Excess supply LED output increased only 4% this year

In the first half part of the specifications of the LED chip price decline is as high as 20% ~ 30%, hit the LED industry. LEDinside estimates that global LED market as a whole in 2018 output value of 187. Only $9. 6 billion, compared with 2017 increased by 4%, the growth rate less than 11% of the predicted earlier this year, mainly because the industry supply and demand imbalances, excess supply caused the price of the LED to decline, and trade factors, also affect the final demand.

LEDinside, points out that although there are still a lot of China in 2018 LED manufacturers hope that through the expansion of production capacity to drive revenue growth, but because the overall industry face huge pressure prices decline, many vendors revenue growth than expected. Expansion has sharply after China LED chip manufacturers, terminal supply can't keep up with demand increasing speed, the imbalance between supply and demand in the peak industry, in the first half of this part of the specifications of the LED chip price decline range as high as 20% ~ 30%. Because the chip prices have and the cost of most of press close to, so in the short term to cuts the chance is not high.

as for the demand side, as a result of a trade war with China and emerging markets currency devaluation, LED manufacturers exported to North America and other emerging markets business was significantly affected. The United States recently announced the $200 billion of the tariff list, LED lighting and related products for more than 30, accounting for China's overall lighting products exports to the us, about 7 to an estimated $8 billion. These products will be from September 24, imposing a 10% tariff, and January 1, 2019 tariffs will rise to 25%.

LEDinside think, follow-up may lead to many foreign brand factory reduce the OEM orders for China, so China region including LED encapsulation and downstream of the lighting application vendors will be affected, leading to a sharp drop in demand for upstream of the LED chip.

tariff adjustment will affect the change of the global LED and lighting industry, but LEDinside believes that in the short term, the global LED lighting products and will continue to focus on made in China, because the surrounding components as well as the electroplating process, such as supply chain link takes root in China, in the short term supply relationship won't have too big change. As for Taiwan manufacturers, because most have set up manufacturing plants in China, so most will choose to semi-finished products assembly back to Taiwan, and exported to North America, in order to reduce tariffs. In the long term, with global layout of LED lighting manufacturers, because you can through the outside China factory direct export to reduce tariffs, will be more competitive advantage, a global market share is expected to increase.