LED lighting market oversupply manufacturers inventory pressure increases

Due to the impact of inventory adjustment at the end of the month and light demand for terminals, the revenue of most LED manufacturers will drop by 10 ~ in December ~ 15. According to statistics, under the condition of low production capacity growth rate of various manufacturers, the supply of LED chips in 2011 is still as high as 174 billion, while the demand for chips is only 129 billion, with an oversupply rate of 35, therefore, most LED manufacturers face huge inventory adjustment pressure in the second half of the year. Looking forward to 2012, as the huge production capacity of MOCVD machines has not yet been fully released, the oversupply of the overall industry is still difficult to solve. However, manufacturers with patent thresholds and high-tech content still have the opportunity to tide over the difficulties. Supply side- Adjusting inventory and reducing costs is a top priority. Recently, the demand in the terminal market has been affected by the downturn, and many LED manufacturers' export orders have dropped sharply. At present, only commercial lighting and public sector projects still have some orders. According to observations, many small and medium-sized LED manufacturers are still facing the crisis of bankruptcy before the Lunar New Year due to the reduction of export orders and the increasingly fierce competitive environment. It also makes upstream manufacturers more cautious in selecting customers and lending amounts. Under the condition of cautious shipment and rising inventory level, most manufacturers choose to reduce the utilization rate of production capacity and force employees to take vacations to control costs and reduce output, however, how to reduce the huge inventory water level is still the top priority of various LED manufacturers. Demand side- The LED backlight market for LCD TVs is waiting for the demand for terminal applications to emerge. As for the LCD TV backlight market that consumes a large number of LEDs, in 2011, affected by the economic downturn, LED backlit LCD TVs (LEDTV)Shipments are obviously not as good as expected. The total volume of LCD TV shipments in 2011 also increased from 2. 0. 2 billion units down to 2. 0. 3 billion units. However, with major events including the Brazil World Cup in 2012, and TV brand manufacturers have launched low-cost LED backlight TV sets to stimulate demand, it is expected that the sales volume of LCD TVs in emerging markets is expected to increase, it will be helpful to the LED backlight market. Demand side- The LED lighting market is growing slowly. Many governments and manufacturers are actively promoting the LED lighting market. The traditional commercial space lighting market is dominated by mature markets in Europe and the United States. However, after the European debt crisis, the growth momentum of the European market has slowed down relatively. However, projects from the public sector or power plants show signs of growth. In particular, the number and scale of outdoor LED lighting and architectural lighting projects in the United States and Australia markets are continuously increasing, and the LED street lamp plans and projects in the eastern United States are showing significant growth, in Australia, there are also Street Lights released by power plants that are gradually taking shape.