Under the tide of production expansion, LED display raw materials do not fall but rise

Since the beginning of this year, people in the industry have more or less noticed that the major chip and packaging leaders in the LED display industry have been making great strides all the way and expanding production frequently…

San’an Optoelectronics announced that the company decided to invest no more than 280 million yuan in Xiamen Sanan Optoelectronics Technology Co., Ltd., a wholly-owned subsidiary, to add 20 internationally advanced single-cavity machines or 5 four-cavity conjoined gallium nitride MOCVD Equipment and expansion of some LED chip production lines.

Nationstar Optoelectronics stated that it will continue to expand the production scale of the midstream packaging field, and plans to invest no more than 400 million yuan in its own funds to expand production, so as to continue to improve the company’s production capacity and seize a larger market share.

The construction of Mulinsen’s first-phase plant in Xinyu, Jiangxi has been completed, and part of it has been put into use. The first-phase plant in Ji’an, Jiangxi is under construction. It is understood that in 2016, Mulinsen will speed up the construction of two production bases in Jiangxi Xinyu and Ji’an to increase the market share of products.

According to the forecast data of industry organizations, the total size of China’s LED industry in 2015 is expected to be 396.7 billion yuan, an increase of 15.1% year-on-year, of which the output value of LED chips reached 13 billion yuan, an increase of only 8% year-on-year, but the output of LED chips increased by 60% year-on-year. %. In addition, China’s LED packaging industry currently has a considerable economic scale, accounting for about 70% of global LED packaging production, and this proportion will further increase in the future.

Manufacturers in the upper and middle reaches wantonly expand production, which would normally lead to a drop in product prices, but the current situation is not the case. Recently, some LED display companies have fallen into a contradictory state: instead of falling, the price of raw materials has increased! What is going on?

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