LED lighting market oversupply manufacturers increase inventory pressure

Due to the impact of inventory adjustment at the end of the month and the light demand of terminals, most LED manufacturers will see a significant decline in revenue in December by 10~15. According to statistics, in the case of low production capacity of various manufacturers, the supply of LED chips in 2011 is still high. 174 billion, while the demand for chips is only 129 billion, and the ratio of oversupply is as high as 35, so most LED manufacturers face huge inventory adjustment pressure in the second half of the year.
Looking forward to 2012, due to the fact that the capacity of the huge MOCVD machine has not been fully released, the oversupply situation of the overall industry is still difficult to solve. However, manufacturers with patent thresholds and high technology content still have the opportunity to tide over the difficulties in this difficult situation.
Supply side - adjusting inventory and reducing costs is a top priority. Recently, the terminal market demand has been affected by the global downturn, and many LED manufacturers' export orders have dropped sharply. At present, there are still some orders for commercial lighting and public sector projects. It is observed that many small and medium-sized LED manufacturers are facing a crisis of bankruptcy due to the decrease in export orders and the increasingly fierce competition environment. It also makes upstream manufacturers more cautious in choosing customers and billing amounts.
With cautious shipments and rising inventory levels, most manufacturers choose to reduce capacity utilization and force employees to take vacations to control costs and reduce output, but how to reduce the huge inventory level is still a top priority for LED manufacturers. .
Demand side - LCD TV backlight market waits for terminal application demand to emerge as a large number of LCD TV backlight market consumption. In 2011, due to the global economic downturn, global LED-backlit LCD TV (LEDTV) shipments were significantly lower than expected. In 2011, the total shipment of LCD TVs was also reduced from 220 million units to 203 million units.
However, with the large-scale events such as the 2012 World Cup in Brazil and TV brand manufacturers launching low-cost LED-backlit TVs to stimulate demand, it is expected that the number of LCD TVs sold in emerging markets is expected to increase. The backlight market will help.
Demand side - LED lighting market is growing slowly. Many governments and manufacturers are actively promoting the LED lighting market. The traditional commercial space lighting market is the largest in Europe and America. However, after the European debt crisis, the growth momentum of the European market is relatively slow. However, projects from the public sector or power plants have signs of growth. In particular, the number and scale of outdoor LED lighting and architectural lighting projects in the United States and Australia have continued to increase. The LED streetlight schemes and projects in the eastern United States have grown significantly, and the streetlights released by power plants in Australia have gradually taken shape.

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