Market competition is intense, Taiwan LED output value is declining.

LED's market situation is still grim after two years ago. Judging from the operation of the first half of this year, the output of Taiwan LED wafer, grain, and packaging, modules and other products can not be avoided this year. The industry is also reducing its revenue by reducing production, plant integration, and adjusting product lines, as well as developing high brightness four yuan products, invisible light UV/IR, automotive and other niche applications. And the margin of loss has narrowed in order to tide over the transformation process. In the first half of 2016, the output value of Taiwan LED wafer and grain industry was about 17 billion 200 million yuan, declining by 12%, while the output value of packaging and module output declined by 6% yuan to 41 billion yuan. In the first half of 2016, the top ten LED chip, grain manufacturers' revenue, net profit and capital expenditure were shown in Table 1. The first ten combined revenues declined by 12% in the first half of the year, and the losses expanded from 47 million to 4 billion 287 million yuan, while capital expenditure also decreased by 26% to 1 billion 650 million yuan. Leading plant crystal power has reduced the cumulative decline in revenue by reducing production, plant integration and adjusting product mix. However, it has lost 3 billion 540 million yuan in the first half of 2016. Only four yuan products as the main body of Guang Lei and Ding Yuan paid profits. In the first half of 2016, the top ten LED packaging, module manufacturer revenue, net profit, capital expenditure and other operating figures. The first ten largest combined revenues declined by 5% in the first half of the year, and the profits were cut from NT $1 billion 80 million to NT $540 million, and capital expenditure dropped by 31% to 1 billion 360 million yuan. Leading billion light camp flat, net profit growth of 4%, the best performance. In the first half of 2016, the number of LED operators in Taiwan was still on the decline. Most of the capital expenditure projects in the long term development index decreased by 30% compared with the first half of 2015, indicating that the industry is still in a doldrums. Only Chuang Dian, Yi Guang, Guang Bao, Longda, Rong Chuang and other big factories have energy to invest in capital expenditure, such as new technology and equipment, and most of the other industries are shrinking sharply, which is not conducive to long-term operation and development.