LED price breakout city lighting and energy-saving emission reduction hook

Although the LED final and new energy vehicles, bio pharmaceutical, photovoltaic, nuclear power are included in the "decision" of the State Council on accelerating the fostering and development of strategic emerging industries, but compared to the "pilot city quickly expanded to 25 new energy vehicles, nuclear power generation, because of super bacteria and tick attention the purpose of biological pharmacy", public opinion on the market was a smash hit on LED seems to be slightly inferior.

In the "decision" of the State Council on accelerating the fostering and development of strategic emerging industries published as an example, in September 8th, China's leading shares three LED photoelectric (600703, shares) to a slight decrease of 0.04% per cent, but because of new energy vehicles and other upstream resources concept famous Baotou Rare Earth (600111, shares), rising nonferrous (600259. Shares) have closed in the limit. Dongguan reported by the LED chip price of nearly 30%, the impact of the news, the enthusiasm of investors to LED concept significantly cooling, at the same time, and even insiders pointed out: China's LED has been reduced to overcapacity industry.

LED investment growth

Large projects can be heard without end

Conclusion excess capacity is not empty talk, public information, the cost of LED lighting products to achieve universal standards under the premise, the Agency predicted that in 2010 China LED industry output value will exceed 150 billion yuan, and this figure is two times that of 2008. More industry experts predict that this year the amount of investment in the domestic LED industry will reach 60 billion yuan, an increase of $about 10000000000 compared to last year's $500%.

But even the industry have been alert to the signal out of the excess capacity, such as "Xi'an high tech Zone and Dongguan KingSun Co. Ltd., Xi'an Jia Ye energy technology company signed a total investment of 680 million yuan of large power LED optoelectronic industry base project generous cooperation" is still in "can be heard without end, only a short while ago Wuhan - Optics Valley Chinese" (Wuhan state high tech Industrial Development Zone) LED investment boom is copied again and again and again throughout the country.

LED has been upgraded to mature industries

After all, so much sought after investment in the LED industry benefited from: LED lighting products highlight the advantages of the integrity of the industrial chain, China's silicon, sapphire and other upstream LED rich resources, low barriers to entry barriers.

According to the reporter, first of all, with 40 Watt LED lamp as an example, the 90% energy-saving incandescent lamp, life up to 20 thousand hours, is the service life of the incandescent lamp (3000-5000 hours) more than 4 times; at the same time, LED upstream and downstream segments out of "purification of raw material - slice - Packaging - synthesis of each industry sector in our country has been quite complete; in addition, as the LED chip production of raw materials, abundant China Silicon reserves, through synthetic quartz material - Sapphire supply but there is no vacancy; the most important is the LED industry, the initial investment is only 100 million yuan, industry access to low threshold to promote projects have been launched around.

In view of this, and the energy storage technology which is difficult to break through the photovoltaic, wind power and new energy vehicles of different LED, the development of nearly 40 years of electro-optical conversion technology has been more mature, and stand in Wuhan Boneng New Energy Technology Co., Ltd. chairman Wang Baocheng, the only problem of trapped LED industry disturbance in the price.

LED subject to price constraints

Bottleneck Breakthrough is only a matter of time

"3 years ago, 40 Watt LED lamp factory price is about 300 yuan, and now most of the products are priced between 140-160 yuan, chip prices basically maintaining a 20%-30% annual decline, and on the basis of price reduction, past 5-6 lumens product now has been upgraded to 7 lumens (product quality), it can be said LED lighting products prices fell significantly. Wang Baocheng introduced to reporters.

Nevertheless, the biggest rival LED light bulb price is only 20 yuan, nearly 8 times the price gap, a serious problem with the popularity of LED lights. "The cost of LED lights to drop to the same incandescent lamp is not realistic, but according to industry practice, LED lights if the price dropped to 40-60 yuan (3 times of incandescent lamp) this range, consumers can accept, LED will truly replace incandescent lamp, according to the current pace of development, and soon LED we can achieve this goal, Wang Baocheng believes.

Overcapacity origin

Policy support is not in place

In the interview process, several industry insiders LED does not care about the problem of overcapacity, Wang Baocheng told reporters, "at present, the domestic LED production capacity is surplus, but the main problem is: the industry are relatively concentrated in sections - Packaging - synthesis after three sections in the primary market investment, while the upstream raw materials (silicon and sapphire) purification links, because the investment is large and difficult to achieve scale, has been the capital of relatively cold. "

The fact is also true, public information, in the industry chain, LED epitaxial wafer with LED chips accounted for about 70% of the industry's profits, LED applications accounted for about 10%-20%, LED packaging is less than 10%. The layout of China's LED enterprises is the opposite: in more than 3000 LED related enterprises, LED packaging companies more than 1 thousand, LED application class enterprises close to 2000, LED epitaxial and chip companies are only more than and 60.

More noteworthy is that "now on energy saving and emission reduction index of local government and city lighting is not linked, so that power is restricted to pay more attention to the industrial use of electricity, but if on the other hand, through the policy of energy-saving and emission reduction to restrain the local government, will be a substantial increase in LED industry demand, effective release of LED capacity, and to accelerate the industrial development. Two market quotes a LED detonated. "Wang Baocheng thinks so.