Price war started LED station factory growth in the second half of the year to be observed

LED lighting is in the painful period of price competition. TV backlights are motivated by the lack of international large-scale events. The demand for LED factories is relatively flat. The operation of LED factories is facing a period of ignorance. Although major manufacturers are expecting demand in the peak season, Yiguang and Ronda The expansion of production in the new century this year has been conservative.

Recently, LED executives have released the tone of the second half of the year at the shareholders' meeting or the Taipei International Lighting Exhibition, including Chairman of the New Century Zhong Kuanren, Chairman of Longda Su Fengzheng, Chairman of Everlight Ye Haofu, etc. In the third quarter, the LED lighting orders have been very strong, but they are in the stage of “price-cutting”. There are still peak season demand in the second half of the year. However, under the many variables of the mainland supply chain and lower prices, the growth rate remains to be seen.

Also, because the LED lighting environment has changed too fast, this year's major LED factories have expanded their production from the capital expenditures to the conservative. Su Feng, chairman of Ronda, believes that the international brand will start a price war. It is estimated that the price reduction effect will continue from the second half of this year to next year. He will watch the demand for LED lighting in the second half of the year.

Ronda's current packaging capacity is 1.5 billion, the backlight and lighting account for 60% and 40%, and the epitaxial wafer production capacity is currently about 300,000. Ronda originally planned to increase the epitaxial wafer production capacity to 350,000 pieces before the middle of the year. The expansion of production by 16% has now been revised to determine the time point at which production capacity is based on market conditions.

The package leader, Everlight, also released the pace of conservative expansion at the shareholders meeting. Ye Weifu, chairman of Everlight, said that LED lighting is too variable and the environment is changing too fast. The growth rate of the third quarter depends on the mainland supply chain. The situation, therefore, the expansion of Yiguang this year will be more conservative, the new copper factory will lock in niche car and security products, is expected to be launched at the end of this year.

In the new century, the capital expenditure of the chip factory in the new century will drop to NT$300 million (equivalent to RMB 60.69 million yuan), and no new machine will be introduced. From June, through the equipment transformation, the epitaxial film will be removed from the 2 The inch is changed to 4 inches. Although it will temporarily affect the capacity in the third quarter, it can gradually increase the scale of production under the mode of controlling capital expenditure.

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