Most LED manufacturers have serious inventory pressure

China LED online statistics, LED chip supply in 2011 is still up to 174 billion, while the chip demand is only 129 billion, oversupply ratio of up to 35%, most of the LED manufacturers in the second half of 2011 faced with huge inventory adjustment pressure. Looking forward to 2012, due to the fact that the huge production capacity of MOCVD machines is still not fully released, the oversupply of the entire industry is still difficult to resolve. However, manufacturers with patent thresholds and high technology still have the opportunity to overcome difficulties in this difficult situation.

The recent end-market demand has been affected by the global recession, and many LED manufacturers’ orders for export have dropped sharply. At present, there are still only a few orders for commercial lighting and utility projects. According to China LED Online Observe, many small and medium sized LED manufacturers have reduced their export orders, coupled with the increasingly fierce competitive environment. Many manufacturers still face the crisis before the Lunar New Year holidays, and they also make the upstream manufacturers more cautiously choose customers and the amount of credit. .

With cautious shipments and inventory levels rising steadily, most manufacturers have chosen to reduce capacity utilization and forced employee vacations to control costs and reduce output, but how to reduce the huge inventory level is a top priority for various LED manufacturers. .

As for the huge number of LCD TVs that consume LED backlighting, the global LED economic downturn in 2011 affected the global shipment of LED-backlit LCD TVs. In 2011, the total shipments of LCD TVs were also lowered from 220 million units to 203 million units. However, with the 2012 World Cup soccer event in Brazil and TV brand manufacturers launching low-priced LED-backlit TVs to stimulate demand, it is expected that the sales volume of LCD TVs in emerging markets is expected to increase. The backlight market will help.

In addition to project-oriented, profitable product areas, LED lighting has achieved significant development. The market for LED bulbs is still making progress in the Japanese market. As for professional lighting, plant and agricultural lighting (including UV hardening), freezer lighting, etc., more and more attention has been paid to the industry.

Looking forward to 2012, the dynamics of Korean companies are worth noting. Seoul Semiconductor has gradually reached an interactive license with the top five international LED manufacturers. After Samsung's LED is integrated into the Samsung Electronics Group, apart from being technically closely integrated with the semiconductor sector, it will produce its own LEDs. The proportion of mobile phone backlight and TV backlight supplied to Samsung Group will likely further increase. Together with the global distribution of the group's marketing channels, it is a strong opponent for all LED manufacturers to develop lighting brands.

The situation of oversupply is still difficult to solve in the short term, but the demand for LED terminal market continues to grow rapidly. Therefore, in 2012, depending on the performance of individual companies, we will enter the elimination competition for Evergrande. Therefore, only by increasing the technological content and the patent threshold will it be possible to survive in this knockout round.