Rapid expansion of domestic production capacity of LED or a greater impact on future supply

Recently, the wave of a total investment of 4 billion yuan (Ji'nan) Photoelectron Industry Park 6 in Ji'nan high tech Zone officially commenced, the park is completed, together with the Weifang, Linyi Optoelectronic Industry Park, becoming the largest domestic LED industry base and the largest semiconductor lighting industry base. According to the plan, the optoelectronics industry park is divided into three phases, with a total investment of RMB 1 billion 700 million yuan, is expected to be completed in 2011, reaching the annual sales income of $3 billion. The entire optoelectronic industry park project plans to be completed within 5-8 years, after the completion of the three phase, the annual sales income of 9 billion yuan, which is equivalent to the size of the global LED market in 2008, the total number of $17%.

In addition, the United States will be Corey's LED chip project plan and classification of LED package before the process of wafer cutting, testing part, processing technology and process of semiconductor epitaxial wafer China introduction. Expected to be put into operation next year.

Chinese LED capacity expansion (including industrial transfer) will have a certain impact on global supply and demand in the future of LED, is expected in the future there will be more and more overseas LED companies (including Taiwan enterprises) will enter the LED to the domestic production capacity, will cause some negative impact on the state-owned LED company.