has produced the LED industry, the reason lies in two aspects: one is from 2010 to 2011 expansion of MOCVD machines have been eliminated due to inefficient, new machines capacity has not released a whole industry tension capacity; In recent years, local governments have pulled out of the subsidies of MOCVD machine stations, resulting in the withdrawal of small and medium-sized chip factories that have been unable to produce blood, and the industry's capacity has been reduced. Under the action of the two cars, the industry can shake off the burden and pack light, and welcome a new round of growth.

The pattern is becoming clear that demand is exploding and leds aren't winning enough

Standing at this point in time, we think the LED market is far from over. The reason is: 1. The trend of overall production capacity shifting to the mainland has been determined that Chinese manufacturers are not only facing the domestic market, but also looking at the growth of the industry and enterprises in an international market. 2. The trend of concentration improvement is spread from upstream to downstream. The head manufacturers will benefit from each link, and the growth rate is better than the industry average. 3. The downstream demand continued to be strong, exceeding market expectations. If industry*7 boom on supply side is in nearly a year, that the next phase of dominant industry growth on demand, from lighting to display, for new products and technology, stimulate broader needs.