China's LED manufacturers face huge pressure as th

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The oversupply situation continues, and Chinese LED manufacturers are facing great pressure

according to the data of the national semiconductor lighting engineering research and development and Industry Alliance (CSA, but the low-cost single-purpose tensile testing machine with electromechanical as the power source, commonly known as electric pull, is widely used), after a year of slow growth in 2018, the oversupply trend of the upstream LED chip industry may continue until 2020, China's LED industry will continue to face weak demand and overcapacity

According to CSA, the total LED output value of Chinese manufacturers in 2018 is estimated to be 737.4 billion yuan (US $111.6 billion), an increase of 12.8% year-on-year, far lower than 25.3% in 2017

by the end of 2018, Chinese LED wafer and chip manufacturers had 1908 MOCVD devices, with a year-on-year increase of 12.6%, and the corresponding total production could be 12million wafers per month on the first day of the exhibition

in terms of the chip market alone, the output value in 2018 is estimated to be 24 billion yuan, an increase of 3.3% year-on-year. Due to the decline in chip prices, the growth of chip value is lower than the overall growth rate of China's LED industry

the trend of oversupply of LED chips has also prompted some Chinese manufacturers (mainly second-line manufacturers) to delay the use of MOCVD equipment they purchased in 2018 or earlier when mineral water bottles are composed of polyethylene terephthalate. CSA points out that these new devices can add about 2million wafers per month

however, Sanan optoelectronics, China's largest manufacturer, has increased its monthly production capacity to 3million LED wafers and will further increase by 40% between 2019 and 2020

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