LEDinside, a LED industry research firm owned by TrendForce, said that due to the impact of end-of-month inventory adjustments and light demand from terminals, most LED manufacturers will experience a 10% to 15% decline in December revenue. LEDinside statistics, under the conditions of low production capacity of various manufacturers, LED chip supply in 2011 was still as high as 174 billion, while the chip demand was only 129 billion, oversupply ratio of up to 35%, so most LED manufacturers under Half a year faced with huge inventory adjustment pressures.
Looking forward to 2012, due to the fact that the huge production capacity of MOCVD machines is still not fully released, the oversupply of the entire industry is still difficult to resolve. However, manufacturers with patent thresholds and high technology still have the opportunity to tide over difficulties in this difficult situation.
Supply side - to adjust inventory and reduce costs as a matter of urgency In the recent end market demand is affected by the global recession, many LED manufacturers' export orders have fallen sharply. At present, there are still only a few orders for commercial lighting and public sector projects. According to LEDinside's observation, many small and medium sized LED manufacturers have been faced with the crisis of closing down before the Lunar New Year due to the decrease in export orders and the increasingly fierce competitive environment. It also made the upstream manufacturers more cautious in selecting customers and the amount of credit.
With cautious shipments and inventory levels rising steadily, most manufacturers have chosen to reduce capacity utilization and forced employee vacations to control costs and reduce output, but how to reduce the huge inventory level is a top priority for various LED manufacturers. .
Demand surface - LCD TV with LED backlight market waiting for terminal application demand emerging As for the consumption of a large number of LCD TV backlight market, in 2011 by the impact of the global economic downturn, the global LED-backlit LCD TV (LED TV) shipments significantly lower than expected. In 2011, the total shipments of LCD TVs were also lowered from 220 million units to 203 million units.
However, with the 2012 World Cup soccer event in Brazil and TV brand manufacturers launching low-priced LED-backlit TVs to stimulate demand, it is expected that the sales volume of LCD TVs in emerging markets is expected to increase. The backlight market will help.
The demand side - LED lighting market grows slowly, multinational governments and manufacturers actively promote the LED lighting market, the traditional commercial space lighting market in Europe and the United States mature market as the largest, but after the European debt crisis, the European market growth momentum relatively slow. However, projects from the public sector or power plants show signs of growth. In particular, the number and scale of outdoor LED lighting and architectural lighting projects in the United States, Australia, and other markets have continued to increase. The LED streetlight plans and projects in the eastern United States have clearly grown, and Australia has also gradually formed the street lamp signs released by power plants.
In addition to project-oriented, profitable product areas, LED lighting has achieved significant development. The market for LED bulbs is still making progress in the Japanese market. As for professional lighting, plant and agricultural lighting (including UV hardening), freezer lighting, and so on, more and more attention has been paid to the industry.
Looking ahead to 2012, the dynamics of Korean companies are worth noting. In addition to Seoul Semiconductor’s gradual licensing of interactions with the world’s top five LED manufacturers, Samsung’s LED integration into Samsung Electronics Group can be closely combined with the semiconductor sector in addition to technology. The proportion of self-manufactured LEDs supplied to Samsung's mobile phone backlight and TV backlight will likely further increase. Together with the global distribution of the group's marketing channels, it is a strong opponent for all LED manufacturers to develop lighting brands.
LEDinside believes that the oversupply situation is still difficult to solve in the short term, but the LED terminal market demand continues to grow rapidly. Therefore, in 2012, depending on the performance of individual companies, we will enter the elimination competition for Evergrande. Therefore, only by increasing the technological content and the patent threshold will it be possible to survive in this knockout round.
Looking forward to 2012, due to the fact that the huge production capacity of MOCVD machines is still not fully released, the oversupply of the entire industry is still difficult to resolve. However, manufacturers with patent thresholds and high technology still have the opportunity to tide over difficulties in this difficult situation.
Supply side - to adjust inventory and reduce costs as a matter of urgency In the recent end market demand is affected by the global recession, many LED manufacturers' export orders have fallen sharply. At present, there are still only a few orders for commercial lighting and public sector projects. According to LEDinside's observation, many small and medium sized LED manufacturers have been faced with the crisis of closing down before the Lunar New Year due to the decrease in export orders and the increasingly fierce competitive environment. It also made the upstream manufacturers more cautious in selecting customers and the amount of credit.
With cautious shipments and inventory levels rising steadily, most manufacturers have chosen to reduce capacity utilization and forced employee vacations to control costs and reduce output, but how to reduce the huge inventory level is a top priority for various LED manufacturers. .
Demand surface - LCD TV with LED backlight market waiting for terminal application demand emerging As for the consumption of a large number of LCD TV backlight market, in 2011 by the impact of the global economic downturn, the global LED-backlit LCD TV (LED TV) shipments significantly lower than expected. In 2011, the total shipments of LCD TVs were also lowered from 220 million units to 203 million units.
However, with the 2012 World Cup soccer event in Brazil and TV brand manufacturers launching low-priced LED-backlit TVs to stimulate demand, it is expected that the sales volume of LCD TVs in emerging markets is expected to increase. The backlight market will help.
The demand side - LED lighting market grows slowly, multinational governments and manufacturers actively promote the LED lighting market, the traditional commercial space lighting market in Europe and the United States mature market as the largest, but after the European debt crisis, the European market growth momentum relatively slow. However, projects from the public sector or power plants show signs of growth. In particular, the number and scale of outdoor LED lighting and architectural lighting projects in the United States, Australia, and other markets have continued to increase. The LED streetlight plans and projects in the eastern United States have clearly grown, and Australia has also gradually formed the street lamp signs released by power plants.
In addition to project-oriented, profitable product areas, LED lighting has achieved significant development. The market for LED bulbs is still making progress in the Japanese market. As for professional lighting, plant and agricultural lighting (including UV hardening), freezer lighting, and so on, more and more attention has been paid to the industry.
Looking ahead to 2012, the dynamics of Korean companies are worth noting. In addition to Seoul Semiconductor’s gradual licensing of interactions with the world’s top five LED manufacturers, Samsung’s LED integration into Samsung Electronics Group can be closely combined with the semiconductor sector in addition to technology. The proportion of self-manufactured LEDs supplied to Samsung's mobile phone backlight and TV backlight will likely further increase. Together with the global distribution of the group's marketing channels, it is a strong opponent for all LED manufacturers to develop lighting brands.
LEDinside believes that the oversupply situation is still difficult to solve in the short term, but the LED terminal market demand continues to grow rapidly. Therefore, in 2012, depending on the performance of individual companies, we will enter the elimination competition for Evergrande. Therefore, only by increasing the technological content and the patent threshold will it be possible to survive in this knockout round.
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