Since the beginning of this year, Blu-ray LED has been oversupplied and pressured on the price, which led to the weak operation of the epitaxial plant in the first half of this year. However, the upstream and downstream manufacturers have released the price reduction and deceleration information on the sapphire substrate and LED lighting.
In 2014, the LED lighting penetration rate will climb from 8% to 10% this year to 20%, becoming another major force in digesting chip capacity. Yiguang said that the price of mainstream LED lighting has fallen more than 20% this year. Although it is difficult to get rid of the price reduction trend next year, the decline has the opportunity to control within 20%, which is better than this year.
Yiguang currently adopts a dual-brand strategy on LED lighting, including EVERLIGHT and ZENANO, which have not yet officially entered the profit-breaking period. However, as the price of the chip is depressed and the terminal demand climbs, Yiguang estimates that the LED lighting penetration rate will be 20% next year. With only 8% to 10% of this year's penetration rate has grown significantly.
In addition, on the sapphire substrate, the price has temporarily bottomed out. The sapphire substrate factory pointed out that the ASP of the sapphire substrate changed little in the second quarter to the fourth quarter of this year. Compared with the earlier 9 to 10 seasons, the price is It has already bottomed out, and it remains to be seen whether the price will show a V-shaped trend or an L-shaped trend.
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