Too many LEDs in 2011/12?

2010 provided many stories of increased activity relating to the growth of LED applications; MOCVD equipment shipments and expanding alkyl chemical manufacture being just two. It is quite interesting therefore to note IMS Research's report in which they state "LED supply growth is significantly outpacing demand growth creating a widening surplus and increasing pricing pressure". IMS Research expect the current wave of MOCVD kit shipments, especially to China, to continue and thus increasing the supply imbalance in 2012. Perhaps the good news is that they think that the oversupply will be constrained by the lack of substrates and TMG alkyls.