LED industry situation is grim, industrial investment returns to rationality1

High-tech LED Industry Research Institute (GLII) New statistics show that in the first half of 2013, the newly-increased planned investment in China's LED industry was 37 billion yuan, down year on year. The investment hotspot of LED industry in 2013 has been transferred from the upstream Sapphire and epitaxial chip fields in the previous two years to the downstream applied lighting field. GLII statistics show that in the first half of 2013, the newly increased planned investment in LED lighting was 23. 2 billion, accounting for 63 of the total newly increased planned investment, down 19. New planned investment fell 16 GLII year-on-year. New statistics show that in the first half of 2013, the new planned investment in China's LED industry was 37 billion yuan, down 16 year-on-year, the lowest since 2010. At the beginning of 2010, the LED industry began to enter the stage of crazy investment, especially in the upstream epitaxial chip field. Due to the large amount of funds needed to be invested, billions or even tens of billions of projects can be found everywhere. However, after nearly two years of crazy investment, the LED market situation is quite severe. In the 2012 s, the production capacity of the trapped upstream epitaxial chip field was seriously overcapacity, and industrial investment returned to rationality. As the upstream investment hotspot has subsided, the current new planning of China's LED industry mainly comes from LED application fields, especially LED lighting. However, compared with LED upstream epitaxial chips, LED lighting requires a relatively small amount of investment, so the newly-added planned investment in China's LED industry continued to decline in the first half of 2013. LED lighting investment accounts for 63 compared with the same period in 2012, the distribution of newly-added planned investment structure in LED industry in the first half of 2013 has changed greatly. The planned investment in Sapphire has been greatly reduced to 1. 5 billion, with the proportion of investment falling from in the first half of 2012 to in 2013. The main reason is that the profitability of the Sapphire field is very weak under the impact of the price war. Originally, many planned projects either withdrew or moved to non-LED fields. Under such circumstances, Sapphire has no investment value. The main investment projects include Tiantong's 0. 3 billion Yuan LED sapphire substrate technical transformation project and Jingsheng electromechanical 1 billion LED sapphire crystal rod project. In the field of epitaxial chips, the overall domestic production capacity is still in excess, and many enterprises have not yet really released their production capacity. Affected by this, the large investment in the field of epitaxial chips in the first half of 2013 was very small, and only Aoyang Shunchang planned to invest 5. 5%. 1. 2 billion plus code LED epitaxial wafer and chip project. Due to the high water level of capacity utilization in the packaging field, the packaging enterprises have benefited from the sharp rise in LED demand in the first half of 2013, accelerating the expansion of capacity plans and the layout of LED lighting. The relatively large LED packaging planning project includes Ruifeng Optoelectronics Lingang 5. 0. 5 billion LED lighting packaging project, tiandian Optoelectronics Fujian Anxi 2 billion LED packaging project, etc. GLII believes that the LED packaging field continues to maintain a rational investment status. In the application field, LED lighting is still the main investment hotspot. Although the demand for LED lighting showed a trend of rapid growth in 2013, the new planning investment for LED lighting decreased year on year. GLII statistics show that in the first half of 2013, China's new planned investment in LED lighting was 23. 2 billion, down year on year. The main reason is that 2010- In 2012, several LED lighting planning projects closely followed the establishment and construction of LED upstream planning projects. Therefore, after two years of large-scale investment, LED lighting capacity has been fully established. At present, the demand for LED lighting products has not yet grown on a large scale, and enterprises are not eager to invest in LED lighting projects. At present, LED lighting investment has been in a rational investment State. The main projects include Xingyu's annual output of 500 thousand sets of LED lamps and supporting projects, and sunshine lighting's annual output of 60 million (Set)LED lighting products industrialization project, etc. GLII believes that the current investment in China's LED industry has become more rational, especially in the field of epitaxial chips and Sapphire, and the investment heat is also rapidly fading. However, with the rapid demand for LED lighting, LED packaging and LED matching materials still have investment value. Therefore, the planning investment of LED packaging and LED supporting materials will still be maintained in the next two years.