LED chip supply in 2011 is still as high as 174 billion, only 129 billion of chip demand, oversupply ratio is as high as 35%, most LED manufacturers faced with a huge inventory adjustment pressure in the second half of 2011. Outlook 2012, huge MOCVD machine capacity not yet fully released, the industry as a whole glut is still difficult to solve, however, has a patent threshold and high-tech manufacturers still have a chance to ride out the storm in such a plight.
The recent end-market demand by the global downturn, many LED lamp manufacturers sharp drop in export orders. The only commercial lighting project with the public sector there are still some orders. China LED observe that many small and medium-sized LED lamp manufacturers reduced because of export orders, coupled with increasingly fierce competitive environment, there are still many manufacturers face a crisis of failure before the Chinese New Year, also makes the upstream manufacturers more careful selection of customers and the amount of open accounts .
In the situation of caution shipping and inventory water level steadily increased, most manufacturers choose to reduce capacity utilization, and force employees to leave to control costs and reduce output, but how to reduce the huge inventory levels or various LED high bay lighting manufacturers imperative.
As regards the consumption of large number of LED backlight LCD TV market, in 2011 by the global economic downturn, the global LED-backlit LCD TV (LEDTV) shipments obviously not as good as expected. LCD TV shipments in 2011 the total raised to 203 million units from 220 million audience. But with the major events including the World Cup in Brazil, as well as TV brands have introduced low-cost LED backlit TV to stimulate demand, LCD TV sales volume expected for the emerging markets is expected to increase, then in 2012 for LED backlighting market will be helpful.