Recently, some research institutions believe that due to the European debt crisis and the sluggish US economic situation, China's LED companies' export orders have dropped sharply. Since 2012, the LED market demand has slowed down, and the technology and price bottlenecks are still difficult to break through. The LED industry has been reshuffled and it is getting more and more powerful.
The analysts of China Business Intelligence Network believe that the direct result of the LED financing and investment boom of LED companies is overcapacity, which has caused LED companies to close down. At present, hundreds of chip production plants have been established in the five major industrial clusters of the Pearl River Delta, the Yangtze River Delta, the Northern Region, the Jiangxi Province of Fujian and other southern regions. The substantial expansion will lead to overcapacity of LED chips. It is expected that in the second half of 2012, the decline in the price of LED chips caused by overcapacity of domestic chips will continue to seriously affect the profit margin of enterprises, and the fundamentals of the market will not be completely improved.
A securities company recently released a research report saying that in the second and third quarter of this year, orders and demand rebounded to ease the decline in product prices and gross profit margins caused by overcapacity. In addition, LED lighting applications started at a lower-than-expected point, and domestic enterprises' breakthroughs in core technologies and core processes lag behind expectations and other uncertain factors.
The analysts of China Business Intelligence Network believe that the direct result of the LED financing and investment boom of LED companies is overcapacity, which has caused LED companies to close down. At present, hundreds of chip production plants have been established in the five major industrial clusters of the Pearl River Delta, the Yangtze River Delta, the Northern Region, the Jiangxi Province of Fujian and other southern regions. The substantial expansion will lead to overcapacity of LED chips. It is expected that in the second half of 2012, the decline in the price of LED chips caused by overcapacity of domestic chips will continue to seriously affect the profit margin of enterprises, and the fundamentals of the market will not be completely improved.
A securities company recently released a research report saying that in the second and third quarter of this year, orders and demand rebounded to ease the decline in product prices and gross profit margins caused by overcapacity. In addition, LED lighting applications started at a lower-than-expected point, and domestic enterprises' breakthroughs in core technologies and core processes lag behind expectations and other uncertain factors.
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