The first G20-LED summit will send positive signals to the industry
In recent years, the global LED industry has developed rapidly. As the world's largest potential manufacturing and consumer market, the industry is still arguing about the status quo and trend of China's LED industry development, and various viewpoints are bustling. A very popular argument has been sought after by quite a few people: "China's LED overcapacity, development is a catalyzed leap forward."
It is undeniable that with the near-explosive growth of the number of LED operators in China, LED companies have expanded from the Pearl River Delta and the Yangtze River Delta to most of northern China and even the northwest. However, it is not objective and unscientific to emphasize overcapacity, and it is not conducive to the healthy development of China's LED industry.
At the first G20-LED summit held recently, the leaders of the 20 global LED industry representatives from the perspective of their own and industry from the perspective of their own "overcapacity", from their respective industry chain links have been fully explored and communicated, and A consensus was reached.
"Overcapacity Theory" misinterprets the relationship between existing demand and future supply
At the press conference after the meeting, Dr. Zhang Xiaofei, secretary general of the G20-LED Summit, said: "We all agree that the LED production capacity at this stage, especially the upstream epitaxial chip, is already in a cyclical and structural excess under certain requirements. State, but in the long run, the overall upstream capacity of LEDs is not excessive compared to the future downstream lighting application space, and even only meets some of the demand."
At present, the penetration rate of LED lighting in China and even in the world is still a very low level. In this regard, Dr. Zhang Xiaofei said: "Now the penetration rate has not yet reached 1%, so the future space is very large. Therefore, we feel that there is no excess capacity supply for the actual overall demand, but the quality of these released production capacity needs to be improved in the future. The real capacity has not been realized. For example, if the number of MOCVD is 50, the yield of products that actually exert capacity will still be different from that of foreign countries. Therefore, there is no excess capacity.
From an industry perspective, Ding Long, general manager of the LED lighting division of Dehao Runda, one of the members of the G20-LED Summit, said: "In fact, I think the Secretary-General Zhang has already said that it is a phased surplus. Or structural excess, not a comprehensive surplus or long-term surplus. Especially lighting, may be the real turning point after two or three years (LED completely replaces traditional lighting), there is no excess problem."
Ding Long also gave his own opinion on the overcapacity phenomenon discussed by the current public opinion. "The so-called surplus we are talking about now is more to take the current market size and the capacity that will be formed in the future but has not yet been formed. For comparison, I think it is such a misunderstanding."
It is undeniable that with the near-explosive growth of the number of LED operators in China, LED companies have expanded from the Pearl River Delta and the Yangtze River Delta to most of northern China and even the northwest. However, it is not objective and unscientific to emphasize overcapacity, and it is not conducive to the healthy development of China's LED industry.
At the first G20-LED summit held recently, the leaders of the 20 global LED industry representatives from the perspective of their own and industry from the perspective of their own "overcapacity", from their respective industry chain links have been fully explored and communicated, and A consensus was reached.
"Overcapacity Theory" misinterprets the relationship between existing demand and future supply
At the press conference after the meeting, Dr. Zhang Xiaofei, secretary general of the G20-LED Summit, said: "We all agree that the LED production capacity at this stage, especially the upstream epitaxial chip, is already in a cyclical and structural excess under certain requirements. State, but in the long run, the overall upstream capacity of LEDs is not excessive compared to the future downstream lighting application space, and even only meets some of the demand."
At present, the penetration rate of LED lighting in China and even in the world is still a very low level. In this regard, Dr. Zhang Xiaofei said: "Now the penetration rate has not yet reached 1%, so the future space is very large. Therefore, we feel that there is no excess capacity supply for the actual overall demand, but the quality of these released production capacity needs to be improved in the future. The real capacity has not been realized. For example, if the number of MOCVD is 50, the yield of products that actually exert capacity will still be different from that of foreign countries. Therefore, there is no excess capacity.
From an industry perspective, Ding Long, general manager of the LED lighting division of Dehao Runda, one of the members of the G20-LED Summit, said: "In fact, I think the Secretary-General Zhang has already said that it is a phased surplus. Or structural excess, not a comprehensive surplus or long-term surplus. Especially lighting, may be the real turning point after two or three years (LED completely replaces traditional lighting), there is no excess problem."
Ding Long also gave his own opinion on the overcapacity phenomenon discussed by the current public opinion. "The so-called surplus we are talking about now is more to take the current market size and the capacity that will be formed in the future but has not yet been formed. For comparison, I think it is such a misunderstanding."
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