The news shows that as many Chinese LED epitaxy and chip manufacturers have expanded or are expanding their capacity, several major Chinese listed manufacturers are expected to account for 70% of global LED chip production in the next 3 to 5 years.
According to the "13th Five-Year" plan, the total output value of LED lighting in China in 2020 is 1 trillion RMB (about 153 billion US dollars), and LED lighting accounts for 70% of the total sales of lighting products in the year. It is reported that the output value of China's LED lighting has increased from 7 billion 800 million yuan in 2009 to 255 billion yuan in 2017, with an average annual compound growth rate of 54.62%.
After gaining capital and capital investment in December 2016, Xiamen photoelectricity has adjusted the enterprise structure, upgraded the red and yellow LED chip technology and expanded the capacity of the blue and green light LED chip. In May 2017, Qian Zhao photoelectricity invested 737 million yuan, and purchased 20 sets of MOCVD equipment for producing red and yellow LED chips. At present, it has become China's largest manufacturer of red and yellow LED chips, accounting for more than 30% of China's total output, accounting for about 11% of the world's total output. For the blue and green LED chip, dry photoelectricity began to expand its capacity in Nanchang plant in Central China in July 2017, with a total investment of 5 billion yuan. The factory has an additional capacity of 120-160 000 epitaxial films per month, with an initial production capacity of 600000-800000 epitaxial films, and has been put into operation since August 2018. In addition, Qian Zhao optoelectronics has begun producing infrared LED chips in its factories in eastern Yangzhou.
The capacity expansion of China's LED chip manufacturers has led to worries about oversupply. In this context, the Xiamen photo optoelectronic President Kim Zhang Yu said that the smaller Chinese manufacturers would be forced to withdraw from the market, which would ease the possible oversupply.