The increase in production capacity has slowed down the penetration of the 2011 LED lighting market.

Recently, South Korea's Samsung LED Co., Ltd. announced the launch of five new high- and medium-power LED products with output power exceeding and below 1W, thus officially entering the LED lighting market.

Based on the decline and popularity of LED lamps, many LED application manufacturers in Samsung and China have entered the LED lighting market.

As early as 2010, Japan's first-line lighting manufacturers such as Toshiba and Panasonic, under the leadership of the Japanese government, have lowered the price of LED bulbs and set off a price war.

In 2011, the industry generally released the 2010 global, especially China LED epitaxial chip capacity competition may lead to doubts about oversupply in the market this year.

Chen Bin, general manager of Zhonglong Transportation, told the Gaogong LED reporter that the upstream MOCVD machine will increase by 5 times in 2011, which will definitely lead to 15 times capacity expansion. The backlight is the best release port for this year's expansion capacity. If the backlight growth this year is expected, then the LED price may hold.

On the contrary, after June, with the excess capacity of upstream chips, the overall cost of LEDs will drop by 30%. At present, they have already felt the inventory pressure of several major international chip giants who have cooperated with them for a long time.

For LED luminaire manufacturers, the decline in LED prices is a positive effect, which makes their products more acceptable to users, and they also reduce the cost and gain market profits by improving light efficiency. Chen Bin is on high-tech The LED reporter said.

The High-Tech LED Industry Research Institute (GLII) estimates that LED bulb prices will continue to decline in 2011, and large-size LCD backlights and LED lighting are expected to become twin engines. At present, the LED industry generally estimates that compared with the global LED lighting penetration rate of about 3% in 2010, the LED lighting penetration rate in 2011 is expected to reach 6 to 10%.

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