LED lighting prices drop international chip giants facing inventory pressure

In 2011, the industry opened up a wide range of doubts about 2010, especially the China LED connotation chip production competition, which may inspire the oversupply of the market this year. Based on the drop and spread of LED lamp prices, Samsung and many LED manufacturers in China have stepped into the LED lighting market. Ke Ri, South Korea's Samsung LED company announced the introduction of five types of input power above and below 1W high, medium power LED new products, to formally enter the LED lighting market.

Now the LED industry is widely expected compared to the 2010 global LED lighting infiltration rate of about 3%, 2011 LED lighting penetration rate is expected to reach 6 to 10%. The upstream MOCVD machine platform will have a 5-fold increase in 2011, which will inevitably lead to an increase in production capacity by 15 times. The backlight source is the best release port for this year's expansion of production capacity. If the backlight source's increase this year is expected, then the price of LED will probably stay. Conversely, by June, following the excess capacity of the upstream chip, LED group cost will drop by 30%. Now, they have felt that there are pressures on the stocks of several major international giants that have long-term mutual assistance.

For LED lighting manufacturers, the decline in LED prices is a side effect, which can make their products more able to be played by users, but they also use the efficiency of light to reduce their capital and gain market profits, Chen Bin said. It is estimated that in the trend of declining chip costs in 2011, the price of LED light bulbs will continue to decline, and large-size LCD backlights and LED lighting are expected to become the twin engines for advancement.