Since sales of LED-backlit LCD TV was continued to be lower last year, coupled with that the price and other factors restricting the LED lighting market growth retardation,demand for LCD TV backlight and LED lighting products was slow, while at the same time production enterprises increased rapidly, resulting in the entire LED market oversupply, the whole LED chip industry fell into decline. In 2011 since prices of backlight module suddenly declined, market penetration of LED LCD TV was more than 50 percent for the first time , to some extent to promote their sales market growth, but on the other hand CCFL backlight module prices also fell much; LED lighting products began to gradually replace traditional lighting products market share with the delisting of the incandescent lamp, but due to its high price, and the delay of related government subsidies, thus implementation of the LED chip failed to truly achieve the desired goal. LED market is given a situation of supply exceeding demand before, the gap between supply and demand is even 30%, according to related news that in the first and second quarter the problem will have some relief but will continue, and the excess supply and demand ratio is respectively 19% and 16%. Although many foreign LED industry giants has maken the production of LED MOCVD equipment capacity utilization down to 50% in the fourth quarter , and this year is expected to be enhanced, but as many LED chip production companies in China's domestic LED production have launched LED production, excess capacity is very likely to continue intensified.The face of the market oversupply, the corresponding LED chip manufacturers make the adjustment,slowdown the investment pace ,today's LED industry oversupply is short-term, the industry forecasts that China's future scale development of the LED industry has great potential, there is still a lot of profit space for development,in the future it still needs to increase investment in the LED chip, substrate, package, but now blind investment is likely to cause some risk. |
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The Profit Of LED Chips Is Decreased