Analysis of the impact of devaluation on LED industry

December 3rd after the previous trading day, the central parity of RMB against the U.S. dollar depreciated by 156 basis points, the RMB exchange rate fell for the fourth consecutive trading day, the inquiry system closed at $6.8870. Analysts believe that the RMB against the U.S. dollar in the short term or in a weak state. The impact of devaluation on the LED industry, the industry is not the same.

Chinese semiconductor lighting network connection reporters on the issue of Hongkong zhenminglee group senior manager Mr. Tao Jiuxiang, he believes that in the developed economies into recession, a significant slowdown in external demand situation, the decline in exports is a common phenomenon in the world, the RMB against the dollar is not a trend, the long term trend of appreciation of the dollar will not. The impact of the financial crisis on export-oriented export-oriented enterprises LED is still relatively large, in 2009 this year, the growth rate of overseas orders for such enterprises will slow down.

But for the downward pressure on the yuan, mainly for the domestic market LED enterprises still have different views, Shanxi Guangyu Power Co. Ltd. Marketing Manager Zhong Mingzhu introduction Guangyu export business accounted for about 20% share of the company, the settlement in the international market also had to adhere to the quoted in RMB overseas market atrophy will not affect the enterprise the development of the financial crisis is the impact and opportunities, because of a series of recent economic policy promulgated by the state, the company will continue to increase research and development efforts, vigorously develop the domestic market share.

Recently, a series of economic policies of the government on the impact of China's macroeconomic and LED industry will not appear in the short term. According to the time difference between the project approval and the progress of the project, the effectiveness of the stimulus program will be in the second quarter of 2009, the gradual emergence of the real economy. LED companies to participate in government projects will be delayed time.

At the same time for the international market LED whether the enterprise can help save the devaluation and weak export business at present, and realize economic growth by boosting exports, devaluation to promote exports has a time, a lot of technical content is not high LED downstream packaging and application in the enterprise may not survive the positive effect of the day.

Foreign trade market share than the major enterprises need to improve the sensitivity of the market and its own core competitiveness to deal with the crisis. As of mid December zhenminglee upcoming production of chip production line, with R & D is to reduce the cost, a good example of optimization and upgrading of the manufacturing industry chain, so the LED can not only reduce the product cost, but also makes Neoneon into a set of packaging applications - chip on the lower reaches of the full integration of resources of enterprise. Improve the cost of products to make a greater range of overseas markets, in addition to mature markets such as Europe and South America, the Middle East is also a strong purchasing power of unlimited business opportunities, found a safe haven in the crisis". These are the best return on independent innovation and long-term investment in technology research and attention.

Hongkong zhenminglee group senior manager Mr. Tao Jiuxiang believes that the current financial situation of policy should be targeted to LED enterprises to improve the VAT rebates, export tariff reduction, and relax the bank for small and medium-sized enterprises export industry loan limit and improve the investment environment to help more enterprises.

According to the reporter preliminary understanding, in the Pearl River Delta region, backlight products demand financial crisis caused by foreign small and medium size decreased, while Europe and the United States orders decreased, the LED packaging enterprises export trade type face the pressure of survival, leading to the enterprise market share decline LED many downstream technical content low shrinkage, some companies were forced to shut down or transition. Optimistic about the domestic landscape lighting market in the second half of the year because of the reduction in the volume of landscape lighting business and the temporary downturn. From China's LED industry shows that China's foreign trade situation is under great pressure, the devaluation of the RMB may well be: market hope through exchange rate adjustment, tentative devaluation, but its role to the enterprise has a slim chance of survival. With the increase of China's economic growth, the economic stimulus policies in an orderly way, the real difficulty is the past, now, in the future for a long period of time through the LED industry will enhance the independent innovation to enhance the competitiveness of the LED industry is one of the few next year will not present declining industries.