In 2014, the downstream lighting market was driven by the demand, and the upstream LED chip was in constant demand.
From may, some specifications of the chip began to raise prices and the downstream packaging plant to accept. The industry expects prices to rise across the board as shortages intensify.
Around with the focus on policy in the field of energy conservation and environmental protection, energy conservation and emissions reduction strength obvious enhancement, energy conservation and environmental protection consciousness constantly improve, LED lighting products price also more and more people, started peatlands terminal application market demand, this year will bring a new wave of LED lighting market growth peak.
The shortage of LED chips since march of this year is still increasing. From the demand side, some sealing factories have been forced to turn to second-tier chip factories for purchasing. From the perspective of supply side, the chip factory is cautious to expand production due to cost factors, because the first two MOCVD equipment manufacturers, which occupy nearly 90% of the market, have seen a big increase in the price of new models after product upgrading. The industry expects tight supply to continue through the end of the year.