LED industry In-depth report: Wash the lead, the light is more dazzling

Since the second half of 2016, the tight production capacity at the chip end has created a continuous high prosperity for the entire LED industry chain, due to two reasons: first, 2010 ~ A large number of MOCVD machines expanded in 2011 were gradually eliminated due to low efficiency, and the production capacity of new machines has not yet been released, causing a shortage of production capacity in the whole industry; Second, in recent years, local governments have withdrawn from the MO industry and reshuffled it. The prosperity has continued. Since the second half of 2016, the tight production capacity of the chip side has created a high prosperity for the entire industrial chain of the LED industry. The reasons lie in two aspects: one is 2010 ~ A large number of MOCVD machines expanded in 2011 were gradually eliminated due to low efficiency, and the production capacity of new machines has not yet been released, causing a shortage of production capacity in the whole industry; Second, in recent years, local governments have withdrawn from MOCVD machine subsidies, resulting in the withdrawal of small and medium-sized chip factories with weak hematopoietic ability from the market, reducing industry production capacity. Under the influence of the hatchback, the industry smashed the baggage and went lightly to meet a new round of growth. The pattern is getting clearer, the demand is exploding, and the LED has not won enough to stand at this point in time. We believe that the LED market is far from over. The reasons are as follows: 1. The trend of the overall capacity transfer to the mainland has been determined. 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 increasing concentration spreads from upstream to downstream, and the top manufacturers in each link will benefit, and the growth is better than the industry average. 3. Downstream demand continued to be strong, exceeding market expectations. If the industry boom in the past year is driven by the supply side, then the industry growth in the next stage will be dominated by demand. From lighting to display, new products and technologies will be ushered in, stimulate broader demand.