With the localization of upstream equipment, the rapid release of LED chip production capacity, chip prices and the maturing of packaging technology, the cost of small-pitch LEDs is rapidly declining. Since the first half of this year, the intensification of geopolitical conflicts and epidemic fluctuations led to the global economic downturn, LED display industry downstream terminal market growth is weak, coupled with the industry "lack of core price" gradually ebb, LED driver chip market demand decline, prices have also been adjusted back, LED display products overcapacity continues, to inventory pressure remains.
At present, most manufacturers are actively going to inventory, selling inventory at a reduced price to recoup funds, to avoid increasing inventory levels continue to bring financial pressure. Some upstream LED chip factory and packaging manufacturers said, want customers to pull more goods will have to cut prices, so the third quarter from the average unit price of product sales fell rapidly.
In the face of industry risks, how to get out of the "weak period"?
How to get rid of this predicament, is the whole industry is thinking about the problem. At present, the LED display industry is still fierce competition, market demand is low, excess capacity, inventory backlog is serious, to get rid of the current difficulties faced, we must broaden sales channels, expand new application markets, to explore new profit growth points. Among them, the upgrade of display technology is a direction, many LED screen enterprises are also for the Mini / Micro LED and so on to make the corresponding layout. Undoubtedly, the future of high-end product supply will be more and more concentrated in the industry's leading manufacturers, the consolidation of scale advantage makes the leading manufacturers market share to further enhance.
In the domestic end market demand shrinkage, LED display overseas market performance is bright, for the LED display industry has added a new development momentum. China as a more important global LED display production and export base, with the implementation of the "domestic and international double cycle" strategy, China's LED display products to enjoy the dividends of foreign exports is beginning to appear and gradually released, which gives domestic LED display enterprises to develop the international market has brought great opportunities.
At the same time, increase technological innovation, adhere to the research and development research, enrich the product line, to create the core competitiveness of the product is the key. Innovation is the road to change in the development of LED display enterprises, clear innovation development direction, improve the market competitiveness of LED display products, deep cultivation of fist products, in order to further achieve the innovation of LED display technology, thus leading to the expansion of the market.