LED manufacturers have expanded their production capacity and fully attacked the market

Although the supply of some LED products was tight due to the adjustment of production capacity and the expansion of demand for terminal applications in the LED industry in 2016, the mainland LED manufacturers continued to expand their production capacity in 2017. including LED packaging and grain manufacturers, all of them have invested in an arms race, which will cast a variable on the development of the LED industry. LED industry pointed out that the penetration rate of LED lighting market will enter its peak in 2020. LED manufacturers have expanded their production capacity and occupied the market in an all-round way. it is expected that this wave of LED expansion will not slow down until 2018. Supply chain operators said that various LED manufacturers are competing to expand their production capacity. The annual growth rate of LED lighting output value and shipments is 2 digits. It is expected that the average expansion in 2017 will reach 30. as the mainstream LED market including 2835 specifications continues to grow, as the cost of upstream raw materials continues to rise, mainland LED packaging and grain factories have raised prices. Recently, mainland LED companies including Guoxing, zhaochi and Hongli have announced an increase of 0. 2W and 0. 5W product quotation, but because the original price is already low, the price increase of LED industry is still quite limited for improving profits. However, as LED industry no longer cuts sharply to seize the market share, the industry expects that the price of LED products in 2017 is expected to maintain a slow decline. It is worth noting that in response to the growth of LED applications such as general LED lighting, large-size display screens and the automotive market, mainland LED packaging factories have expanded their production and begun to emphasize the differentiation of LED products. by expanding the scale of production capacity, strengthening the market influence and expanding the market share of LED factories, the industry expects this wave of LED production expansion to last until the end of 2017. the production capacity arms race is expected to come to an end in 2018 and will meet the replacement peak of LED lighting market demand in 2020. Mainland LED package leading plant MLS 3rd season LED package months production capacity has reached 50 billion a to 2-inch wafer conversion monthly wafer procurement about 1. 2 million ~ 1. 3 million pieces, it is estimated that the production capacity will climb to 60 billion by the end of 2016 ~ 70 billion, plus the launch of the Jiangxi Ji'an plant expansion plan, and fully put into production before 2019, when the monthly production capacity will climb to 150 billion, the scale of production capacity is a three-level jump. LED packaging factory Guoxing Optoelectronics is not to be outdone. In 2016, it has taken turns to invest in three expansion plans. At present, it has increased its production capacity by more than 40. In 2017, it will continue to increase its production capacity and is expected to expand its operation scale again. The mainland LED chip factory has also cooperated with the large-scale expansion of production. The industry has reported that the mainland LED leading factory San'an Optoelectronics has ordered 17 new machines from the US equipment manufacturer Veeco, which is equivalent to 34 existing 2-inch machines. it is expected to release production capacity in 2017. As for Huacan Optoelectronics, it has invested RMB 6 billion in Yiwu, Zhejiang Province. The expansion of production capacity is even better than that of San'an. The new production capacity will be put into production of LED epitaxial, grain and Sapphire processing. LED industry pointed out that with the expansion of production capacity in Sanan, Huacan, Aoyang Shunchang and Hefei rainbow Blu-ray, and the gradual transfer of equipment, it is estimated that the scale of MOCVD equipment in mainland China will exceed 230 units in 2017. at that time, the mainland LED grain production capacity will account for more than 50%.