UBS released the electronic components industry research report today, pointing out that the global LED CHIP supply and demand balance, the overcapacity situation has further eased, lighting has gradually become the most important application of the LED industry, which is good for China's LED industry chain, the future LED chip manufacturers are the most beneficial, individual stocks.
First, UBS explained the concept of LED chips, a compound semiconductor device that converts electrical energy into visible or invisible light. The LED chips adopts electric field illumination, compared with the traditional light source, the LED light source has the characteristics of high luminous efficiency, long life, low energy consumption, small volume, no pollution, low radiation and the like.
Since 2013, the penetration rate of LED lighting has increased rapidly, driving the demand for LED chips. Currently, LEDs are widely used in lighting, display, signal indication, automotive, mobile phones, television and other fields. Since 2011, the global LED market has experienced a serious oversupply. This is mainly because the Chinese government promotes energy conservation and emission reduction. Local governments have successively introduced policies to encourage LED chip companies, including subsidies of RMB 8 million to 10 million yuan for MOCVD core equipment for LED chip production. At the same time, the demand for LED-backlit TVs has increased, which has led to the expansion of LED manufacturers in Taiwan and South Korea. This has led to a significant increase in global LED chip production capacity, exceeding demand growth.
