LED wafer price reduction San'an Optoelectronics Huacan Optoelectronics Aoyang Shunchang Sanqiang

Mainland Sanan Optoelectronics and Huacan optoelectronics have recently lowered the price of some LED chips for a period of 1. The five-year LED wafer price increase cycle officially ended. TrendForceLED Research believes that the demand for LED wafers has reversed and 2018 will enter the stage of supply and demand balance. Mainland Sanan Optoelectronics and Huacan optoelectronics have recently lowered the price of some LED chips for a period of 1. The five-year LED wafer price increase cycle officially ended. TrendForceLED Research believes that the demand for LED wafers has reversed and 2018 will enter the stage of supply and demand balance. After this round of expansion, the three major epitaxial factories in the mainland will step into the top three state from the first year of the two universities, and the three major factories of Sanan, Huacan and Aoyang Shunchang will have a stable market share of more than half, land-based plants that are unable to update their equipment may be marginalized. Based on the production capacity of 2-inch epitaxial wafers, Sanan, Huacan and Aoyang Shunchang increased by 1. 3 million, 1 million and 830 thousand respectively, ranking the top three LED wafer factories in mainland China, the market share reached 32, 20 and 12 respectively, a significant increase from 27, 13 and 3 in 2016. The proportion of San'an city exceeded 30% for the first time, and the mainland's leijing factory evolved from the first year of the two universities to the Three Kingdoms. However, with the gradual opening of new production capacity at the end of this year, the supply and demand of LED chips have gradually returned to balance, allowing manufacturers such as Sanan and Huacan to choose strategic price adjustments for lighting and display chips in the near future. Prior to this, chip prices have remained high for a year and a half. After this round of adjustment, LED chip prices are expected to enter a stable or slightly adjusted platform period. Wang Fei, chief analyst of LEDinside, said that the sharp drop in LED chip prices in mainland China in 2015 has accelerated the transfer of LED chip orders to China, resulting in a sharp increase in 2016 orders from Chinese manufacturers and an expansion of capital expenditure. Compared with the trend that manufacturers in other regions gradually reduce their investment or even withdraw from the LED industry, Chinese manufacturers are still actively investing in the LED industry, in 2017, the main MOCVD equipment expansion came from Sanan, Huacan and Aoyang Shunchang. Wang Fei said that after this large-scale expansion, the production capacity of the three leading manufacturers will gradually cross the threshold of 1 million pieces per month, and the concentration of LED wafer production capacity will increase significantly. It is expected to form a better supply structure and avoid excessive price competition. In addition, the production efficiency of the new capacity is higher than that of the previous generation (K465i generation) Higher, which can reduce the production cost by about 30%, will strengthen the cost competitiveness of leading manufacturers such as Sanan and Huacan, and chip manufacturers that are unable to update their equipment will accelerate their marginalization. (