The data show that the 1 July 2011, China’s LED industry plans to add the total investment is still huge up 125.618 billion yuan, of which more than 40 percent of the funds is to invest in a number of industry sectors, and even the whole industry chain investment. More noteworthy is that the non-LED street light market into the LED industry investment has accounted for more than 45% the proportion of all investment projects.
“Chinese and relevant national policy support and subsidies to many companies, the influx of LED upstream industry, resulting in the disorderly expansion of production scale; the other hand, the downstream end of the market has not yet fully open, causing the upper reaches of digestion lag slow. “Hongyan Electric public relations manager, said Chen Xin.
LED street light market research institute LED inside report shows that in 2012, due to the huge capacity of the MOCVD machine to produce chips are still not fully released, the overall industry oversupply situation will continue.
He said that in China, in the context of overcapacity, industry consolidation is inevitable. From the LED of the whole industry chain analysis of the upstream business concentration is highest, the middle reaches of the relative concentration of the downstream application market is the most decentralized.
He seems in China, thanks to a pickup in demand of LED backlight and LED high bay lighting growth in demand, the domestic LED industry will appear in low and high momentum of development. But “production overcapacity, especially in this part of the chip overcapacity phenomenon is particularly evident in accordance with the current trend of development, at least until 2013 domestic LED production capacity to digest.”