China contribute 50% of total LED equipment spending III

<< Go Back Posted By:administrator on Apr 27,2015in Industry News

wellmax1.jpg


Other regions are showing a slowdown in investment. The leading players will still spend on capacity expansion and technologies but at a more disciplined pace. Japan and Taiwan are the 2 regions that remain committed to investing and adding new capacity.

Chinese LED industry is still supported by government subsidies, even though they are now more subdued. It is forecasted that the LED lighting market is big enough to consume all the new capacity coming online. It is more concerned about the mounting pressure of price erosion on LED component suppliers. With the rise of mid-power LED chips which are applicable to many of the lighting solutions, Chinese LED lighting suppliers will be able to gain a sizable share of the LED lighting market. That could drive out some of the value of high-power LED components, which is the sector that leading suppliers still dominate.

On the whole, the scale of investment in 2015 and 2016 is still within the range of market acceptance, given the even faster LED lighting growth forecast. The concern regarding oversupply could be eased somewhat, considering that real utilization rates at some of the older fabs are not particularly high.