excess capacity crisis

The global LED industry excessive investment caused by excess capacity crisis emerged.
In February 22nd, the area of the LED chip of the largest investment photoelectric Saman ( 600703.SH ) released the results in 2011, the sales revenue growth in 102.56% of the cases, the main business LED chip 's gross margin was first appeared in 43.47% fell sharply.
Market research agency Displaysearch's latest report,luck2012 beginning in the third quarter of 2011 due to the LED backlight LCD TV sales decreased and LED lighting growth is slow, the 2011 LED appeared the situation of supply exceeding demand, supply and demand gap of up to 30%, and in 2012 second quarter forecast first, this problem has been alleviated but will continue its supply and demand, excess ratio achieve respectively 19% and 16%.
Samsung, LG Electronics, Lunda electronic LED industry giants, the fourth quarter of last year has been the production of LED MOCVD equipment capacity utilization rate down to 50%, while beginning in 2012 is expected to improve, but as the mainland photoelectric Saman, BDO, Tsinghua Tongfang LED capacity have been launched, global LED overcapacity would aggravate.
Clear inventory sequelae
An optoelectronic for inventory low-priced goods rejection, leading to the sharp decline in gross profit margin 43.47% LED chip
The areas of the LED chip has invested 3700000000 yuan, purchasing the MOCVD devices are all in place, is planning a directed through the issuance of 6300000000 yuan prospectus for an optoelectronic, 2011 LED industry emerging stage demand slowed down obviously to feel the pressure.
According to an optoelectronic 2011 Annual Report, by the end of 2011, its inventory scale from the beginning of the year 310000000 yuan rose to 918000000 yuan, compared to its sales revenue is only about 1700000000 yuan. Huge inventory pressure led to its 2010 to raise additional 2900000000 yuan investment in the Wuhu LED chip project procurement of 120 MOCVD equipment, the complete installation and put into use only 50. While the original new round of A shares directed to raise additional funds last year in September from 8000000000 yuan to 6300000000 yuan in compression.
Obviously this and LED industry entire industry demand insufficient, of which the most important is the LCD TV backlight and LED lighting product demand slowdown.
According to Displaysearch's latest research report,96325 the 2011 global LED LCD TV permeability first exceeded 50%, but did not reach the industry at the beginning of the year 60% of the expected. LED lighting products also began to gradually replace the traditional lighting products in the market share, but as a result of higher prices and a lot of the subsidy policy of the government has not reached the expected slowdown.
LCD TV market in China as an example, to the year 2011 only Hisense, Skyworth LED LCD TV penetration of over 50%, and some brands even have only about 30% LED permeability. Skyworth Group President Yang Dongwen told reporters," 2011 LED LCD TV because of backlight module price fall range is bigger, its growth rate is very fast, but from an overall point of view because the CCFL backlight module is substantially reduced, so the final LED permeability fails to meet expectations."
Because LED LCD TV backlight for LED grain overall shipments of more than 40%, so its demand growth situation affects the whole LED industry supply and demand.
In low demand at the same time, Samsung, LG and Taiwan regions of the LED giant from the beginning of 2010 have increased their MOCVD equipment procurement and installation of 2011, these new capacity is gradually released, began leading the entire industry overcapacity.
The Research Report of Displaysearch pointed out, the fourth quarter of 2011 global LED packaging grain supply and demand reached 210000000, only 148000000 hearts, excess supply ratio has reached 30%.
Therefore, many of the LED industry practitioners are beginning to depreciate considerably to clear out inventory. Set state science and technology under the LED specialized research institutions LEDinside report points out, the fourth quarter of 2011 due to out of stock, LED crystal average price decline of about 10% or so, while small and medium power LED reduction or even more than 20%, especially in lighting applications,luck2012 because LED manufacturer faces pressure on the stock, and for small and medium power LED price competition effect of high power LED quote, which appeared to glide apparently.