In the past 2019-1911, it was particularly “sad” for the LED industry, especially in the field of LED chips. Overcast medium and low-end capacity and declining prices have been shrouded in the hearts of chip manufacturers.

GGII research data show that the overall scale of China’s LED chips is about 23.8 billion yuan in 2019 and 27 billion yuan in 2020. The LED industry chain will enter a low-speed growth period in the next few years.

In 2019, the chip overcapacity was serious and the production rate was too low. Some enterprises went to inventory and cut prices, and the price fell by 30-50%. Many LED chip enterprises halved their profits or even lost money.

Earnings data also prove this. From the perspective of other large chip manufacturers such as San’an optoelectronics, Aoyang Shunchang, jucan optoelectronics, Huacan optoelectronics, Qianzhao optoelectronics and Shilan micro, which have disclosed the 2019 annual report and 2019 performance forecast, the net profit decreased to varying degrees year-on-year.

However, in the face of the impending “crisis” of the chip market, enterprises have also made corresponding preparations, upgraded their product structure one after another, and made efforts to apply market segments.