In 2015, the price of LED chips in China plummeted, accelerating the transfer of global LED chip orders to China, resulting in a sharp increase in orders from Chinese manufacturers in 2016, and they have expanded their capital expenditures accordingly. Compared with the global manufacturers in other regions to gradually reduce investment, and even exit the LED industry, Chinese manufacturers are still the most active investment in the LED industry. In 2017, China's LED chip leading factory Sanan Optoelectronics and Huacan Optoelectronics successively lowered the price of some LED chips, and announced that the LED chip price increase period lasting for one and a half years officially ended. LEDInside believes that the price of LED chips is loose, which indicates that the supply of LED chips in the whole industry has been reversed. In 2018, the LED chip market will resume supply and demand balance, but with the LED chip manufacturers The new capacity continues to be delivered, and the phased oversupply will not be ruled out in the next two years. In 2015, the price of LED chips in China plummeted, accelerating the transfer of global LED chip orders to China, resulting in a sharp increase in orders from Chinese manufacturers in 2016, and they have expanded their capital expenditures accordingly. Compared with the global manufacturers in other regions to gradually reduce investment, and even exit the LED industry, Chinese manufacturers are still the most active investment in the LED industry. In 2017, the main MOCVD equipment expansion was from Chinese manufacturers Sanan Optoelectronics, Huacan Optoelectronics and Aoyang Shunchang. If calculated by the production capacity of 2-inch epitaxial wafers, Sanan, Huacan and Aoyang Shunchang will increase by 1.3 million pieces, 1 million pieces and 830,000 pieces respectively, becoming the top three LED chip factories in China. With the increase in new capacity at the end of 2017, the supply and demand of the LED chip market has gradually returned to equilibrium. Therefore, manufacturers such as Sanan and Huacan have chosen to make strategic price adjustments for the increasingly fierce lighting and display chips in the near future. Prior to this, the price of the chip has remained high for one and a half years. After this round of adjustment, the price of LED chips is expected to enter a stable or small adjustment platform period.
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