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LED Chip Price is Stable Currently But Maybe Fall In H2 2013

2016-01-06 853

In the long term, only invalid production capacity in China can help the LED industry to return to supply and demand balance...


In accordance with statistics in Gold membership reports of LEDinside, Green Energy Division of the Global market research firm TrendForce, thanks to strong demand in the global LED lighting market in the first half of this year, the utilisation rate of MOCVD machines that the major chip manufacturers have installed and debugged shows rising trend.


The chip price has been stable this year, but with the increasing capacity of chip manufacturers, it remains to be seen whether the LED chip price will be falling in the second half of this year. But in the long term, only invalid production capacity in China can help LED industry to return to supply and demand balance.

Chinese Major LED Chip Manufacturers MOCVD Utilisation Rate

The rise of LED lighting market has directly stimulated the upstream chip market to achieve rapid demand growth this year, the Chinese chip makers who have originally specialised in the production of display applications actively adjust product strategy and improve the ratio of lighting chips in the product segment.


HC SemiTek and Silan Azure used to have chip for LED display as core business, now they adjust production capacity in response to increasing market demand for LED lighting chips, all newly added MOCVD equipments are put into use for the production of lighting chips. Overall, the growth in display market has slowed down since 2012, more competitive, more difficult to make profit for manufacturers, which also is one the reasons why the chip manufacturers switched to produce LED chips for the lighting application.


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