The data from Semiconductor Lighting Industry Association of Guangdong Province shows that the Order Status of LED businesses has performed well since this year, it increased by 20% -30% over the same period of last year and slightly declined in profits but not obviously, which would be the clear signs of the recovery of LED industry.

According to the report of the first quarter of this year, the total revenues of 25 key companies of LED industry was 9.888 billion Yuan, an increase of 12% over the same period of last year, the total net profit was 719 million Yuan, a decrease of 3% year on year. However, the reduction of subsidies may be one of the reasons why the net profit declined.

Some analysts said that after two years of depression in the LED market, LED industry is more rational than before. In addition, the policy benefits have rolled out more frequently, it is sure that the LED industry will usher in a small peak in the future, but that does not mean that LED industry will outbreak in the short term, while the LED market will show a steady growth trend.

A research report from CSC stated that the significant capacity expansion of the global LED industry in 2010 resulted in the continuous weak demand for downstream applications in the following two years and the imbalance between supply and demand. In 2013, this non-rational and emotional disorder investment has ended; the LED industry tends to be healthy. But the report warns that the market competition is still fierce, the prices will continue to decline.