Big brother behind crystal power cut, LED chip prices bottomed out

LED's positive view of crystal crystal electric electricity production since the fourth quarter of last year to freeze the 25% largest production capacity, start in the history, although this may cause the unit depreciation cost pressures, but in the last week of LED super shareholders meeting, Everlight dongzuo Ye Yinfu, Dongbei dongzuo Wu Qing Hui expressed support for crystal electric start the production mechanism, and the wafer purchaser point of propaganda, chip prices have bottomed out.

Billion light chairman Ye Yinfu in the industry to the executive power known, he said, compared with the old equipment is of no economic value, gas consumption, low efficiency, do more than moderate production, thanks to the elimination of the machine should be closed.

Ye Yinfu also stressed that 100 million light crystal power of the chip as the main chip prices have stabilized at the moment, and even some of the prices have been too low rise, although the overall increase is difficult, but at least not fall".

East Bay chairman Wu Qinghui pointed out that the electric stove off some crystal (the cut) for a new stove, saving the cost of gas, the wafer production equipment and the proportion of the cost is very high, production can reduce expenses, improve operational efficiency, from all walks of life should be positive. He believes that the worst of the situation in the industry, the economy should have bottomed out in the fourth quarter of last year.

EPISTAR begins to freeze 25% capacity from the fourth quarter of last year, the production rate is the largest in the history of the operation, the blue MOCVD from 450 to the current 375, with several pieces of EPI wafer calculation, there are still about more than 1 million capacity operation, utilization rate back to 90%. Even if has cut the production capacity of 25%, the production capacity of the equipment of crystal electricity is still ahead of the more than and 300 sets of three.

EPISTAR chairman Li Bingjie said that since the crystal electric shout cut, chip prices had only steady, there is excess supply of 20%, mainly LED lighting output accounted for 45% of the total output value of the whole, the backlight proportion is as high as 70%, the price of lighting is not good, very hurt the industry, supply and demand in the short term is difficult to balance.

Production operations common to all types of electronic industry, DRAM, LCD, the foundry industry will usually cash costs as production key, once the price fell below the cash cost of products, that even have enough money to pay the material, usually will start the production plan in order to stop bleeding. In the past practice, electronic factory production is usually the bottom of the economy to reduce the signal, the stock price will tend to drive up, but the price of this wave did not stabilize the price of electricity, analysts believe that the main competitors did not follow up production.

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