It is expected that the LED industry will gradually step out of overcapacity


In 2014, equipment investment will be restarted and capacity will be expanded. According to the quarterly forecast report of the International Semiconductor Equipment and Materials Organization (SEMI), investment in LED chip manufacturing equipment will rise by 17 to $1.2 billion next year after a continuous decline. Equipment investment will also present a new trend: the main force of equipment investment in the LED industry will be industry leaders and survivors, not new players. In 2010 and 2011, most of the capacity expansion was due to manufacturers' over-optimistic forecasts for the future. The LED market will grow to $20 billion by 2015.
Currently, the forecast for the LED packaging market is: after 2015, around $15 billion, the compound annual growth rate is lower than 5. The main reason for the downward revision is that LEDs are becoming more efficient in use (such as improving the light in the display). Conduit), LED package is more efficient, and the transition to the LED lighting market is slower. According to US market research firm StrategiesUnlimited, the average cost per kilogram of lumens has fallen from $13 in 2011 to less than $3.65 today. The number of LEDs used in television has dropped by a third, and many SSL fixtures use nearly half less LEDs than in previous years. The number of LEDs used in mobile devices and laptops has also declined. Cars are still a growing market, but cars account for only 10. of the total LED market. So many new capacity and new companies, as well as falling growth rates, have caused the price of LED packages to drop significantly in recent years. It has caused serious financial difficulties for many companies, especially newly established ones. The capacity utilization rate of the plant has declined globally, especially in China. Sales of MOCVD systems, the key production equipment for LED epitaxial wafers, plummeted. Leading MOCVD companies, such as Veeco and Aixtron, have tripled their sales in 2010, but in 2012 their revenues plummeted by nearly the same amount.
In 2014, Chinese companies will continue to purchase MOCVD equipment. The International Semiconductor Equipment and Materials Group estimates that sales of MOCVD reactors will increase by 50 in 2014. In addition, many LED factories in China will be shut down or rebuilt for other uses due to market consolidation and the collapse of many uncompetitive companies. Sanan Optoelectronics with 120 MOCVD equipment and Dehao Runda with 90 reactors are working hard to increase capacity utilization and may emerge as important market players. Some medium-sized LED factories in China, such as the production capacity of Shengyang Optoelectronics and Huacan Optoelectronics, have almost been fully utilized, and they are optimistic about the future. In 2014, equipment spending by Chinese companies will account for 44% of the global total, up from 33 in 2013.

Precision Machining Parts

The precision machining we usually talk about generally refers to precision CNC Machining, CNC turning, CNC milling, CNC turning and milling composite machining, grinding, wire cutting, EDM machining, etc. The parts obtained by these machining methods can usually achieve relatively high precision and surface finish. Moreover, Precision Machining Parts has a wide selection of materials, and most materials can be used for CNC machining. Since the precision machining parts need to be machined one by one on the machine tool, the cost of mass production is relatively high compared with the parts that are directly formed by the mold. Of course, the most suitable and reasonable processing method to choose mainly depends on the product materials and the requirements of the product itself. SCZY has very rich experience in Precision Machining Parts and CNC Machining Parts ( They are included the stainless steel machining parts, aluminum machining parts, brass machining parts, titanium machining parts, plastic machining parts etc). Our normal machining accuracy can reach ±0.01mm, and for some special requirements, the accuracy can reach ±0.005mm (depending on specific products). We usually choose the most reasonable method according to the drawing requirements and recommend it to customers. Below are some pictures of precision machined parts for reference only.

CNC machining



Precision Machining Parts,Precision Machining Services,CNC Machining Services,CNC Machining Parts,CNC Services

Shenzhen SCZY Technology Co.,Ltd , https://www.szsccasting.com