LED chip supply and demand imbalance in mainland MOCVD capacity will be put into operation in the second half

According to the TrendForce's green energy division LEDinside latest "2015 global LED industry supply and demand database" report, China, LED chip manufacturers continued to put into production, the 2015 LED chip industry pile up in excess of requirement ratio up to 22%. This year the global MOCVD machine installed capacity will reach 3130 units (MOCVD data into a unified K465i models), of which China's total installed capacity of up to 1473 units, accounting for the global MOCVD production capacity of 47%.

LEDinside research associate storage in ultra pointed out that if the MOCVD conversion machine capacity of LED wafer output in 2015, LED Jordan two inch wafer output is 72 million 310 thousand, than last year growth of 14%. In particular, China manufacturers such as three, changelight Xiamen new factory new MOCVD machine, have been put into production, is expected in the second half of the new single monthly investment amount is as high as 500 thousand, the overall supply and demand of LED chip industry investment shock.

The dilemma is mainly derived from China pile up in excess of requirement, LED manufacturers substantial expansion, especially in recent years, the enterprise LED Chinese through the support of the local government, and the market to raise a lot of money, the enterprise strength is cannot be mention in the same breath. With the biggest LED chip manufacturer, Chinese optoelectronics as an example, the past few years to receive local government subsidies to compare the amount of revenue at about 10~14%, plus the market value of the expansion over the past year, the three ande through stock market to a large number of funds raised. The observation of the comprehensive competitiveness, although the mainland manufacturers patent breadth as Taiwan factory or customer, but in an endless supply of funds face supply, enterprise strength is relatively strong. In contrast, Taiwan LED manufacturers due to the continued decline in stock prices, in addition to brain drain, fund-raising is not easy, so it is necessary to reduce the cash outflow through layoffs or unpaid leave.

In the future, in the case of pile up in excess of requirement intractable dilemma, various LED vendors will continue to proceed from the difference, whether it is product differentiation and market differentiation, are hoping to get rid of the Red Sea market price competition. Chu Chao pointed out that the future of LED manufacturers will begin to change the market strategy, from the past emphasis on market size and share, to ensure profitability to maintain sustainable development.

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