Prices for 2835 LED devices, currently the mainstream specification among China-based LED packaging service providers, have dropped 50-60% so far in 2015 due to overcapacity, according to Taiwan-based LED makers.
Many China-based LED packaging service providers have been fast expanding their production capacities, the sources said.
For example, MLS has a monthly capacity of packaging 30 million LED chips and will invest CNY2.316 billion (US$364 million) to add an annual SMD (surface-mount device) LED capacity of 133 billion chips, according to the sources. Guangzhou Hongli Opto-Electric will also expand SMD LED capacity.
Price drops for LED lighting products have also led to decreases in LED device prices, the sources said.
MLS and other China-based LED lighting vendors, including Opple Lighting and Foshan Lighting, have triggered a price war for LED light tubes, while Philips, Cree, EcoSmart and Verbatim have lowered LED light bulb prices in the international market, the sources indicated.
Consequently, Taiwan-based LED packaging service providers decreased quotes by an average of 15-17% in first-half 2015, the sources said.
