Since the second half of 2016, the tight capacity of the chip-side has led to the continued high economic growth of the LED industry. The two reasons are as follows: First, a large number of MOCVD machines that were expanded between 2010 and 2011 have been eliminated due to inefficiency. The newly added capacity of the machine has not been released, which has caused the production capacity of the whole industry to be tight. Secondly, in recent years, the governments of various governments have withdrawn from the MO industry and the reshuffle has been completed. Since the second half of 2016, the capacity of the chip end has been tightened, and the entire industry chain of the LED industry has been maintained. The high economy is due to two aspects: First, a large number of MOCVD machines that were expanded between 2010 and 2011 have been eliminated due to inefficiency, and the capacity of new machines has not been released, causing tight production capacity in the whole industry. With the exit of the MOCVD machine subsidy, the small and medium-sized chip factories that have their own hematopoietic ability are not able to withdraw from the market and reduce the production capacity of the industry. Under the effect of the hatchback, the industry smashed the baggage and went to the new round to grow. The pattern is clear, demand is breaking out, LED is not winning enough. At this moment, we believe that the LED market is far from over. The reasons are as follows: 1. The trend of overall production capacity transfer to the mainland has been fixed. Chinese manufacturers are not only facing the domestic market, but should look at the growth of industry and enterprises from the perspective of the international market. 2. The trend of concentration improvement will spread from upstream to downstream, and the head manufacturers will benefit from each link, and the growth is better than the industry average. 3. Downstream demand continued to be strong, exceeding market expectations. If the industry boom in the past year is driven by the supply side, then the next stage of industry growth will be driven by demand, from lighting to display, ushered in new products and technologies to stimulate broader demand.
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