China's LED chip leader Sanan Optoelectronics and Huacan Optoelectronics have successively lowered the price of some LED chips, and announced that the LED chip price increase period lasting for one and a half years has officially ended. China's LED chip leader Sanan Optoelectronics and Huacan Optoelectronics have successively lowered the price of some LED chips, and announced that the LED chip price increase period lasting for one and a half years has officially ended. LEDInside believes that the price of LED chips is loose, which indicates that the supply of LED chips in the whole industry has been reversed. In 2018, the LED chip market will resume supply and demand balance, but with the LED chip manufacturers The new capacity continues to be delivered, and the phased oversupply will not be ruled out in the next two years. Wang Fei, chief analyst of LEDinside, said that the price of LED chips in China plummeted in 2015, accelerating the transfer of global LED chip orders to China, which led to a sharp increase in orders from Chinese manufacturers in 2016, and they have expanded their capital expenditures accordingly. Compared with the global manufacturers in other regions to gradually reduce investment, and even exit the LED industry, Chinese manufacturers are still the most active investment in the LED industry. In 2017, the main MOCVD equipment expansion was from Chinese manufacturers Sanan Optoelectronics, Huacan Optoelectronics and Aoyang Shunchang. If calculated by the production capacity of 2-inch epitaxial wafers, Sanan, Huacan and Aoyang Shunchang will increase by 1.3 million pieces, 1 million pieces and 830,000 pieces respectively, becoming the top three LED chip factories in China. With the increase in new capacity at the end of 2017, the supply and demand of the LED chip market has gradually returned to equilibrium. Therefore, manufacturers such as Sanan and Huacan have chosen to make strategic price adjustments for the increasingly fierce lighting and display chips in the near future. Prior to this, the price of the chip has remained high for one and a half years. After this round of adjustment, the price of LED chips is expected to enter a stable or small adjustment platform period. Wang Fei further pointed out that after the current round of chip manufacturers' large expansion, the capacity of the three leading manufacturers will gradually exceed the threshold of 1 million pieces per month, and the concentration of LED chip capacity will increase significantly, which is expected to form a better supply structure and avoid prices. Excessive competition. In addition, the production capacity of the new production capacity is higher than that of the previous generation machine (K465i generation), which can reduce the production cost by 30%, which will strengthen the cost competitiveness of leading manufacturers such as Sanan and Huacan, and cannot upgrade the equipment. Chip makers will accelerate their marginalization.
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