LED industry downturn, LED factory in the first half of 2016 Taiwan capital spending sharply reduced by thirty percent than the same period last year, the association for the advancement of the photoelectric, points out that this will not benefit the LED factory long-term business development.

Also LED industry is through the production, the factory consolidation, and adjust the product line, and the development of high brightness four yuan, invisible light UV/IR, automotive products such as niche applications such as strategy, the range narrowed, revenue decline and losses to through the process of transformation.

LED market conditions after turned down two years ago, the situation is still grim. From operating conditions for judgment, for the first half of this year, Taiwan LED chip lei, grain, and encapsulation, module production decline is inevitable, and capital spending projects, one of the indicators for the long-term development, compared with 2016 in the first half of 2015 decreased by thirty percent, according to the industry is still in the doldrums.

In the first half of this year only crystal electricity, light, lite-on, ronda, glory and giant energy as a new technology and equipment investment, capital spending most of the rest of the industry have a sharp contraction.

In the first half of this year, according to Taiwan association for the advancement of photoelectric lei Taiwan LED chip, grain industry in the production of about 17.2 billion yuan (nt), decline of 12%, and encapsulation, module production decline 6%, to $41 billion.

In the first half of 2016 top ten LED epitaxial slice, the grain producers revenue decline 12%, losses from 047 million to 4.287 billion t, and also sharply reduce capital spending by 26%, only nt $1.65 billion. Leading factory crystal electricity through production, factory integration and adjustment of product mix, etc., the cumulative revenue decline there were signs of slowly shrink from month to month, but still lost $3.54 billion during the first half of 2016. Only with four yuan products as the main body of light lei and ding yuan to pay out the profit performance.

And in the first half of 2016 top ten LED encapsulation, module manufacturer's top ten total revenue decline 5%, earnings cut from nt $1.08 billion to nt $540 million, dramatically reduced capital spending by 31%, up to nt $1.36 billion. Leading light revenue was flat, net profit growth of 4%, the best performance.