Cold thinking on investment enthusiasm of LED industry

Semiconductor lighting (LED) is recognized as one of the most promising high-tech fields in twenty-first Century. It will lead to a revolution in lighting, but also to promote energy-saving emission reduction, environmental protection, building a conservation oriented society to make a significant contribution. The rise of global economic integration, the LED industry is to China industry echelon transfer, which makes Chinese LED industry to achieve leapfrog development possible. At present, China's lighting industry output value of over 160 billion, with an annual growth rate of about 20%, has great room for development. The industry believes that the white LED in 3~4 years will gradually enter the field of general lighting, considerable development prospects.

The prospect of semiconductor lighting, has led to the domestic LED investment boom, many regions have launched LED production line. But it should be noted that in the LED industry development path, the direction of investment and how to break through the patent and other issues, companies and investors should calmly think, in order to correctly grasp the direction of development.

Here are a few points that companies and investors need to consider carefully:

1, China's LED industry is still in the initial stage of rise, relative to Japan, the United States, Germany and other countries is still very weak. LED industry is a capital intensive and labor-intensive high-tech industries, investment intensity, high technical difficulty. Some other industry funds have entered the LED industry, contribute to the formation of the scale of the industry, but it is difficult to quickly see the market efficiency. As a result of the formation of mature production technology and products, the market will also need some time to accept, so it is not as long as the funds can be seen immediately see market efficiency. Investors entering the LED industry should be fully aware of this.

2, the domestic LED industry competition has been very intense, mainly in the upstream industry investment slightly less, and the downstream industry in a rush, probably will inevitably lead to duplication of investment, blind investment or bring vicious competition. In the choice of starting point should be the appropriate choice of the threshold is relatively high and less competitive industries, from the beginning in the price war, and should choose the automatic production line of investment, the formation of scale as soon as possible, only the formation of scale to produce a stable, long-term and significant benefits.

3, LED industry has not yet formed a large scale and market efficiency, after 3~4 years of development, LED will gradually enter the field of general lighting, in order to have a considerable scale of development and market efficiency. LED great potential for development, but now the technical level, the cost can not be significantly reduced, investors should choose a good time and investment.

4, the competition of high-tech industry is the competition of intellectual property. LED related patents are very large, for the core patent manufacturers, it is easy to create a monopoly in the market situation. And other manufacturers have to avoid its key technologies related to the loss of market opportunities, so the lack of R & D capacity of the manufacturers, it will be difficult to survive in the industry.

5, investors in the choice of entry field, should fully consider the enterprise technology ability and experience and talent reserves, must have a mature industrial technology and a set of R & D, production management, marketing as one of the support team. Engage in academic and research and engage in industry is different, it is easy to cause the investment according to the plan to recover the situation.

Source: China Semiconductor Lighting Network