Profitability of LED chip manufacturers will recover in 2014

In the case of tight supply in 2014, the average selling price of LED chips is expected to stabilize. In 2011, the average selling price of LED chips fell by 40-50, fell by 30 in 2012-40,2013 decline narrowed to 15-Natural 20. This has LED to a serious erosion of profit margins among LED chip manufacturers. However, the downward trend of LDE chip average selling price is expected to stabilize in 2014, so the profitability of LED chip manufacturers is expected to recover. Thanks to the stable price environment, the profit margin of LED chip manufacturers is expected to rebound strongly in 2014. In 2011 and 2012, the average selling price of LED chips fell by 30-50. As the average selling price fell much faster than the cost, the gross profit margin of the industry shrank severely. However, the gross profit margin trend in 2014 should begin to improve rapidly. It is expected that the average selling price of LED chips will slow down to 10-15 (Year-on-year), Consistent with the speed of cost reduction.