Continental Sanan Optoelectronics and Huacan Optoelectronics have successively lowered the price of some LED chips in the near future, and announced that the 1.5-year LED chip price increase period has officially ended. TrendForceLED research believes that the demand for LED chips has been reversed, and 2018 will enter the stage of supply and demand balance. . Continental Sanan Optoelectronics and Huacan Optoelectronics have successively lowered the price of some LED chips in the near future, and announced that the 1.5-year LED chip price increase period has officially ended. TrendForceLED research believes that the demand for LED chips has been reversed, and 2018 will enter the stage of supply and demand balance. . The three major epitaxial factories in mainland China will enter the top three positions after the expansion of the two majors. The three cities of Sanan, Huacan and Aoyang Shunchang have a stable market share of more than half, unable to update. The land-based plant of the equipment is likely to be marginalized. According to the 2-inch expansion chip production capacity, Sanan, Huacan, and Aoyang Shunchang respectively increased by 1.3 million pieces, 1 million pieces and 830,000 pieces respectively, and separated into the top three LED chip factories in mainland China, with market share respectively. 32%, 20%, and 12%, compared with 27%, 13%, and 3% in 2016. The market share of Sanan City exceeded 30% for the first time, which made the mainland's epitaxial plant evolve from two big ones to three countries. However, with the gradual opening of new capacity at the end of this year, the supply and demand of LED chips will gradually return to balance, allowing manufacturers such as Sanan and Huacan to make strategic price adjustments for lighting and display chips in the near future. Prior to this, the price of the chip has remained high for a year and a half. After this round of adjustment, the price of LED chips is expected to enter a stable or small adjustment platform. LEDinside chief analyst Wang Fei said that the price of LED chips in mainland China plummeted in 2015, accelerating the transfer of global LED chip orders to China, which led to the increase in orders from Chinese manufacturers in 2016 and the expansion of capital expenditures. Compared with the trend of reducing investment and even exiting the LED industry in other regions of the world, Chinese manufacturers are still the most active in the LED industry. In 2017, the main MOCVD equipment expansion was from Sanan, Huacan and Aoyang Shunchang. Wang Fei said that after this large expansion, the production capacity of the three leading manufacturers will gradually exceed the threshold of 1 million pieces per month, and the concentration of LED chip production capacity will be significantly improved. It is expected to form a better supply structure and avoid excessive price competition. In addition, the production capacity of the new production capacity is higher than that of the previous generation machine (K465i generation), which can reduce the production cost by 30%, which will strengthen the cost competitiveness of leading manufacturers such as Sanan and Huacan, and cannot upgrade the equipment. Chip vendors will accelerate their marginalization. (
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