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LED industry investment is overheated

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LED industry investment is overheated

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  Recently, the LED industry's investment projects are constantly moving. How do you view this phenomenon and how will it affect the market? Through the combing of the major investment projects that have been publicized in the recent media, it can be seen that the investment scale of epitaxial chips is large in all links of the industrial chain. In this regard, the industry generally believes that market demand is the main driver, compared with packaging and applications, the chip is mainly affected by capital and market demand, the chip is the current and future demand for a larger part, but also in a state of short supply.

 
    On the other hand, regardless of domestic and foreign, investors are optimistic about the LED market in the future, especially in the commercial lighting market, have laid out China. In addition, many local government pushes are also factors that affect investment.
 
    What is the impact of the investment action on the LED market? According to industry insiders, from the perspective of supply and demand, the current supply shortage of the chip market is mainly driven by demand for notebook computers and LCD TV backlights. In the short term, there will be a shortage of supply, but in the next few years, the market will continue. The lighting market is critical. Some insiders believe that the development of the LED lighting market is difficult to predict in the next few years. Some insiders also said that based on the continuous improvement of LED technology, the cost is declining. Three to five years, the expectation of LED breakthrough in the commercial lighting market is more optimistic. The market is constantly changing. If the lighting market is not expected to be realized, and LED backlight TVs cannot break through 32, 38, 42 and other large-scale technical bottlenecks, the capital is still entering, then the chip market is likely to be oversupply.
 
    The general manager of Shenzhen LAMPLIC Technology Co., Ltd. said that the current supply and demand relationship is short-term, mainly due to the demand for LCD TV LED backlight. At present, domestic and international TV factories are actively deploying their own LED supply chain. In the first quarter of next year, the situation of short supply will be alleviated, but the production capacity will expand at a geometric multiple. In addition, the large-scale entry of LED into the lighting market may not be very fast. Therefore, it is likely that there will be a huge oversupply. The situation will affect many small and medium-sized packaging plants, application plants and chip factories in China.
 
    It can be seen that although the demand in the backlight market is strong at present, the future LED lighting market is crucial for the overheating of LED investment, and it is still necessary to wait and see whether the development of the LED backlight market will continue.