Crystal electric blue chip local expansion blue light LED price pressure Q2 is expected to ease

From 3 to April to enter the TV backlight LED stocking period, because the new global MOCVD last year only 100 units, compared with the previous year cut, crystal electric blue LED front of the Lei wafer process transfer capacity is tight, EPISTAR has local expansion plan, forecast in the second quarter is expected to open new capacity, reduce the price pressure of blue LED.

EPISTAR said that after the lunar new year, demand returning customers TV backlight, compared to last year demand after June started a lot of good, but the global production capacity is little, plus EPISTAR and selective production orders, so Lan Guanglei wafer capacity is tight, the crystal electric current according to the customer relationship, product mix considerations of a single row. Blue price pressure has been alleviated.

In 2016 the global LED chip plant enlargesoutput conservative, global only added 100 MOCVD, compared to 200 in 2015 this year, according to Taiwan is almost cut, crystal electric estimates, the world's new machine about 200 Taiwan, although doubled compared to last year, but the crystal power that, compared with the global 3000 to 4000 machine units, the minimum capacity increase, and expansion production also represents a new demand.

Each of the new LCD TV usually distribution in the second quarter, LED stock boom will be the emergence of in March to April in advance, with LED display, and mobile phone flash demand growth, this is a blue Lei wafer tight capacity factor.

EPISTAR estimates, LED display to 2020 compound annual growth rate of more than 20%, whether it is a small pitch screen, indoor or outdoor display would eat a lot of capacity, coupled with the expansion of control, prediction in the first half of may appear blue epitaxial wafer tight, crystal can have local expansion plans, to fire claims purchasing equipment last year, the second quarter of this year will gradually release new capacity.

The beginning of the implementation of the 25% crystal electric production plan from before the fourth season last year, more actively organize each plant, improve operational efficiency, the first quarter of this year's rate is relatively low, the gross margin has not significantly improved, but the beginning of the second quarter utilization rate climbed, gross margin can experience significant progress.

As part of the four yuan LED, continued to maintain a high visibility, modest off-season falling orders, can maintain the season 7 to 8, but four yuan LED application such as dispersion, dispersion, IR LED automotive customers many tourists, there is also a highly customized features, so the crystal can very cautious expansion the future, as long as the use of MOCVD process products, crystal electric will be considered.

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