led supply chain image

Downstream of the rapid growth of the lighting market at the same time brings middle packaging companies supply pressure. “Our current packaging production capacity has increased by around 40% in 2012.” Anhui ZeRun photoelectric co., LTD. President Chen Hesheng told the China electronics news reporter, “although the encapsulation material procurement is still very smooth, but the packaging delivery pressure is very big.” Therefore, Chen Hesheng, said in response to shortages, ZeRun has used the encapsulation processing and packaging finished product purchased outside the way delivery pressure to balance itself.

“But overall, we think packaging delivery pressure is temporary.” Chen Hesheng stressed that “the upper and middle reaches of devices is still a large number of idle capacity, just because of personnel, management and other reasons, the release of equipment capacity will also need a process.”

Middle reaches full production and packaging enterprises gradually to market good conduction to upstream. “After may this year, industry appeared the significant turn.” Epitaxy chip manufacturing enterprises in shandong wave optoelectronic co., LTD., general manager of hua Zheng Tiemin told the “China electronics news” reporter, “everybody thought industry turning point will appear in 2014, the results now signs of demand is very obvious, we wave of hua also feeling the pinch in procurement and supply.” Zheng Tiemin also said at the same time, from the perspective of the rule of market economy development, as capacity utilization rate has increased, the market will be from supply to demand, keep dynamic balance, but this round of the pressure of the hot streak brings to the enterprise supply chain will continue for a period of time.

 “Now days pass rendering both production and marketing of a good situation, the supply pressure is very obvious.” Sapphire substrate production enterprise day pass holdings co., LTD., marketing director Guo Yuebo in an interview with “China electronics news” reporter also emphasized the supply pressure.