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Prices so that half of the LED chip manufacturers bankruptcy

  According to the Reuters website reported on Sunday in the Chinese market, production overcapacity and falling prices, or will declare the end of the half of the LED panel chip manufacturers coming. A few large manufacturers with state-owned background is likely to ride out the storm.
  Small businesses go bankrupt
  Industry analysts pointed out that the global TV and computer sales decline may prompt the LED panel chip prices fell by 20%, while for small LED chip maker, industry consolidation or closure of the only choice.
  The analyst also pointed out that the can continue to enjoy government subsidies and incentives policy preferences, a small number of LED chip manufacturing the large state-owned enterprises are likely to ride out this storm, including China's top LED chip manufacturers the Xiamen safety photoelectric (Sanan Optoelectronics,) Elec Co., Ltd. and Guangdong (Elec-Tech International, Co., Ltd., hereinafter referred to as "BDO Runda"), the former is the market value of up to $ 2.8 billion.
  Anne - Lee (Anne Lee), an analyst at investment institutions Nomura (Nomura,) said: "China hopes that these large-scale state-owned enterprises in the process of industrial restructuring to survive."
  For most of the LED chip manufacturers, the Chinese government is slowly tightened the incentive policies, including tax breaks, free land and more than 1.6 billion U.S. dollars of the LED chip production equipment funds. These policies have been more than three years to protect the sound development of the LED chip manufacturing industry in China.
  Proview International Holdings Limited (Proview International Holdings Ltd., referred to as "Proview International") is also deep in the quagmire of the LED prices and fierce competition in the market. Hangzhou Silan Microelectronics Co., Ltd. (Hangzhou Silan Microelectronics, Co., hereinafter referred to as "Silan") and Foshan country star power Corporation (the Foshan NationStar Optoelectronics, Co., Ltd., hereinafter referred to as "Foshan Kwok-sing") including the performance of other LED manufacturers are also subject to the serious impact of market competition. Proview International, a subsidiary in mainland China, Shenzhen Proview iPad trademark registered in the Chinese market to expand the legal battle with Apple.
  As of last Friday's close, Hangzhou Silan's stock fell 2.9 percent in regular trading of the Shanghai Stock Exchange, to close at 10.10 yuan per share; Foshan country star shares in the Shenzhen Stock Exchange's regular trading down 1 percent, to close at 8.10 yuan per share. The two company's share price in the past year, the cumulative decline of more than 30%.
  Industry observers have pointed out that many LED chip factory is operating 50% of production capacity, the use of support funds to buy about 700 chip processing equipment industry, the boom in 2009 and 2010, half idle.
  According to analysts' estimates, in the past year, the production capacity surplus has led to hundreds of small LED lighting companies shuttered.
  Executive Vice President of China Semiconductor Lighting Industry Association (semiconductor lighting association) Baoen Zhong said: "China's monetary policy does not give enough support to SMEs. We may see more factories close to collapse."
  Large enterprises were heavily subsidized
  The Chinese Government to implement the subsidy policy has helped China LED Module Packaging cent of the global market share last year, an increase of twice the growth to 6 percent from 2 percent in 2010. China's LED components, including chips, cables and conductive adhesive.
Xiamen three safety photoelectric 2011 net profit doubled more than doubled to 936 million yuan (U.S. $ 1.4752 billion U.S. dollars, analysts pointed out that, thanks to about 1.8 billion yuan in subsidies from the government. Guangdong Germany the Runda 2011 net profit year-on-year turn tripled to 392.3 million yuan.
  Analysts said these large-scale LED companies held a total of nearly 2 billion yuan in cash, it can be intensified in the case of weak market demand to expand production capacity, so that China plans to launch today by the Government to provide financial support to the LED lighting project to get a bigger share.
  UBS (UBS) said in a report, Guangdong Germany Runda added 50 for the production of LED chip, metal organic chemical vapor deposition (MOVCD) equipment, and this year will also increase to 100. Saman the optoelectronic also plans to increase the number of such devices.
  The Chinese Ministry of Science and Technology said earlier that the plan to 2015 so that the scale of China's LED industry to expand to 500 billion yuan (about 79.1 billion U.S. dollars). The analyst pointed out that in 2011, the size of this industry in China 31 billion yuan, industry consolidation has been imperative.
  The weaker the collapse of the company will benefit a larger scale by the Government to support the development of LED companies. In many Asian competitors report profit declines and losses, these LED large companies will be better able to Epistar in Taiwan and South Korea LGInnotek regional competitors to compete.
Next year the trend is still hard to optimistic
  The market is cyclical decline of the LED chip demand and the market remains a 50% oversupply situation will continue to give the price of the LED chip and profitability impact.
  Earlier this year, the market demand for LED chips, seasonal growth, but market fundamentals are still weak.
According to a report by the UBS, Taiwan LED makers April revenues ring than the growth rate dropped to 3%, less than 12 percent in March. These companies in the global packaged LED chip market share of about 19%.
 Jerry - Cai (Jerry Tsai), an analyst at HSBC, said: "With the improvement of the backlight technology, the TV and the LED display will be reduced, the market will usher in the real needs of LED product prices this year again decreased by 20%, then the industry will face next year, greater difficulty can imagine.