“In fact, LED application market has been in accordance with normal market rates on the rise, but the domestic LED production release is too fast.” Chen Bin, general manager of Guangdong Long traffic, said that the current solar led street light manufacturers inventory crisis is mainly concentrated in the upstream of the LED epitaxial wafers, midstream package and downstream level, basically-to-order, and not too much inventory crisis. However, the domestic LED upstream inventory crisis is not unique, including Taiwan, Japan and South Korea’s LED upstream manufacturers are facing tremendous pressure on the stock. Taiwan Epistar the third quarter of 2011 revenue of 42.6 billion New Taiwan dollars, quarter by 20 percent, the annual reduction of 26%, capacity utilization is only about 70%.
“In accordance with the beginning of the year LED upstream announced the investment plans, LED upstream capacity may advance overdraft more than three years of market growth in demand.” Jiangxi crystal and lighting company chairman Wang Min said upstream of the most Solar led street light manufacturers have discontinued at least 1/3 capacity and even some cut-off 50%; LED packaging and application of the middle and lower reaches of enterprises generally underemployed. As of the end of July 2011, the number of domestic MOCVD equipment in place there are 543 units; new planning investment amounted to 146.8 billion yuan as of September 30, the domestic LED high bay lighting industry, the third quarter of planning investment amounting to 28.3 billion yuan. The price plummeted It is reported that the upstream manufacturers of the domestic production of LED epitaxial wafers up to 60-80, with a certain size is almost 10. High inventory of LED chips from the direct benefits brought about by a straight line down the market price.