LED chip prices are gradually slowing down

By the Chinese chip factory in 2010 ~ Affected by the large-scale expansion of production in 2011, the market capacity is in a state of serious oversupply. Under the conditions of price competition of various factories and the deficit of land factories, the market price of LED chips has dropped sharply in the past two years, last year decline amplitude more up to 40 but this year after backlight and lighting twin-engine drive and an excess of supply over demand status get relieve this year 1st season and 2nd season LED chip price were only fell 3 ~ 5 prospect 3rd season and 4th season also will maintain amplitude quite of decline year LED chip price put 10 ~ Natural 20. The outlook for the LED industry in 2010 is still promising, and local governments in China are active in 2010 ~ In 2011, the MOCVD machine subsidy policy was successively introduced, and China's chip factories also carried out a large expansion of production, resulting in an oversupply of LED chips. Each factory began to compete in price, and the land factory also adopted a strategy of deficit grab, as a result, the market price of LED chips has plummeted and the era of high gross profit margin is no longer seen. As a result, the LED industry has entered a dark period of up to 2 years. Last year, the decline of LED chips in the whole year was as high as 40, A number of chip factories also showed losses, including Jingdian, New Century, Yuyuan, Dingyuan, Huashang, Taigu and so on. Although the operating performance of various LED factories was still poor last year, the market conditions of the LED industry have begun to see a glimmer of light, mainly due to the rapid increase in the penetration rate of LEDTV to more than 75, and the market demand began to gradually return to temperature. After entering 2013, the price decline of LED chips began to slow down after factors such as the continuous increase of LEDTV penetration rate, the wide promotion of direct LEDTV in the market, and the rapid growth of LED lighting demand. Qi Yuan said that the decline in product prices is an inevitable trend, but compared with the sharp decline in LED chip prices last year and the single-quarter decline as high as double digits, the price performance this year has been significantly stable, this year 1st season and 2nd season ASP price decline are only about in 3 ~ 5 even though the LED backlight market in the second half still some noise but estimation 3rd season and 4th season not will such as last year the same period fell status. PIDA industry analyst Lu introduced Xu also think last year each a season LED chip prices fell situation even though the market had forecast that last year 4th season will be improved, however, in the case of clearing stocks and rushing performance of various factories, the price of LED chips still unexpectedly fell sharply in the quarter, and many companies reported that their gross profit and profit performance were not as good as revenue last year, and this phenomenon is reflected in this year, so that the price competition situation of various factories is not as serious as last year. In the first half of the year, the quarterly price drop is about 3 ~ 5 and Prospect 3rd season and 4th season also will maintain quite amplitude of decline also are in 3 ~ About 5. In addition, CLSA also believes that the supply and demand status of LED chips has indeed improved this year. In response to the average price performance of LED chips this year, Lyon said, 1st season and 2nd season respectively 6 and 3 ~ 5 Decline prediction this year 3rd season and 4th season decline the were is reduced to 3.