LED industry supply and demand will restore balance this year

With the restraint of LED plant capacity expansion in the past two years, coupled with the apparent increase in lighting demand, accelerated supply chain digestion capacity, this year's oversupply of the LED industry has finally shown signs of easing, but whether LED supply and demand conditions can return The balanced water level, the factory expansion attitude of LED factories in mainland China still plays a key role.

The large-scale expansion of the LED plant in China from 2010 to 2011 was a major factor in the imbalance between the supply and demand of the LED industry over the past two years. With the limited expansion of the land plants and Taiwan plants in the past two years, supply and demand in the overall supply chain have gradually tended to balance. , However, the world's largest manufacturer of MOCVD equipment Veeco released a message recently pointed out that Veeco recently saw the first time in two years from the mainland market, the urgent orders show that the mainland chip factory restarts the purchase of MOCVD machine platform plans, Taiwanese companies believe that from the land The plant’s capital expenditure this year still does not see the phenomenon of restarting large-scale expansion of production capacity. However, the expansion of capacity at the Luchang plant will affect the overall supply and demand of the LED industry. If the Luchang plant restarts expansion of production, it will once again warm up the LED industry. Drop a variable.

John R. Peeler, chief executive officer of MOCVD equipment company Veeco, said that the demand for MOCVD terminals kept improving. Although the market conditions of MOCVD terminals are still not clear, they have received some urgent orders. This situation is the first time in two years, and there are some mainland countries. Customers have also begun to raise funds to purchase MOCVD machines. Veeco's demand for temperature recovery of MOCVD equipment will change from an urgent single to a comprehensive one. This will be the key to the recovery of the LED industry.

As for whether or not the land plant will restart and expand the plant, and then affect the recovery trend of the industry as a whole this year, Taiwanese companies believe that in terms of the scale of capital expenditures for LED plants of this year, they do not see signs of active expansion of capacity at the plant. Manufacturers believe that after two years of capacity adjustment, this year's LED industry will restore supply and demand balance, and signs of improvement in industrial supply and demand also appear in the product price, with the LED industry in the second quarter into the season, backlight and lighting needs synchronization Driven by the warming, the prices of products in the market have also stabilized, and the overall price decline in the second quarter is estimated to be within 5%, returning to the level of normal price declines.