LED chip demand explosion, expansion plan is urgent

After experiencing the industry reshuffle and pattern adjustment in 2016, China's LED industry is also increasing its concentration towards the industry. In 2017, the LED chip industry market initiative has been in the hands of several leading enterprises, among them, Sanan, Jing The market share of the top three manufacturers of electricity and Huacan is 50%. In particular, Sanan is in a unique situation, accounting for nearly 30% of the market share.

In 2017, the LED chip industry ushered in a new wave of expansion. The LED Research Center of Jibang Consulting analyzed the trend of LED supply and demand. It pointed out that since the LED packaging manufacturers in mainland China have expanded their production capacity since 2016, the demand for LED chips has increased, so China The mainland's LED chip manufacturers have restarted the expansion plan.

LED chip demand explosion, expansion plan is urgent

According to LEDinside statistics, MOCVD equipment producing LED chips will have 401 new installations in the world in 2017 (K465i equivalent), which is the peak of capacity expansion since 2011.

LED inside research associate Yu Yu said that including China's LED chip makers such as Sanan, Huacan, and Aoyang Shunchang, there will be a significant expansion plan in 2017, and it is estimated that when these new capacities are in place, 2017 China The mainland's MOCVD capacity will account for 54% of the global total.

Chu Yuchao pointed out that China's LED chip manufacturers have expanded their production, mainly in response to the increasing demand for chips from downstream LED package manufacturers.

In addition, Guangdong and the Pearl River Delta used to be the main gathering place for LED companies. However, due to the rising human and land costs in recent years, Chinese LED packaging manufacturers have moved to second-tier cities. In order to attract these externally-packed LED packaging manufacturers, various local governments have offered various preferential measures to make the Chinese LED industry reproduce the 2010 expansion boom.

It is worth noting that the new wave of subsidies from the local governments in mainland China is not only for the upstream LED chip companies. Today, the local government will support the LED packaging industry and the surrounding supporting links, hoping to open the downstream LEDs. Haikou, pulling upstream LED chip demand.

Therefore, unlike the expansion model of Chinese mainland manufacturers in the past, SMEs have rushed to set up LED chip factories to take subsidies. This wave of expansion is mainly due to the expansion of production capacity of LED chips and packaging manufacturers in mainland China.

LEDinside analysis, China's LED companies continue to accelerate the expansion of production with the support of government subsidies, has squeezed the global LED manufacturers profitable space, large companies have reduced the scale, or expand the proportion of entrusted manufacturers in mainland China, China The trend of the makers of Evergrande will be more obvious.

5050 Single Color Led Strip

5050 Single Color Led Strip ,Single Color Led Strip,Single Color Led Strip Lights,Single Colour Led Strip

NINGBO SENTU ART AND CRAFT CO.,LTD. , https://www.lightworld-sentu.com

This entry was posted in on