2017 China LED chip production capacity will account for 54%

2017 LED chip industry ushered in a new wave of expansion peak. According to the LED Research Center (LED inside) released on the 24th analysis, since 2016 China's LED packaging manufacturers have expanded capacity, driven by LED chip demand growth, so China's LED chip manufacturers have restart the expansion plan. According to LED inside statistics, the production of LED chip MOCVD equipment, 2017 new global installation will reach 401 units (K465i models equivalent), which is the peak since 2011, the expansion of production capacity.

LED inside research associate storage in the super said, including San An, Hua Can, and Australia Yang Shunchang and other Chinese LED chip manufacturers, 2017 began a significant expansion plan, when these new production capacity is expected in place. In 2017 China MOCVD Production accounted for the proportion of the world will be as high as 54%.

Stored in the ultra-pointed out that China's LED chip manufacturers large-scale expansion, mainly in order to comply with the downstream LED packaging manufacturers increasing demand for chips. In addition, Guangdong and the Pearl River Delta past the main gathering for the LED business, but in recent years due to rising human and land costs, LED packaging manufacturers have to move to second-tier cities. And the local government in order to attract these relocation of the LED packaging manufacturers stationed, resorted to the preferential measures, making China's LED industry to reproduce the 2010 expansion frenzy.

It is noteworthy that the Chinese local government a new wave of subsidies is not simply only for the upstream LED chip business, the current local government will focus on the LED packaging industry and the surrounding supporting links, hoping to open up through the downstream LED sea, pull Upstream LED chip demand. Different from the past, the expansion of the Chinese manufacturers model, small and medium enterprises have rushed to set up LED chip factory to take subsidies. This wave of expansion frenzy mainly for China's first line of LED chips and packaging manufacturers to increase production capacity.

It’s analyzed that China's LED enterprises in government subsidies to support, continue to accelerate the pace of expansion, squeezed the global LED manufacturer profit margins. The latter have to scale down or expand the proportion of commissioned Chinese manufacturer foundry, the Chinese manufacturers HENGDA trend will be more obvious.