Chinese LED package manufacturers faced low profitability and higher management risks in 2014. A company’s yearlong efforts could be futile if there were product quality issues, or a client complained. Manufacturers could face even graver financial consequences leading to their bankruptcy. LED package manufacturers will gradually increase production capacity in 2015, making market competition even fiercer. Manufacturers lacking financial support will find business operations increasingly challenging.
LED lighting is the lighting industry’s future, but it will also be the fuse to explosive industry restructures in the LED package industry within the next 2 years. China’s LED chip industry might be underwater right now, but LED package industry might be the next troubled market.
However, after the Chinese LED chip industry underwent massive restructures in the last few years, the market will gradually stabilize, and companies’ profitability soared. Likewise, the LED package industry will also reach this point. The most important thing for LED package manufacturers is ensuring the company still exists.