Sapphire and LED Chip Prices Fell Sharply Transferred to The Downstream Sector Investment

After the experience of the investment boom , the influx of dumped goods price , the domestic LED industry is entering the era of meager profit . Under the huge investment in the past few years , the rapid growth of industrial scale length , but it also brings overcapacity , LED enterprises are facing fierce competition in survival of the fittest . Many in the industry believe that the industry will face a short-term or cold , reshuffle is inevitable .

The report shows that in 2011 the domestic total of 803 sets of MOCVD equipment in 2012 reached 917 units, an increase of 114 units. Despite major equipment investment accelerated, but this year the domestic chip output increased by only 20%, while prices fell by Sapphire 35%, LED chip prices fell 32 percent , a larger decline in the prices .

Engineering LED 's CEO Zhang Xiaofei , said upstream investment from the entire situation, epitaxial wafers investment growth fell from 46% last year to 10% this year , while investment growth in downstream applications last year was 21 % in 2012 , rising to 53% , so the LED industry investment focus from upstream to downstream .

Xiaofei also predicted that next year will be less than the epitaxial chip companies remaining 30 , three domestic MOCVD equipment manufacturers appear, but there will not be product sales, packaging factory will close down 20% of business failures downstream will speed up display , LED downlights , spotlights in the domestic market penetration will exceed 30%, LED lighting industry sales could reach 10 billion yuan.


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