The four factors indicates LED chip industry investment opportunities coming

There are sound investment opportunities, said the arrival of LED chip industry, mainly based on a few points.

1) With the coming season, led high bay light for sale inventory levels significantly reduced.

According to a recent survey ship with a number of companies have flat upstream pss or AC sapphire chip supply, many companies do not have any inventory of LED, few companies can talk about ordering the same packaging companies, rather than do Loaning.

2) the chip industry capacity is tight or not, depending on BDO Runda and Huacan capacity release and the extent of digestion. We visited a number of domestic enterprises, the domestic LED chip factory can produce the following major capacity (dry data, sending e - Copyright)

A domestic BDO and China currently only have a certain capacity Can Wait released, BDO 4 inch on the economy is still in a state does not, although there is significant improvement in shipments, but no significant improvement in the earnings situation also limits the German Howard capacity utilization. The aluminum electrode process Huacan main walk, although from a process point of view is good, but in the back-end chip segment customers on demand as well as concerns. The current average shipped 150,000, if the latter can be filled, it can be up to 300,000 level. But apart from these two plants outside and beyond chips for sale, other chip companies basically full orders.

2. Blue, poly Can include country star semiconductors for various reasons, the current state is for sale, especially a problem in 13 years of blue chip impulse volume, high debt, almost no equipment running.

3 Sanan current production capacity up to 90% more than 15 years, will certainly have to increase production capacity. The question now is if the three placement of 124 German furnace, without considering commissioning time, the equipment in place but also the end of a quarter or even next year. Another expansion may be the acquisition of Blu-ray, etc., belong to revitalize the stock.

4. So the second half of this year the situation, there should be no more capacity release, mainly BDO and Huacan capacity to digest and Aoyang out of production capacity expansion, as a whole, the industry competitive environment to the best period. After about two quarters of BDO and Huacan inventory capacity to digest almost chip market will be tense.

5. A new round of expansion peak until next year, from the expansion strength point of view, should belong to the partial benign growth of the industry can digest.

See 15 annual capacity expansion, without considering the three security section, each of the other major vendors capacity expansion is probably less than 500,000, even considering upgrading technology can probably also increase 250,000. The overall increase of 750,000, this new section will also cover the Puguang and backlight demand in South Korea, Japan and Taiwan, the basic capacity expansion is very cautious, I think the lighting needs to start, the basic problem is not digest the new capacity. led high bay light for sale industry ushered in the best of times, this round is expected to boom sustainable for several years.

6. Upstream raw material cost pressures and will not form a chip to enhance corporate profitability.

Currently MO source prices have fallen over the last year about the mid-40% ammonia are also more than 25% of the price, while a substantial part of the production release of the sapphire in the third quarter, the likelihood of price increases for LED enterprises barely. But epitaxial wafers converted into chip count dropped by about 10 percent last year, while according to the situation this year, and even the existence of price increases taste, LED chip corporate earnings will be significantly improved.

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