Overcapacity caused by the crisis in the garden led lighting industry

Overcapacity caused by the crisis in the garden led lighting industry

This stage LED production capacity has been in the cyclical and structural excess state, which makes LED enterprises have been a polarization of the situation. To spend three to five years for a large number of SMEs in the middle and lower reaches of the industrytrough, garden led lighting, probably would have already run out of funds.

In contrast, the days of the industry leading enterprises better than many companiesalready on the market, there are sufficient funds to do support. The latest data show thatnine local industry of LED-based listed companies, has completed a joint-stock reform of the LED enterprises have hundreds of.

On the other hand, garden led lighting, support for large enterprises, there are local government financial subsidies and large orders. 3 An optical investment in Wuhu, for example, according tothe Investment Agreement, the Wuhu city government to give 3 An optical to the purchaseof 200 sets of MOCVD equipment subsidies, 3 An optical device subsidies amounting to525 million yuan in 2010. As investment conditions attached 3 An optical still in Wuhu forthe order of 600 million yuan of LED lights within three years from 2010 onwards, led high bay, each year the purchase of 200 million yuan.

The LED industry is not only faced with a pattern of shuffling, but also because of overcapacity and facing the crisis of falling profits. Data shows that, fromJanuary to August this year, the upstream sapphire substrate prices have dropped from$ 35 / piece to 13-15 U.S. dollars / piece, an average reduction of more than 50%; an average reduction of the LED chip and the middle reaches of packaging products were 25 and 23% of downstream lighting applications, an average reduction of 21%, garden led lighting, but thehighest part of the light string 75 percent drop. Compared with the 2010 a good year, this year’s market chilly.

Upstream and downstream enterprises to appreciate better the market is merciless.Shenzhen LED company owner has been unable to sit still, he admits: “This year we have from the TV backlight to lighting products. If the last two years can not be listed orcan not get investment, garden led lighting, will likely not survive.” This is just small and medium enterprises a microcosm. If the layout of the MOCVD continue to expand capacity to continue to expand, the killings began in earnest for SMEs.