China LED or save speculation

Chinese LED or speculation. This leads to the dilemma of China's LED industry. Right now, the only thing that these companies can expect is the government's single, largest and least measurable customer, but you have to be careful when you're facing a customer who's just a government. The business of government procurement is often slow, and whether it can be largely determined by the fact that you have a strong relationship with the government, rather than how good your product is.

Now many Chinese companies, entrepreneurs, investors and billions of government funds are crazy into LED (Light Emitting Diode) in the field of General Electric in the invention 48 years ago can really make China lead in the global science and technology field?

LED, the light emitting diode, since the invention of Syracuse since half a century ago in the U.S. state of New York came out, many people predicted that LED will replace the incandescent lamp invented by Edison become the most main lighting.

In contrast, LED has many advantages, the most critical is that it is longer than the traditional incandescent and neon lamp life, and the same amount of energy consumed less luminous.

So it seems that the application of LED is not a problem. But in fact, to produce a LED lamp covers the packaging technology and cost is higher than the traditional light bulb. In recent years, LED technology has made very significant progress, but LED is a solid-state device, involving complex semiconductor layer technology.

LED requires a large number of complex circuit design and heat sink, very sensitive to temperature. Each individual light emitting diode is the size of a Christmas light, producing light. Therefore, to release the same as ordinary street lights, LED lamps need to be arranged in dozens of such light-emitting devices.

The same with non polluting automotive engines and jet aircraft, the universal use of energy-efficient LED lights will also become a new bright spot in the future development, closer and closer to our lives.

In China, now the commercial market for the unprecedented enthusiasm for LED, the value of the tens of billions of dollars in the market will emerge from a number of leading enterprises in china.

Regardless of the number of firms engaged in LED production or the amount of capital invested in this area, China is larger than any other country in the world. On the Alibaba website, there are more than 200 Chinese companies in the sale of LED products, more than LED times the same production company in Taiwan. In Shenzhen alone, there are 28 companies in the supply of LED lamps or light bulbs.

Last year, I took part in a trade show in the optoelectronics industry, hundreds of companies participating in the exhibition, but most of them are engaged in the design, production and manufacture of LED street lights, traffic lights, and control systems.

See these, you can not help but recall that China is not everywhere with LED traffic lights. In fact, although the technology has matured, but LED traffic lights are still not common. But the Chinese government is now willing to invest a lot of money in the future to achieve this vision. The promulgation of this policy has attracted a large number of companies to enter this field.

I have a good example to illustrate this point, our company has worked with two business owners, one of which is a leading jewelry jewelry industry, they are investing in LED street lamp project. Moreover, many of our venture capital and private equity funds are also very eager to invest in China's LED industry.

Of course, the future of foreign LED confidence, but this enthusiasm can not be compared with china.

If you want to succeed in this industry, you must have advanced large-scale production technology and scientific research. China is fortunate enough to have these two important factors.

However, even these two points can not solve the problem of LED civil. LED lamp energy saving effect is not short-term, it takes 8 to 10 years to reflect, that is, in order to achieve environmental protection, buyers need to pay a higher price today. How many families or individuals in the real world would be willing to pay the price to buy the same product that would take so long to balance?

This consideration, it is only the government to take the lead to pay. The Chinese government is the most generous in this regard. From top to bottom, governments at all levels are planning to replace the existing traditional street lighting with LED lights in the future. In theory, the market value of this part of the market has been up to tens of billions of dollars. It's no wonder that millions of Chinese companies are chasing the market.

All the governments in the world are not as decisive as the private sector in terms of revenue and cost, but in terms of energy conservation, the Chinese government has shown great determination and determined to support the domestic LED industry. If successful, a large number of government procurement will reduce the cost of production so that LED products to achieve the balance of price competitive advantage. In this way, LED can be accepted by the world, and China's LED market will be the world's largest and most dynamic.

In China, I have not personally seen LED street lights. However, the samples from the exhibition seems to be of good quality. When the government orders falling down, who can see the opportunity to receive these orders we are still guessing them.

This leads to the dilemma of China's LED industry. Now the only thing that these companies can expect is the government's single, largest and least measurable customer