Zhang Xiaofei: Analysis of China's LED Capacity Development and Market Demand Trends in 2011

On August 30th, the 8th High-tech LED Industry Summit held in conjunction with the High-tech LED Boutique Exhibition was held in the Century Hall of the Shanghai International Convention Center. The forum revolved around “Winning in the chaos” and “LED lighting technology – problems and solutions” The way, LED lighting design and application engineering - the decisive segment, and the "LED lighting market - Red Sea and Blue Ocean" four topics and the guests to share the latest industry development trends, analysis of the industry, the middle and lower reaches Hot issues such as market strategy. The scale of the conference was unprecedented, and the full venue fully demonstrated the great enthusiasm of the LED industry for this high-tech LED brand conference.

Gaogong LED CEO Dr. Zhang Xiaofei pointed out that as of August 2011, the LED industry development rate was less than expected, the price dropped significantly, and the relative excess capacity was the main reason. The investment in LED sapphire substrate is the most overheated, and the planned and under construction capacity is much larger than the actual demand. The total planned production capacity of LED sapphire substrate has reached 330 million. In 2011, the global demand was less than 50 million pieces, of which the demand in China was less than 10 million pieces. The investment in LED epitaxial chips was overheated. From January to July 2011, MOCVD increased by more than 200 units. It is estimated that by 2012 China's LED chip production capacity will reach 10 times in 2010. The government has introduced preferential policies and competition is the main reason. He analyzed the nature of overcapacity because of the huge market space and insufficient demand. Zhang Xiaofei also proposed to promote the growth of the terminal market should start from the government subsidized terminal consumption, sales channel construction, product cost performance, differentiated products and other aspects.

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