Current situation of domestic LDE chip market under financial crisis

From the U.S. subprime mortgage crisis of the global financial crisis intensified, from the United States to the EU countries have obviously felt the impact of the financial crisis on the real economy, the stock market slump, the continuous downturn, steel and other commodity prices continue to decline, the relevant EU institutions recently released forecasts that the EU growth next year is almost GDP zero. In the context of global economic turmoil, China's LED chip market situation? Is it affected by the financial crisis?

1 different types of products are obvious, each with emphasis

Now, including Europe, the United States, Japan, Korea, Taiwan, mainland manufacturers of various types of LED chips are sold in the domestic market. However, due to the differentiation of the product itself, coupled with quality, price factors, the market focus is also different.

Several major companies in Europe and the United States due to the monopoly of the core technology, the control of the domestic high-end chip market, but also grab the biggest profit. According to agents, Lumileds production of 70-80lm high power blue / white chips per market price is still about 2-3 yuan. The Taiwan production of high-power blue and white, even if the flux reached 70-80lm, the price is only about 120 yuan /K, due to the recent financial crisis, the decline in demand, leading to some manufacturers dumped goods to return the funds, prices fall further, now roughly 100 yuan /K.

The definition of products in Europe and Japan, although a variety of colors of the products are for sale, but because the leading edge in the blue light LED chip technology, the price has a monopoly, so the market sales by blue white. Taiwan chip color, the wavelength is complete, and many manufacturers of the same color chip with flux 10lm segments, can meet the high, medium and low-grade types of demand, and the price is relatively low, so the domestic chip sales market in Taiwan occupy half of the country to product. In contrast, the domestic manufacturers of products are in a relatively weak position. Although the market has twenty several manufacturers of chip sales, on the one hand, because the amount is very small, can not form an effective supply; on the other hand, the main or performance and quality is not stable and it does not pass, and chips to compete in Taiwan and abroad. Several chip sales staff said, according to their understanding of the market, the current low power red, yellow and three fudihu chip is relatively good, is also recognized by the market, other manufacturers either yield is too small, the supply is not stable, or still in the sample trial, market sales impossible. As for the price, now about RMB 10-20 yuan /K.

2 affected by the financial crisis, demand reduction, profit decline

Financial turmoil, the Taiwan region is perhaps the first to feel the impact of the financial crisis in the region. According to media reports, since May 20, 2008, China's Taiwan region LED share price fell more than 60%. At the same time, due to the slowdown in the growth of the LED application market, coupled with the impact of the subprime mortgage environment led to the weakening of consumer demand, making the LED industry is facing the pressure of excess capacity, especially in the upper reaches of the LED epitaxial wafer, chip industry. The Taiwan EPISTAR said recently that this year the new 20 MOCVD has been fully in place, but because the blue chip poor demand and capacity utilization is not full, originally expected blue chip capacity up to 800KK-900KK extended to 1300KK-1400KK, has decided to temporarily maintain in 1100KK-1200KK. The company chairman Li Bingjie recently also pointed out that because the LED still has about 50% is used in consumer electronics products, once the consumer spending is shrinking, LED application will be affected in the mobile phone, digital camera, DVD, etc., thereby affecting the entire LED industry. Recently, with the Taiwan region LED manufacturers have announced the third quarter of 2008 earnings, it can be seen, LED upstream manufacturers have been a sign of interest rates for the third consecutive quarter of decline in the market, the profit margin is expected to exceed market expectations.

Effect of Taiwan area was also recently transmitted to the LED chip market in mainland China and across the border. An interview with dealers generally reflect their recent decline in sales, customer orders significantly reduced, even if the sale of good profit margins are minimal. The reason is under the influence of the financial crisis, some of the production and processing of low value-added export products mainly by the impact of small and medium enterprises have been closed down or shut down, on the other hand is the Taiwan area manufacturers in order to survive have dumped goods to return the funds, the market prices under pressure.

In fact, because of the financial crisis is our country other than the rest of the world economy problem, and then these economies have close trade relations with the industry will inevitably be affected, while China's LED industry has a huge domestic market, a large part of the company's products are mainly for export, so affected is in anticipation of the situation. However, the performance of the chip market, an obvious feature is the more serious the impact of low-end products, high-end products regardless of price or sales are relatively stable.

3.LED chip calls for technological innovation and the rise of national enterprises

In the interview, these have long been engaged in chip sales market first people have a common feeling, is the upper reaches of China's LED industry is still too weak, the core technology and the strength of enterprises is the development of China's LED industry weakness. On the chip, although in recent years, the rapid development, there have been a number of professional R & D and production enterprises, but the strength of the national enterprises too little, not to mention the brand. From their regret also expressed to the real