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When will the LED industry get rid of the oversupply situation?

When the LED industry can get rid of the oversupply situation has attracted much attention from the market. The growth force of the number of new MOCVD machines added by China's LED chip factories in 2014 may be renewed, bringing pressure to the supply and demand of the LED industry again, including China's LED chip manufacturer Sanan and vertical integration factory Dehao Runda, both have plans to expand production, and Guoxing Optoelectronics is also expected to invest more than 0. 6 billion yuan in the second phase of the overweight LED chip project. Goldman Sachs Securities, a foreign capital, estimates that China's MOCVD market will have relative growth potential in 2014, which will be warmed by the general lighting demand. In addition, some local governments still have MOCVD machine subsidies, at the same time, Chinese manufacturers have increased their capital under the consideration of increasing production capacity. Goldman Sachs Securities has further revised the forecast of the number of new MOCVD units in China in 2014, which is expected to increase by 125 units, an annual increase. The industry is also closely observing whether the attitude of China's LED factories to increase MOCVD machines has turned positive and will bring pressure to supply and demand. According to statistics, San'an and Dehao Runda, the two major LED factories in China, are expected to add about 50 and 40 MOCVD machines in 2014, guoxing Optoelectronics also announced that its total investment in the second phase of the chip project is expected to be RMB 6. 0. 2 billion yuan, Guoxing Optoelectronics plans to invest 0. 5 billion yuan to raise funds. After the completion of the project, it is expected to produce 410 square meters of LED epitaxial wafers annually. 50 thousand tablets, 240. 50 thousand pieces, large and medium-sized chips 36. 0. 6 billion tablets, all epitaxial wafers are used to produce chips. In addition, including Tsinghua Tongfang, Huacan Optoelectronics, shilanmingxin and Yangzhou Zhongke semiconductor, there are plans to expand production capacity, and Taiwan Jingyuan plant Jingdian is also expected to add MOCVD machines in China, taiwan's vertical integration plant Lunda's MOCVD capacity in China will also be opened.

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