China's LED industry contrarian rise in 2009 growth of 12.6%

Is affected by the global economic downturn, for the 2009 IT industry and semiconductor industry, whether it is global or Chinese, is since 2001 the industry decline again, significant decline in a year. LED is a typical semiconductor devices, but the decline in the overall environment of the semiconductor industry, LED industry Chinese 2009 includes a substrate, epitaxial, chip, package, has achieved the output value of 22 billion 20 million yuan, compared with 2008, the output value of the scale of the growth rate reached 12.6%, the overall industry downturn in 2009 to achieve a contrarian growth, as a product of China highlights the development of the semiconductor industry in 2009.

From the industrial structure, China packaging industry is still occupy the largest proportion of 2009, packaging industry output value accounted for 87.6% of industrial output value of LED. But with the government to support the upstream epitaxial, chip industry development, on the one hand, investors are optimistic about the potential of the LED market, for the epitaxial, chip link investment continues to improve. On the other hand, the existing epitaxy, chip manufacturers are actively expanding production capacity. Driven by the new investment and the expansion of enterprise driven, China epitaxial, chip industry continued to maintain a rapid development, the proportion of the industry has gradually improved. In 2009, China's LED epitaxial industry reached 700 million yuan, accounting for the total industry of the chip industry reached $1 billion 930 million, accounting for 8.8% of the overall industry. The substrate industry is limited to the technical aspects of the reasons for the slow development of the industry.

The development of LED industry in recent years has been the strong support of national and local policies, the state will power LED, InGaAIAs four elements of red, green and yellow high brightness epitaxial films as a key national priority to support the industry. June 17, 2003, the national semiconductor lighting project coordination leading group was established, marking the official launch of the national semiconductor lighting project. March 22, 2004, the establishment of the national semiconductor lighting coordination leading group. 2009, China has expanded the Ten City million program to promote the demonstration of LED street lighting. At the same time, in 2009 the introduction of the electronic information industry restructuring and revitalization plan, the semiconductor lighting in a relatively high position. Local government support, at present, China's LED industry has formed the Pearl River Delta, Yangtze River Delta, northern regions, Jiangxi and Fujian, the 4 largest semiconductor lighting industry gathering area. In recent years, in addition to the Ministry of science and technology has already approved the establishment of the base of the 5 national semiconductor lighting project in Xiamen, Shanghai, Dalian, industry of Nanchang, outside Shenzhen, LED new China more projects in East China and the inland areas, the East China and the inland areas of investment has exceeded the traditional LED production provinces in China, LED industry presents the development of the situation the full flowering in the country.

In recent investment in the industry, in addition to local enterprises, foreign-funded enterprises also showed a rising trend for investment. Early, considering the loss of technology, industry, market demand and other factors, foreign enterprises in mainland Chinese investment more cautious, especially for the upstream epitaxial chip, links, foreign enterprises to invest in domestic almost not. But with various factors in recent years began to gradually mature, enterprises put links in the upper reaches of the transfer of production to the mainland, such as Taiwan Dingyuan photoelectric enterprise in Wuhan to invest in the construction of the chip production as the main yuan Maoguang; in 2009, another Taiwan company canyuan photoelectric also officially launched in Shandong Weihai production base of LED investment set up; the same year, Cree also announced the establishment of the chip production line in Huizhou; and the Japanese company Nichia also plans to build factories in China, expansion of its own product line coverage. With the arrival of these foreign-funded enterprises, the development of China's LED industry will be a higher level.

At present, development pattern is different from early in the downstream link based, with the industry environment gradually mature, enterprise technology strength, rapid promotion and other favorable factors, driven by the upstream epitaxial chip link in recent years also showed a rapid development momentum, the average annual growth rate is higher than the package link. In recent years, the main extension, chip manufacturers are expanding their production scale. In addition to the original Xiamen Sanan production base in Xiamen, Tianjin is also set up new industrial base LED; Hangzhou Silan azure is also expanding its extension and chip production capacity, and gradually improve the extension pieces confession proportion; relying on the technical support of the photoelectric Nanchang University in recent years has gained rapid development to Jiangxi crystal. At present, the development of Chinese LED industry is gradually getting rid of the downstream packaging and application for the development of the main mode, while showing a gratifying trend on downstream industries synchronous development, industrial structure upgrading Chinese LED.

From Chinese LED industry future development opportunities, mainly the following several favorable factors. First, the market demand to promote the rapid progress of technology, the cost of production dropped significantly, LED in the lighting market is very huge, unlimited business opportunities. In 2009, all countries in the world to promote LED lighting, LED lighting has been in the field of automotive lighting and street lighting, lighting and other areas of the corridor to obtain comprehensive application and promotion. To attract and promote in the market, LED technology progress in accelerating the pace, the product price is increasing year by year, the cost of production declined at an annual rate of 30%, which greatly shortened the LED lighting to replace the traditional lighting cycle, then, the world will usher in a new era of lighting. At the same time along with the development of LED backlight from small and medium size LCD backlight to large-size LCD backlight field, it is expected that with the popularity of LCD TV as well as large size L