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In-depth report on the LED industry: washed out the lead, the light is more dazzling

In-depth report on the LED industry: washed out the lead, the light is more dazzling

2021-08-04

The industry has been shuffled and the boom continues

 

   Since the second half of 2016, the chip-side production capacity has been tight and the LED industry's entire industry chain has continued to maintain a high boom. The reasons are two aspects: First, a large number of MOCVD machines that have been expanded between 2010 and 2011 have continued to be inefficient due to low efficiency. Being eliminated, the production capacity of new machines has not yet been released, which has caused the industry's production capacity to be tight; second, in recent years, local governments have withdrawn from MOCVD machine subsidies, causing small and medium-sized chip factories with weak hematopoietic capabilities to withdraw from the market, reducing industry production capacity. Under the influence of the two sides, the industry shed its burdens and went into battle lightly to welcome a new round of growth.

 

The pattern is becoming clearer, the demand is erupting, and the LED has not won enough

 

  Standing at this point in time, we believe that the LED market is far from over. The reasons are: 1. The trend of overall production capacity transfer to the mainland has been set. Chinese manufacturers are not only facing the domestic market, but should look at the growth of the industry and enterprises from the perspective of the international market. 2. The trend of increased concentration spreads from upstream to downstream, leading manufacturers in each link will benefit, and their growth is better than the industry average. 3. Downstream demand continues to be strong, exceeding market expectations. If the industry boom in the past year is driven by the supply side, then the next stage of industry growth is driven by demand. From lighting to display, new products and technologies are ushered in to stimulate broader demand.

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