The LED grain plant in mainland China continues to expand capacity, and the oversupply of LED industry in 2018 has become the focus of concern, although the price decline of the LED in the near future has been eased, but the industry is more concerned about half of the second quarter, the global LED market is still not looking forward to Chun Yan's sound, and the end customers are reluctant to take a long list to force a new wave of falling price pressure in the LED market. If the third quarter of the third season is still not strong, it will be imminent to reduce the grain production. Otherwise, it will be difficult to avoid the price breaking crisis. The industry is looking at who will take the lead in starting the reduction or the price reduction.

In view of the overall LED market demand, there are still differences in the application of different products, of which the demand for LED display and invisible light is relatively stable, but the blue light LED is weak, and the April revenue from many LED factories can be seen, different from the return temperature of LED in March, the slow back temperature in the 2018 LED market, and the second quarter LED needs. To be bullying is optimistic.

LED operators revealed that North American LED lighting terminal market sales were less than expected, once faced by customers in 3~4 months, and the third quarter was expected to emerge as a new wave of demand for the next wave of lighting sales before the end of the end of the year. Although the industry is still looking forward to the third quarter of the peak season, another warning can not be ignored. The LED water level is high.

Mainland LED grain plant, San an, hucan's profit performance is not vulgar, but the first quarter of stock is rapidly rising, the first quarter of the three - an - quarter revenue of RMB 1 billion 945 million yuan, the inventory amount reached 2 billion 225 million yuan, compared with the same period in 2017 stock only 1 billion 57 million yuan, and the fourth quarter of 2017, about 1 billion 800 million yuan, three an increase in a quarter More than 400 million yuan in stock.

The stock of Hua can optoelectronic was also high in season by season. In the first quarter of 2018, revenue was 710 million yuan, but the amount of the stock reached 789 million yuan, higher than 685 million yuan in the previous quarter, and significantly higher than that of 506 million yuan in the same period of 2017. As for the similar situation, although the first quarter still maintained profit performance, but a single quarter revenue of 5 billion 150 million NT $10%, compared with the same period in 2017, about 10%, and the inventory amount reached 5 billion 422 million yuan, the first quarter of 2016, a new high. In the face of the LED grain plant in mainland China, the new production capacity has been drastically opened, but the terminal demand has not been synchronized rapidly. The LED industry frankly said that there is a possibility of falling prices every day. The industry knows that the LED grain has entered the oversupply situation. In the mind of the expected price drop, the customer is reluctant to provide a long list and the order visibility is only about 1 months.

LED industry believes that if LED stock is more than 6 months, the stock must be eliminated from 20 to 30%. The manufacturer must carefully control the stock level, through inventory to delay the trend of the market price fall, the manufacturers have to gain more profits, the upstream and downstream industries fall into the sawing war, and then the force will appear in the second half of the year.

From the first half of the situation in 2018, the LED grain plant on both sides of the Taiwan Straits seems not to be inclined to kill the price competition strategy. After all, the fast price drop in the fourth quarter of 2017 has caused other industry to follow up the price, not only does not help the increase of its own market share, but also leads to the confusion of the industrial order.

The LED grain fall collapse crisis is triggered by the crisis, but if the LED grain factory announced the reduction in production in 2015, it will lead to the decline of the price of LED, in the face of the plight of oversupply, the rational control of the grain output in the upper reaches, although the crop movement rate is reduced and the production cost is improved, but it may be a solution to the balance of supply and demand.

For the LED grain plant, whether the price reduction or reduction is the test of the dilemma, the third quarter peak demand can be smooth to change the stock to be observed, otherwise the fourth quarter will enter the off-season of the industry again, and the mainland industry will re import a new batch of machine production, and the price of LED falls below the time of the Warring States period of cash.

In addition, the global economic situation in 2018 also added variables, including the United States to the mainland of the 301 terms is not clear, although the LED lighting is not included in the list of sanctions, but the backlight display LED is on the list, terminal customers to avoid the risk of cooking, and adjust the supply chain preparation program, and lead to a strong market attitude. The delivery time of the impact platform factory.

In the near future, the US China trade negotiations are facing a positive development, slightly easing the atmosphere of the supply chain, and the TV new aircraft will be expected to ship smoothly, but for the end brand operators, how to disperse the upstream supply chain to other regions will be the key point in the future.