Foreign investment: Global LED supply and demand imbalance will gradually narrow the gap narrowed to 8% in 2018

LED industry, China rise also makes foreign investment institutions in the observation and the selection of the subject, at Chinese, LED plant light shine, and downstream industries will outperform the upstream, mainly due to the upstream supply increases, the foreign capital assessment of supply and demand imbalance of global LED will be gradually reduced, the gap narrowed to 8% to 2018.

The foreign good Chinese, LED package, Linsen nationstar, with Chinese, LED market value scale, the China, LED to its own brand and began to expand the overseas market, the price and complete OEM supply chain industry, China makes LED form settlements rapid evolution, especially for the first China, Linsen packaging factory. The foreign investment in Taiwan's listed companies are equally optimistic about the billion light, pointed out that the light in the light of the foundry and the brand with significant results on the production scale economy.

Although the LED industry has yet to see the dawn, but according to foreign survey, the global LED supply and demand is rapid convergence is expected in the end demand growth, the excess supply range from over 30% in 2012 down to 8% in 2018, although the new production opened after the end of 2015 resulted in the imbalance between supply and demand to expand the proportion to 33%, but the increase in demand side application under the field is expected to gradually converge, plus China, subsidy policy after the exit of the chip MOCVD upstream machine expansion slowed, and enterprises eliminated from the market all contribute to the whole industry gradually bottomed out.

Expected 2016 LED lighting will be the main growth engine industry, with the price of energy-saving lamps and LED lamps to replace government subsidies, such as the Chinese government target for 2020 LED lighting penetration rate will increase from 30% to 70%, in addition, the market niche applications including automobile, medical, agriculture may become a new catalyst, foreign investment is expected in 2016 to the global LED demand in 2018 growth of 9~14%.

Foreign pointed out that currently is an important watershed industry among each plant, with the whole industry and the expected industry will form a bigger trend, due to the 2016 LED price pressure is still heavy, the industry is bound to continue horizontal or vertical integration, and mergers and acquisitions will further accelerate, mainly because manufacturers should use the scale. In order to improve the cost structure, and therefore must be mergers and acquisitions to increase production capacity, in addition, can we achieve high market share high pricing power supply a higher share of the global share; in contrast, land plants more mergers and acquisitions to the advantages of capital, Taiwan factory through deepening the brand relationship with the patent cross licensing Alliance for a space for one person.

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