LED demand growth stimulates companies to start capacity expansion plans

According to industry sources, the demand for indoor LED lighting was strong in the first half of 2013. LED enterprises said that there was a shortage of medium-power LED Indoor lighting products, including bulbs, light pipes and embedded lighting. Industry insiders estimate that China's LED lighting market will grow by 50. 5% in 2013. Therefore, some LED enterprises in China may restart capacity expansion. LED demand growth stimulates companies to start capacity expansion plans. Sanan Optoelectronics ( SananOptoelectronics) I have received 5 billion yuan from China Development Bank (About US $8. 15 million). The company announced a planned capital injection of 3. 3 billion yuan by the end of May, of which 2. 8 billion yuan will purchase new MOCVD (Metal organic chemical vapor deposition)Equipment. Recently, in Xiamen Sanan announced plans to add 20 new complete sets of equipment, the local government to provide 0. 1 billion yuan of financial subsidies. Taiwan's LED companies said that the market is still in oversupply, although some products have been in short supply, but capacity expansion may lead to another crisis in the industry. In the past, the LED lighting technology of Chinese enterprises was obviously behind that of their counterparts in Taiwan. However, Chinese enterprises at the Guangzhou International Lighting exhibition in 2013 (2013 GILE) The technology and products on display have improved a lot compared with their counterparts in Taiwan and have shown strong competitiveness. In 2012, China's LED industry suffered from oversupply and price competition, and the industry did not pay enough attention to LED lighting policies, so the company stopped its capacity expansion plan in 2013. However, since the beginning of this quarter, local governments such as Guangdong, Fujian, Jiangxi and Shanghai have announced new projects and subsidy programs.