Market 'cold years' LED intelligent street lamp should strictly control the upstream suppliers

The market in 2019; Cold years; , resulting in industry a series of chain reaction, is conduction layer upon layer, and will eventually be fully affected upstream of the supply chain. The future for a long time, relative to the LED display distributors and terminal manufacturers, is located in the upstream of the LED raw materials supplier risk

the market in 2019; The cold one year; , bring a series of chain reaction to the industry, the chain reaction is one layer at a time, and will eventually spread to the upstream supply chain. For a long time, compared with the LED display distributors and terminal manufacturers, is located in the upstream of the LED raw materials supplier is facing the biggest risk and the most difficult to control and manage the situation. hellip。 And, in the downstream industry chain; Many of the participants. LED display, by contrast, the upstream raw material supply chain is now mostly is very large, especially the LED chip and other core components, these components has long been dominated by large enterprises, with strong ability to resist risks. However, for the supply of raw materials; The faucet; For us, in the next 2 to 3 years of business competition, the core task is not to expand capacity and take orders, but control of the two big risks in the process of market operation. At present, mainly concentrated in two aspects: one is how to avoid falling into capacity expansion in the past few years; Stop immediately after the production of the production. Embarrassed, cause the investment; Second, the suppliers; Payment and settlement of goods; Should adjust mode, in order to avoid because of some downstream led display manufacturers operating difficulties and can't take a lot of money. Why should remind many suppliers in the peak season in the second half of 2019 should pay attention to? Risk control. 。 The reason is not complex. First, so far, the light emitting diode display terminal market there have been no any obvious signs of a reversal of the overall trend. In this case, some bad management, no market competitive, film and television companies are integrated is normal. Second, in the past few years, under the impetus of the downstream market rebound began a new round of expansion LED display supplier. Now they are into production and harvest period, but they are facing downstream demand weakened, hellip. hellip。 These tourist chip industry, for example, as the personage inside course of study says,; From the last time the capacity expansion to the current market consumption demand has fallen, there are at least two years of time interval. ； This will not only extend the substantial investment return period, also aggravates the strain of enterprise's cash flow. In response, some chip suppliers had to take measures, such as phasing out production and limit production, in order to avoid the low drag on the entire panel industry. Some companies even choose closed factories directly. In December 2018, * st DE hao's management drafted a close light pole light-emitting diode chip manufacturer factory plan. Based on the business situation in 2019, in July 2019, * ST bdo's board of directors finally agreed to and authorization management steadily implemented as planned. Shut down and transfer; In order to processing chip manufacturing business as soon as possible, try to completed in the third quarter of 2019. Huaneng photoelectric in the semi-annual report also mentioned that the company said it would adjust competition and production strategy, actively reduce the output of low-end products, in the first half of the year will light emitting diode chip capacity utilization rate dropped to 62. 5%, the corresponding impact the cost during the reporting period of single chip, reflected in the increase of the average cost of single chip. 。 。 In this case, the enterprise should be how to deal with? Yield reduction is certain. In addition, the shift of excess production capacity to the new display areas, such as miniature leds/miniature leds, is not a good idea. Find another way; 。 In fact, with the exception of chips and light emitting diode display upstream suppliers such as encapsulation, there are a lot of printed circuit board and aluminum company in the last round of industrial expansion to expand the production capacity. Next, they will face not only to reduce the number of orders for real difficulties, will also face the adjustment of excess capacity and processing. Therefore, in the process of management and development in the future, we must strengthen and increase of risk control!