LED production capacity in 2011 may be oversupply resulting in an oversupply of 30%

The 2011 LED production competition may cause oversupply and the global LED industry has entered a period of change. According to industry assessments, Taiwan’s LED industry output value in 2010 reached NT$151.6 billion, a growth of approximately 60%. The 2011 production value is expected to be a challenge of RMB201.5 billion, and the 2012 and 2013 output values ​​are expected to challenge a value of RMB270 billion each. 380 billion yuan, as for the fastest output value of the global LED industry in the 3 years will challenge the 50 billion US dollars mark, the regional industry competition has entered a white-hot.

In the past, Japanese lighting companies set off a price war and led LED lighting into the first year of take-off. Korean and Chinese companies also came under fire, which intensified regional industry competition and prompted Taiwanese LED companies to accelerate their lighting application layout. Due to fierce market competition, led by the Japanese government in 2010, LED bulb prices of first-tier manufacturers including Toshiba and Panasonic have been cut. Taiwan LED industry estimates that LED bulb prices will continue to slide in 2011 under the trend of reducing costs. , Large-size LCD backlight and LED lighting are seen as two-engined engines for growth in 2011. The industry estimates that the penetration rate of global LED lighting will reach 3% in 2010. In 2011, the LED lighting penetration rate is expected to reach 6 to 10%.

Due to the low utilization rate of Korean LED factories, the pace of production expansion has slowed significantly since the second half of 2010. On the contrary, Taiwan plants have benefited from the increased demand for TV backlighting from Korean factories, and increased LED purchases on Taiwan, prompting LED production capacity has grown significantly. However, Chinese LED industry is rushing to catch up. The upstream MOCVD machine platform may be opened in the second half of 2011. The industry is worried that once South Korea's LED plant technology improves, and Chinese manufacturers' capacity is also growing, 2011 is likely to set off oversupply capacity. In the competition, the LED market entered the competition for bargain prices, and the price drop may be more than 30%.

It is speculated that the LED output value of South Korea will continue to grow in the next 2 years. It is expected that the market share of LED packaging will increase to 24 to 25%, and the market share of LED packaging in Taiwan will remain unchanged. Compared with the LED packaging and module output value of each region in the world, Japanese manufacturers accounted for 31% of the market, ranking first, while Taiwan and South Korea respectively reached about 20%, Europe and the United States each accounted for about 10%, including South Korea. In 2009, the market share of the industry was only about 10%, but it quickly jumped to 20% in one year, which is in line with Taiwan's LED industry.