Experienced investment boom, price cuts dumped goods tide, Continental light-emitting diode (LED) industry is moving into the era of meager profit. Under the huge investment in the past few years, the scale of the industry started to grow, but it also brings overcapacity, LED enterprises are facing fierce competition for survival of the fittest. Many industry insiders believe that the industry will face a short-term or cold, the reshuffle is inevitable. Price surges have already struck, but the LED industry investment heat remains undiminished. The latest report is expected by the end of 2012, the mainland LED industry output will reach 205.9 billion yuan. The report shows that in 2011 Continental MOCVD equipment was a total of 803 units, 917 units in 2012, an increase of 114 units. Despite the significant equipment investment to accelerate, but this year, the mainland chip output increased by only 20%, while sapphire prices fell by 35%, LED chip prices fell by 32% year on year, larger declines in prices. "From the point of view of this year's overall upstream field conditions actually improved, mainly due to the second and third quarters of increasing the proportion of investment in downstream applications, of which a large part from the traditional lighting companies transferred to the LED industry investment. "the experts said, from the entire upstream investment situation, the epitaxial wafers investment growth dropped from 46% last year to 10% this year, while the growth rate of investment in the field of downstream applications from last year to 21% in 2012, rising to 53% investment focus of the LED industry, from upstream to downstream. Experts predict that the epitaxial chip companies next year, the remaining 30 will be less than three domestic MOCVD equipment manufacturers, but there will not be product sales, packaging factory will close down 20%, the downstream display screen business failures speed will accelerate, LED Downlight ,the spotlights will be more than 30% penetration in the domestic market, the LED lighting industry sales may reach 10 billion yuan.