Blind expansion of the LED industry has become a problem industry

LED blind expansion of production capacity, terminal demand market has not kept pace with. According to CAITONG Securities Research Report data, in 2012 China semiconductor lighting industry although the overall growth of 23% over the last year, but the growth rate slowed down and the pace to become the lowest of the year. Emerging LED industry problems, competitiveness needs to be improved.

A local problem, repeated investment, LED industry be ripening".

LED blind expansion of production capacity, terminal demand market has not kept pace with. According to CAITONG Securities Research Report data, in 2012 China semiconductor lighting industry although the overall growth of 23% over the last year, but the growth rate slowed down and the pace to become the lowest of the year.

Question two, the lack of core patent technology, industry led out of control.

Global patent core technology is mainly in the hands of giants such as OSRAM, germany. Thousands of LED companies in China, only a few dozen chips and epitaxial enterprises, such as the core of the chip is highly dependent on imports. Lack of core technology leads to homogenization of products, price war intensified.

Question three, the lack of uniform standards for the industry, the new sunrise industry is facing the risk of premature aging.

The majority of LED products take the five star building materials wholesale sales channels, quality supervision departments are difficult to monitor. Quality inspection departments to apply the general standard of ordinary lighting inspection LED lighting products, it is difficult to filter LED inferior products. Products on the market successfully, inferior products hurt consumer confidence. LED product market water is very deep, it is easy to get into the eyes. To 3.8 watt bulb lamp, for example, the brand products sold for $19, the lowest market price of 2.8 yuan. "Electric soldering iron factory" (power + shade + chip) production of poor quality lighting products, there are serious security risks.

Question four, corporate capital chain tight, foot incident occurred.

Insiders revealed that the male record LED lighting factory suppliers in arrears payment, about half of the check. The current economic pressure, LED industry funding chain tight, a link in the middle of a problem, it will trigger a chain reaction.

Experts suggest that as soon as possible to develop a unified industry standards, accelerate industrial restructuring and upgrading, and actively layout of the industry at both ends of the smile curve, enhance the international competitiveness of LED strategic emerging industries. China Lighting Industry Association Secretary General Dou Linping suggested that the relevant departments should be introduced as soon as possible a unified industry standards, strengthen the linkage of regulatory agencies, regulate the LED market, and create a favorable environment for development. At the same time, strengthen the protection of intellectual property rights, and guide enterprises to strengthen the core technology research and development, enhance market competitiveness. "To break the impasse in the middle reaches of the excess capacity, enterprises should accelerate technological upgrading and extending upstream and downstream, to extend the industrial chain through vertical integration, fully tap the market demand, establish competitive advantage, cultivate independent brands. Chai Guosheng said. Essence securities relevant responsible person believes that, from the industrial chain, the enterprise should be based on the development of the potential of the upper reaches of the layout of the upstream and downstream of the smiling curve lighting applications.