LED lighting reduced price turmoil

March 31, 2020

LED lighting reduced price turmoil

Since this year, Blu-ray LED has been subjected to oversupply and pressure on prices, leading to weak operation of the Epistar factory in the first half of this year. However, the upstream and downstream manufacturers have already released price reduction and deceleration messages on sapphire substrates and LED lighting.

In 2014, the penetration rate of LED lighting will climb from 8% to 10% this year to 20% in one fell swoop, becoming another major factor in digesting chip production capacity.

Yiguang said that the price of mainstream LED lighting will fall by more than 20% for the whole year this year. Although it will be difficult to get rid of the downward trend next year, the decline will have an opportunity to be controlled within 20%, which will be better than this year.

Everlight currently adopts a dual-brand strategy for LED lighting, including EVERLIGHT and ZEANAO, which have yet to formally enter the profitable outbreak period. However, as chip prices are lowered, demand for terminals has risen. Everlight expects LED lighting penetration rate to increase by 20% next year. With only 8% to 10% penetration this year, there has been significant growth.

In addition, on the sapphire substrate, prices have also bottomed out. The sapphire substrate factory pointed out that in the second quarter to the fourth quarter of this year, the ASP of the sapphire substrate did not change much. Compared to the earlier 9 seasons to 10 quarters, the price was It has already bottomed out. It remains to be seen whether the price will show a V-shaped or L-shaped trend.

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