LED from the full competition into a stable growth era, Chinese products to the world. From the LED industry cycle terms, after the depth of shuffling in 2015 and 2016, the supply side of the reform more fully, LED industry has been in the S-shaped industry curve of the second wave of cattle to open: from the LED upstream supply point of view, the industry production capacity Speed to enhance the formation of higher barriers to the industry, to curb the expansion of the capacity of disorder; at the same time downstream application innovation to drive the industrial chain to flourish. From the current point of view, LED lighting to accelerate penetration, LED lighting intelligent network to promote the market space increased by 1.3 times and the small gap display accelerated burst growth, is becoming a new round of leading LED industry demand for the main driving force. The supply side 2016 new capacity rapid shrinkage stacking old models out, 2017 effective capacity of 83.28 million as of 2016 effective production capacity of about
1083 units (49 film and above) corresponding capacity of about 63 million / year. And the current 45 ~ 49 models (equivalent to about 1033 k465i54 chip machine capacity of about 60.24 million / year) in a weak start situation, with the passage of time will be phased out. 2016 overall supply demand to maintain a weak balance, part of the product structural capacity tension. It is understood that 2017 LED chip leading enterprises increased by about 345 units (converted VeecoK465i 54 models machine). Which includes part of the purchase of second-hand equipment to improve the old models, so the end of 2017 the global effective production capacity reached 83.28 million / year. Demand side of the chip demand in 2017 92.35 million, an increase of 12.5% According to the estimated 2017 LED epitaxial wafer demand 92.35 million (converted 2-inch film), which demand 47.04 million pieces of optical chip growth of 20%; outdoor full color display demand 26.0 million units increased by 5%; indoor small spacing demand 102 million growth of 50%; mobile phone backlight demand 1.39 million; Tablet PC backlight demand 44 million; computer and TV backlight demand 699 million; automotive lighting demand 1.06 million ; Other about 839 million. In summary, we can see that in 2017, the total chip demand area is estimated at 92.35 million, an increase of about 12.5%. Guoxin Securities that any industry capacity slightly higher than the demand is the balance of supply and demand of steady-state characteristics, and 2017 LED demand is still 12.5% steady growth, so Guoxin Securities to determine the 2017 LED chip in short supply, the end of 2017 LED chip effective production capacity of about 8328 Million, the demand for about 92.35 million.