LED market after two years ago, the current situation is still grim a sudden turn for the worse. To judge from the operating conditions in the first half of this year, Taiwan LED EPI wafer grain, and encapsulation, module production decline is inevitable, industry is through the cut, and the whole plant, and adjust the product line, as well as the development of high brightness products four yuan, not visible UV/IR, vehicle niche application strategy narrow, revenue decline and loss rate, through the transformation process. The first half of 2016, Taiwan LED EPI wafer industry decline 12% in grain output of about 17 billion 200 million yuan, and the output module, package, recession in 6% amounted to 41 billion yuan. The first half of 2016 the top ten LED silicon epitaxial wafers, grain manufacturer revenue and net profit, capital expenditures and other operations, as shown in table 1. The top ten of total revenues in the first half of the 12% recession, losses expanded from 47 million to 4 billion 287 million yuan, while capital spending significantly reduced 26% amounted to 1 billion 650 million yuan. Leading crystal power plant production plant, through the integration and adjustment of product mix, the cumulative revenue decline has been slowly reduced signs of monthly, but the first half of 2016 is still a loss of 3 billion 540 million yuan. Only four yuan is the main products of the guanlei and Ding Yuan in profit performance. The first half of 2016 before the ten LED package module manufacturers, revenue and net profit, capital expenditure and other operating figures. The top ten of total revenues in the first half of the 5% recession, profit from NT $1 billion 80 million cut to NT $540 million, capital spending significantly reduced 31% amounted to 1 billion 360 million yuan. Leading billion light business flat, profit growth 4%, the best performance. The first half of 2016 Taiwan LED manufacturers operating figures, the majority continued to decline, one of the long-term development of indicators of capital spending projects, compared to the first half of 2015 decreased by 30%, showing the whole industry is still in the doldrums. Only EPISTAR, Everlight, Lite, Lunda, rongchuang and other manufacturers have made new energy technology and equipment and other capital expenditure investment, most of the rest of the industry was shrinking sharply, is not conducive to the long-term development of business.