Capital flocked to LED investment overheating worries

Although LED huge market is attracting the brightest capital flocked, but in general manager of the Department of electronics Xiao Guowei seems, LED's core technology by the upper reaches of the enterprise control, and decided the development of the industry and the market. If you want to use a huge domestic market for the core technology, China's LED industry and the international advanced level of the gap will be widening. "

December 16th, card electronic (002197) announced plans to invest 20 million yuan into the LED chip packaging and downstream applications; before this, Sanan Optoelectronics (600703), de Ho Runda (002005) two domestic listed companies through private placement financing totaling 2 billion 300 million yuan, total investment to the field of LED. We have to do with the original Wenzhou shoes boss, do real estate, engage in green projects, have begun to try to do LED street lamp. High tech LED Industry Research Center analyst Zhang Xiaofei wrote in the report.

Two grade market, energy saving and emission reduction "LED behind the grand narrative" has also led to the money chase, LED chip leader Sanan optoelectronics even a new high.

If it is said that the small household electrical appliances market in the Red Sea, then LED or blue ocean. "BDO Runda chairman Wang Donglei described LED as the future of the industry. The industry is called the LED industry, there is no ceiling industry".

LED lighting applications are amazing potential. According to the high tech LED Industry Research Center statistics, in 2009, ten city million pilot has been installed in the city of about 222 thousand pilot lamps, is expected by 2011 the figure will reach 1 million 120 thousand. According to the National Bureau of statistics data, the national number of street lamps in about 90 million. If calculated by 5000 yuan per street lamp, the market size will be close to 500 billion.

Once the technology breakthrough, LED into the field of indoor lighting, LED will promote the development of the market is another thrust. LED has invested 3 companies in Shenzhen Venture Capital Partners Albert Ding Baoyu said.

When all capital snatch LED industry "big cake", the lack of core technology, industry overcapacity problems like these night fog shrouded in dazzling brilliance under LED.

Baulon consulting research director Han Songhan breakdown of the industry problems. Lack of patent and core technology, low overall level of the industry, low level of serious blind investment". Deshida and photoelectric general manager Xiong Yingxiang is more outspoken, "technological progress is slow, low degree of product innovation, technical content is not enough as a result of the lack of core competitiveness. "

Lack of core technology, the problem is coming from the patent. Xiong Yingxiang said that the upper reaches of China's patent applications are less, and to the periphery of the invention patents; downstream applications, although large, but most of them are utility model patents. Due to the lack of technological innovation, the low level of product technology, resulting in market competition, price war and a variety of non-standard competition behavior.

According to relevant statistics, from 1999 to 2009, in the United States to apply for 3312 patents related to the LED, the first place in Japan, accounting for about $50%, the United States accounted for 30%, accounting for China's Taiwan, a total of third, to $second, or $11%.

China's LED industry chain is not balanced, there are thousands of LED packaging factory and a larger number of lighting manufacturers, and in the upstream LED chip, epitaxial development significantly lags behind the multinational giants. Xiao Guowei said that excessive focus on the low-end is inevitable overheating of the industry.

Chaos war started on this. 2009-2010 LED chip packaging enterprises in the large-scale expansion of production capacity in excess of the 2008 recession scenario may reproduce. Liu Zhen, general manager of Shenzhen Quantum Optoelectronics, not without worries.

Zhang Xiaofei said that in this year's investment case, there are 52% cast into the application, the investment in the chip industry 37%, the phenomenon of overheating investment initially. The investment area in 2009, mainly concentrated in East China, the traditional LED industry in Guangdong but less investment.

The high LED committee director Zheng Haowen also believes that from the current number of domestic market and LED industry, there have been repeated investment problems. He warned that the enterprise how to seize valuable technology or have the advantage of the core competitiveness, will be a serious consideration.