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Joint Peace Lighting Co., Limited

ADD:No.4, Lane9, Tongpai East,Tianan Park Bantian,Longgang District´╝îShenzhen China 518129.

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LED Price Drops Ease in China

China-based LED firms have slowed down the pace of price cuts as LED chipmakers face shrinking profit margins. Taiwan-based firms noted that China-based LED industry leader Sanan Optoelectronics has been limiting its price decline, easing pricing pressure on Taiwan peers.

China-based LED firms have been expanding rapidly in recent years, causing market imbalance. LED chipmakers noted that product prices have fallen around 35% in two years, especially after the rise of Sanan, has been aggressively relying on low pricing to obtain orders.

Taiwan-based LED chipmakers added that the LED subsidies from China's local governments have been shrinking and Sanan, having established itself as the leader in China's LED insutry, has chosen to be less aggressive in pricing.

Overall first-quarter price drop for LED products in China was lower than 4.5% (with the exception of high-power LED chips), the smallest quarterly drop in two years.

With prices stabilizing, TV backlighting demand returning and the lighting market growing, Taiwan-based firms are likely to see strong performance in the second and third quarter of 2013.

On the other hand, the upstream MOCVD equipment market continues to be cloudy. However, according to John R Peeler, chairman and CEO of Veeco, there have been some rush orders from China which the firm has not seen "in a long time."

China-based LED firms noted that some LED chipmakers have begun to expand capacity and many expansion projects that were suspended in 2012 may be revived in 2013.

Source: http://www.digitimes.com/