Global LED electronic materials rush to seize the market to see the speed of supply

The global LED industry has been seriously short of upstream electronic components, and the production capacity is difficult to continue. As a result, many international manufacturers have delayed their delivery, which has been delayed from the original 5 weeks to more than 20 weeks! The news is like a fast-starting LED industry. Casting a shock bomb, not only the industry jumped, the downstream of a large number of dealers because of the failure to deliver on time, will face huge contract compensation, potential losses.

The supply chain is unbalanced, and the LED industry shocks the structural crisis

According to industry insiders, the global shortage of electronic raw materials is continuing to burn, LEDs are in short supply due to the rapid growth of demand, and even some dealers attack each other to grab the supply, causing the market to be in turmoil. At the end of 2009, the market was out of stock due to the shortage of electronic upstream materials, which drove the metal price to rise. Now the LED industry is also caught in the panic of insufficient upstream capacity. According to the authoritative electronic media, the upstream production capacity is seriously tight. Although the plan has been upgraded, the sapphire and other related components are seriously short of material. In the second quarter of 2010, the price of raw materials has increased by 20%, and the market disaster has become more and more fierce.

The speed of supply determines the market outcome

Further analysis by relevant research institutions pointed out that due to the structural problems of the upstream electronic materials, coupled with the tight production capacity, it is expected that this “raw material shortage” will be delayed until 2011. Nowadays, the market faces a situation in which the upstream delivery period is too long and the downstream demand is exploding. Compared with the LED manufacturing plant, the delivery timeliness becomes the key to the industry's decision. Only the long-term layout of the supply chain, in the absence of material crisis, LED manufacturers can still accurately deliver the delivery target, in order to meet the rising market demand. Looking at the current global supply crisis, the speed of delivery is undoubtedly the key to the LED industry.