“overcapacity” was misinterpreted, and the industry sought “structure change”

Text / high-tech LED reporter Liu Qiaomei

At the first G20-LED summit held at the Shanghai International Convention Center on August 29, the overcapacity of production became one of the important topics discussed at the summit. The leaders of the 20 global LED industry representatives from their own and industry perspectives At this stage, "overcapacity" has been fully explored and communicated from the respective industrial chain links.

Click to view the full text of "G 2 0 - LED Summit · Shanghai Communique"

Misinterpreting existing needs and future supply

At the press conference after the G20-LED summit, Dr. Zhang Xiaofei, secretary-general of the G20-LED Summit, said: "We agree that the LED production capacity at this stage, especially the upstream epitaxial chip, is already in a cyclical structure under certain requirements. Sexual excess, but in the long run, the overall upstream capacity of LEDs is not excessive compared to the future downstream lighting application space, and even only meets some of the demand."

Zhang Xiaofei believes that because LED lighting accounts for less than 1% of the total illumination, the future space is still very large. So everyone thinks that there is no excess capacity, but the quality of the production needs to be improved, which means that the real production capacity has not been utilized. Therefore, the surface production capacity is excessive. For example, the number of purchased machines is 50, but the actual production capacity is compared with that of foreign countries. The cycle of good rate production capacity is too long.

Gong Weibin, chairman of Ruifeng Optoelectronics, one of the members of the G20-LED Summit, said that Taiwanese and domestic chip makers are in a state of oversupply in terms of capacity. This trend is short-term behavior. In the long run, demand is constantly going up. .

Ding Long, general manager of LED Lighting Division of Dehao Runda, one of the member companies of G20-LED Summit, pointed out: "There should be a phased surplus, or structural excess, rather than a comprehensive surplus or long-term surplus. Especially the lighting may be a real turning point after two or three years. There is no excess problem when LED completely replaces traditional lighting."

Ding Long also gave his own opinion on the overcapacity that the current public talks about. "The so-called surplus we are talking about now is more about the current market size and the capacity that will be formed in the future but has not yet been formed. To compare, I think it is such a misunderstanding problem."

"In fact, everyone shouts a lot, but how much can be achieved in the end, I think this is a big problem." Wang Lianghai, vice president of Tongfang Co., Ltd. gave his explanation.

Dong Zonglei, Marketing Director of Xurui Optoelectronics Co., Ltd., said in an interview with Gao Gong LED reporter, "There is a concept that is effective production capacity. The effective production capacity is not to say how many machines you have, how many chips are produced each month, but What is the number of chips that you can really use for lighting products or that are stable in quality? How many lumens do you really produce, can your brightness meet the lighting requirements, or do you just produce some low-end chips? It is two meanings."

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