LED Chip Prices Fell Significantly

Aug 25, 2017

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LED chip prices Fell Significantly

According to Taiwan's market research institutions FCR data show that Taiwan's LED chip production last year, about 657.2 billion, estimated this year under the manufacturers to increase output, the annual output of up to 751 billion, an increase of 14%; Line, the UV LED (UVLED) due to Japanese companies focus on R & D funding is expected this year output of 46 million, by 2020 will grow 4 times to 1.83 billion growth rate of the highest.


Chip production increased year by year, but the output is expected to only flat performance this year, FCR data show that last year's chip output value of about 6.923 billion US dollars (equivalent to about 46.7 billion yuan), is expected to reach 7.11 billion US dollars this year (equivalent to about 479 yuan Billion yuan), an increase of 2.5% is far less than capacity growth, indicating that global chip production is still surplus, leading to price fluctuations, the mainland continued over-investment in production, resulting in chip prices fell significantly, the Taiwan plant profit is not easy.


Taiwan LED chip factory crystal power this year, the operating strategy from the past to maintain the global market share of the leading, to ensure that operating profit, no longer compete with San'an photoelectric production capacity, but choose a better profit four yuan product line development, To ensure that operations can be turned.


Photoelectric Association (PIDA) pointed out that due to the existing product line in the price competition is difficult to profit, the Taiwan plant to develop new applications to ensure that the technology leader and give priority to market development, is expected to UV LED, Micro LED Taiwan plant development opportunities And the space, the current part of the Taiwan plant has been transferred to technology research and development.


In addition, LED lighting components last year, a recession last year, the global LED component output value of 17 billion US dollars (equivalent to about 114.7 billion yuan), by 2%, the regional market, including Japan, South Korea, the United States are double-digit decline, and Taiwan region after the proportion of production capacity to improve the proportion of four yuan and other niche products to reduce the fierce price of Blu-ray products and output value, the decline rate of 6%.