Domestic LED excess capacity will reach its peak in the first quarter of next year

Wang Lianghai, vice-president of Tongfang, disclosed on December 14 that at present, Tongfang’s shares had received a total of 50 MOCVD (LED epitaxial wafers production equipment), and 20 of them have been put into production. The remaining MOCVD will continue to be commissioned and put into production. He frankly stated that as China's newly added MOCVD production capacity is opened, domestic LED chip prices will bottom out in the first quarter of next year, and at that time, inventory formation will take at least six months to digest.

Wang Lianghai said that Tongfang’s investment in the LED industry has exceeded 4 billion yuan, and Tongfang’s board of directors hopes that LED business can reach a scale of 10 billion in the future.

In addition, Zheng Tiemin, general manager of Inspur Huaguang, also revealed recently that Inspur Huaguang has arrived at 26 MOCVD equipment and has now gradually put into production.

According to statistics, as of the end of November, the number of MOCVD newly added in the country has reached 300, and it is expected that nearly 200 MOCVD devices will be added in 2012. It is expected that the domestic LED chip output will reach 10 times of 2010 in 2012.

At the same time, the international lighting giant is also stepping up the layout of the Chinese market. Chen Kunhe, vice president of OSRAM Opto Semiconductors Asia, also revealed that the establishment of LED packaging plants in China is still in the process of negotiations, but the results will be announced within the last two months. It is reported that OSRAM has been in Chengdu, Xi'an, Suzhou and Wuxi since the beginning of this year to select the final location of the LED packaging plant.

However, from the recent acquisitions of LED channels and brands by international LED giants such as Osram, GE, Cree and Philips, OSRAM and Philips have represented the international giants in the field of LED lighting, and LEDs have been formed. The Patent Licensing Network is nothing more than trying to replicate the traditional lighting business model and making Chinese LED companies the production base for their OEM products.

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