Taiwan and domestic LED chip manufacturers face huge inventory pressure

Hits:Updated:2018-11-20 13:11:37【Print】

  According to industry sources, as China's LED epitaxial wafer and chip manufacturers continue to invest more capacity, but the market demand has remained unchanged, resulting in an oversupply situation in the LED chip market, which ultimately led to Taiwan and domestic LED chip manufacturers facing too high Inventory level pressure.
At the end of the third quarter of 2018, Sanan Optoelectronics' inventory value reached 2.576 billion yuan (about 376 million US dollars), an increase of 3.6% over the previous quarter, an increase of 102.2%; as of the end of September 2018, Huacan photoelectric inventory value was as high as 12.37. 100 million yuan, an increase of 33.2% from the previous month; the value of dry photo photoelectric inventory reached 407 million yuan, an increase of 64.1%.
  For Taiwanese manufacturer Jingyuan Optoelectronics, the inventory value at the end of the third quarter of 2018 reached US$172 million, down 1.4% from the previous quarter, but up 11.9% from the same period last year.
  Although LED chip manufacturers have increased their inventories in order to slow down the price decline, at the same time, from the beginning of 2018 to the end of September, the price of LED chips has dropped by 15-20%. As Sanan Optoelectronics is expanding its production capacity, some additional capacity is expected to come into effect in mid-2019, so the oversupply of LED chips may continue to deteriorate in 2019.
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