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The price of LED chips has dropped significantly. Taiwanese companies have turned to new applications.
According to the FCR data of Taiwan's market-adjusting institutions, the output of Taiwan's LED chips was about 657.2 billion pieces last year. It is estimated that this year's output will reach 751 billion pieces, an annual increase of 14%. In the line, ultraviolet light LED (UVLED) is expected to invest in research and development funds by Japanese companies. It is expected to produce 46 million units this year, to 20%. According to the FCR data of the Taiwan regional market, the output of LED chips is about 657.2 billion pieces last year. Under the increase of output of manufacturers this year, the annual output will reach 751 billion, an annual increase of 14%; in the product line, ultraviolet LED (UVLED) is expected to invest in research and development by Japanese companies, and this year's output is expected. 46 million will increase by 4 times to 183 million by 2020. The output of chips is increasing year by year, but the output value is expected to be flat only this year. The FCR data shows that the output value of Taiwan's chips last year was about 6.923 billion US dollars (about 46.7 billion yuan), which is expected to reach 7.101 billion US dollars (about 47.9 billion yuan). The annual increase of 2.5% is far less than the increase in production capacity, indicating that the global chip production is still excessive, resulting in the price falling. The mainland continues to over-invest in production, resulting in a significant decline in chip prices, and it is not easy for Taiwanese companies to make profits. The operating strategy of LED chip factory in this year is to maintain the global market share leader in the past, and to turn to ensure profitability in operation, no longer compete with Sanan Optoelectronics for production capacity, but to choose a profitable quaternary product line. Ensure that the operation can turn profit. The Photonics Association (PIDA) pointed out that as existing product lines are difficult to profit under price competition, Taiwanese factories must develop new application areas to ensure technology leadership and prioritize market development. It is expected that UV LED and Micro LED units will have development opportunities. With space, some Taiwanese factories have now transferred to technology research and development. In addition, LED lighting components experienced a decline last year. Last year, the global LED component production value reached 17 billion US dollars (equivalent to about 114.7 billion yuan), down 2% year-on-year. The regional market includes Japan, South Korea, and the United States all have double-digit recession. The Taiwan region has adjusted its proportion of production capacity to increase the proportion of niche products such as quaternary products, and to reduce the price and value of Blu-ray products and the value of production. The decline rate is 6%.