If you trace the source of the present stage of industrial excess, is precisely the cause of Great Leap Forward launched chip project since 2009. The financial tsunami in 2008, prompting the Government to adopt a looser fiscal policy, coupled with fiscal competition between local governments, Yangzhou, Wuhu, Tianjin and other cities in the local government subsidies to attract high-tech enterprises to the iconic LED puck lighting companies settled in the local, to form a stimulating local LED high bay industry growth pole, the outcome of the game is more than one place all over the same period launched a chip project.
However, after the financial tsunami of 2008 the countries of the quantitative easing monetary policy and active fiscal policy, and did not defuse the crisis, just delayed, so that two years after the formation of an even greater crisis. The expected market size of the LED industry, and scheduled arrival, but by the sharp drop in market demand in Europe after the European debt crisis, the LED puck lighting industry growth slowed down considerably. 2011, most of the upfront investment MOCVD machine installation and commissioning completed should the part of the machine over a period of time to try post-natal stage of mass production, but had sealed up to be open. More manufacturers machine back to not install direct resale to sell. MOCVD machines from everyone to loot the meat and potatoes into a hot potato and then become toxic assets.
Although the LED market leader in March show obvious signs of warming of the industry following figure shows the confidence index of the LED chip and packaging manufacturers in February has significantly improved. Encapsulated the confidence index in March and even restored to more than 4,000 points.