TrendForce: coronavirus has limited short-term effect on LED industry
In the short term, the outbreak of coronavirus only has a limited effect on the LED industry. This conclusion is drawn by market researchers because of global overcapacity.
The researchers of Trendforce write: "The number of LED manufacturers in the core areas of Wuhan is limited". "Only a few manufacturers are involved. The LED manufacturers in other parts of China are limited in their production by the slow pace at which the work will resume, and possibly workers can not return. "
According to Trendforce, since 2019 the LED industry is dealing with an oversupply and there is sufficient stock for sale, so the impact in the short term will be small. The impact of the coronavirus in the medium to long term will depend on the rate at which production is resumed.
"On the demand side, several companies are beginning with placing orders earlier and stockpiling', the researchers say. "This can cause possible price increases."
(Source: LED Magazine)