From 2014:
The capacity of LED manufacturers has been strategically increased
According to AIVtech chairman and CEO JinLin Guo, they launched production of LED-backlit LCD TVs in April 2010 and expect led high bay light TVs to contribute a sizable portion of their revenue in 2010.It’s said that they have already established relationships with many well-known European retailers and distributors and have obtained excellent feedback following their first order from Europea Trade in June."
Along above cooperation, the ODM contract between AIVtech, Europea Trade and its trading partner Q Media is for the manufacture of LCD TVs that employ LED backlighting, offering improved lifetime, brightness, and picture quality versus traditional fluorescent tube-backlit LCD TVs.Due to the scarcity of electronic components from upper stream, for production capacity entire LED industry has shrunk significantly. Also, many major international LED manufacturers have extended its delivery time to reflect to this emergency. As today, the lead time has been stretched out from 5 weeks to nearly 20 weeks. This bad situation swept the LED industry, which is in rapidly growing stage now. The serious impact does not only affect LED manufacturers, but also for distributors and trading companies who are facing huge financial penalty by postponing delivery schedule. The estimated amount of damage is more than several billions US dollars.
According to LED industry professionals, the chaos of electronic components shortage is expending to all relative businesses. The demand of LED is growing in a much faster pace than anyone expected. The entire market is disturbed by some distributors fighting for inventory. Since the end of 2009, the lack of electronic components led to price increase for metal raw material. Today LED industry also shares the panic for lacking of electronic components.
Based on the report published by LED professional media, LEDinside, although the capacity of LED manufacturers has been strategically increased, the shortage of blue jewels and other essential components is still enormous. As 2010 Q2, the price of components has doubled, and created a disaster to LED Linear high bay light. According to The Commercial Times, the most popular business newspaper in Taiwan, points out, besides the lack of LED chips, the shortage of electronic components is another critical reason for decreasing production. Furthermore, the demand of LED lighting is exceeds supply significantly. The severe shortage situation may lead to battle-for-product crisis, which create huge indirect impact to LED distributors.
Go with the tide, just make sure you don't get caught in the undertow!
