Next year or into two sides of the LED factory consolidation year

With the alliance between the LED giants of the two sides of the Suiyuan Optoelectronics and Sanan Optoelectronics, the merger of the Taiwanese LED factories also surfaced. Guangsheng will formally become Crystal Electronics Co., Ltd. after December 28, and Longda will also formally join Weilimeng on February 1, 2013, while the mainland LED factory has also been frequently blocked this year. The market expects that next year will become the year of integration of LED plants across the Taiwan Strait.

In the past two years, the LED industry in mainland China significantly expanded its production capacity, resulting in excess production capacity. The current situation has not changed, and the pressure of price competition has also reduced the profitability space. This will enable the LED industry to open up a consolidation wave and find it in a weak manner. Back to the industrial order. Take crystallizing and power planting as an example, the shortage of capacity of Jingdian in peak season will be improved after adding Guangsheng production capacity. At the same time, it will not amplify the production capacity of the whole industry and will help the LED industry to reduce production capacity.

The Chinese mainland's LED factory, this year has continued to spread the news of the closure of the tide, from the mainland LED leading factory Sanan and BDO Runda point of view, Sanan LED chip leading factory, plus the government's subsidies, there are still sufficient Funding competes with other LED plants. As the BDO Runda LED packaging plant, this year's operation is more difficult, facing a sharp decline in net interest rates, but also reported the status of government subsidies to subsidize performance.

Although Taiwan’s LED factories have better technical and financial constitutions, the increase in competition has led to profitable plights as excess capacity has not eased, and the consolidation trend has been difficult to reverse. The mainland LED factories used to rely on government subsidies. Large-scale expansion of the factory led to an imbalance in the supply and demand of the entire industry. As the global economy is uncertain, the LED industry is also mired in the slaughter. The closure of land plants is expected to become even more intense. The market expects that China's LED factories will be consolidated from 10 to less than 10, and next year is expected to be the year of integration of the LED industry across the Taiwan Strait.