Mainland LED manufacturers fear price war

According to market figures, according to market adjustment agency data, China's top 20 LED manufacturers currently have product inventories of up to RMB 5 billion, of which, there are 970 million RMB for the epitaxy Sanchang. The general loss of China's LED factory, the next may have to go to inventory to ease financial pressure, the fastest in the third quarter may sell inventories in the market, then will be a little bit of the dawn of the LED market has become a pressure.

Destocking pressure On the mainland, the LED plant in the mainland is in fear of price war. Researcher Guo Ziling, an LED researcher at the institute, said that the high inventory of manufacturers reflects the high link between the development of China's LED industry and government subsidies. The manufacturers rely on government subsidies and lack of technology, so the inventory is not sold out. In contrast, the Taiwan factory has stable technology and strong competitiveness. However, the high inventory level in China is a continuous phenomenon that has persisted in the past. If it is sold in the market, it will inevitably destroy the price. However, most of the products in the factory are low-end products, and there is not much overlap with the product division of the Taichang factory.

Jingdian said that the current production capacity of blue light has been fully loaded, with a capacity of about 7 to 8 percent; its capacity also points to a full load in the second quarter. Although this year's LED outlook is more optimistic than last year, Li Bingjie, chairman of Jingdian, said earlier that the current visibility of order visibility in May, the amount of customers pulling goods is good, but next depends on whether the price can maintain stability, the second quarter has been discussed The proper price is maintained at 3~5% of normal seasonal decline, which is still normal. The demand and price in the third quarter are still to be observed.

Relevant sources believe that although the inventory of the mainland LED factory is high, it is not competitive with the Taiwan factory in the epitaxial section. Otherwise, the production capacity of Jingdian and Yuyuan cannot go all the way up. In particular, product positioning is mostly low-level, such as low-cost LED light bulbs or display backlights used in consumer appliances, and many of the inventory is actually not realizable, and ultimately may require recycling of resources, so the impact on the factory is limited.