Investment frenzy caused by overcapacity of dimmable led downlight

Investment frenzy caused by overcapacity of dimmable led downlight

Senior Engineer Industrial Research Institute figures show: from January to July this year,the MOCVD equipment increased more than 200 units, is expected to 2012 LED chip production capacity in China is 10 times that of 2010. China’s MOCVD equipment hasreached 543 units, the count in the construction of 96 projects, dimmable led downlight, the total number will reach1642 units.

The number of devices greatly increased, but the overcapacity risk a sign of the materialaspects of overcapacity more worrying. The domestic LED sapphire substrate, with an annual capacity has reached 6.85 million in construction projects there are 41 investment amounted to 12.08 billion yuan. If the expansion is completed, the annual production capacity will rise to 101 million. 2011 the global LED sapphire substrate requirements ofless than 50 million, dimmable led downlight, less than 10 million domestic production can be a serious excesstrend has been apparent.

Last year, the market for LED lighting the rapid development of overly optimistic, resulting in excessive investment in the upstream LED industry, also led the industrytalent shortage, as well as structural overcapacity. The global LED lighting marketperformance as expected in the first half of this year, midstream packaging enterprises are faced with the awkward the semi-annual report of the domestic listed companies. dimmable led downlight, 
LED industry, the upstream sapphire substrate production overcapacity is most serious,the middle reaches of the packaging industry, although the production of relative surplus,but because of the worst anti-risk ability, it is expected that there will be nearly 10% of the enterprises at the end to be eliminated, while the downstream LED application as awhole the best performance.

Overcapacity has become the soft underbelly of the LED industry. Two years ago around the introduction of competing LED investment planning and construction projects, has been far beyond the actual market demand, led high bay, while the capacity of blind expansion of thepassion is still burning.