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Zhang Zhian, president of KLA-Tencor (NASDAQ: KLAC), the world's fourth-largest semiconductor equipment manufacturer, said on the 23rd that although China's LED industry is experiencing overcapacity, LEDs have a broad development in China. Prospects, the future of the industry will gradually grow as the market demand increases.
Due to the financial subsidies of some local governments in the previous two years, the investment boom of enterprises has been triggered, and the LED lighting market has been affected by the popularity of the market due to excessive prices. The domestic LED industry has been suffering from overcapacity in the past two years.
Zhang Zhian believes that although China's LED industry is currently facing overcapacity, it will certainly reverse in the future. From October 1, 2012, China has begun to phase out the import and sale of ordinary lighting incandescent lamps in stages according to the power level. And as the price of LED lights continues to drop, it has reached a range acceptable to consumers.
Ketian Company mainly provides related testing equipment for semiconductor companies, etc. The company's fiscal year 2013 revenue reached 2.8 billion US dollars. In recent years, the company has also gradually expanded into emerging markets such as LED back-end inspection equipment.
Ketian said that LED revenue is currently less than 5 in the company's total revenue, but the future growth will certainly be better than semiconductors. It is expected that LED business revenue will occupy more shares in the company's revenue.
Although the industry still faces serious overcapacity, since 2013, the domestic LED market is gradually improving. According to statistics released by the High-tech LED Industry Research Institute, the total profit of the 22 key LED companies in the first half of 2013 was 1.604 billion yuan - 1.115 billion yuan, a year-on-year increase of 5-26. The overall performance was better than the same period in 2012.
The high-tech LED industry research institute expects that with the further increase of the lighting market in the second half of this year, the demand for upstream chips and mid-stream packaging will be further improved. The overall performance of the LED industry in the second half of the year is expected to continue to improve, and the annual performance is good. period.