Chapter 3: LED market segments were added, covering the market scales on Chinese backlight LED, lighting LED and display LED fields. Also, Chinese LED package market scales in 2015-2019 by both manufacturer camps and power types are estimated. Furthermore, LED supply chain of backlight, lighting, and display markets are discussed.

Escalating market competition in China’s LED industry has spurred vendors to acquire orders by offering customers generous loan terms, but when buyers delay payment, it adversely affects manufacturers’ liquidity. If delayed accounts receivable become bad debts or uncollectible accounts then the consequences can be dire.

The LED industry is facing supply shortage. From upstream chip manufacturers to downstream package manufacturers are unable to adequately meet demands. In general, the industry, however, estimates May revenue will be even better. As the LED lighting market advances, China market insiders estimate the country’s LED market annual demand growth will surpass 30 percent, according to DZH News. LED chip production will increase to 10 percent during the first half of 2014, while supply and demand will tighten during the second half. 

Introduction 2010 and 2011 were the debut years for China LED industry.  Not only the numbers of MOCVD system increased from ~50 in 2007 to over 700 in 2011(see Fig 1), but also the LED industrial revenue has increased from the CNY$50 billion in 2007 to CNY$1,730 billion in 2011 (See Table 1).    Figure 1. China MOCVD installed base projection. (source: GG LED and LEDInside) Among all, the LED chip manufacturing and the application segments grow the most rapidly with the CAGR of 65% and 61% respectively. The phenomena are not...