Dongguan development of billions of LED industry questioned

May 27th executive meeting of the municipal government through the implementation of "measures" in Dongguan City, promote the development of LED industry, and strive to create LED billion dollar industry. However, not long ago, Shenzhen abolished the implementation of 4 years of LED industry planning, the industry also has LED ceiling argument.

A legislative approach, a waste regulations, two cities, different performance. Shenzhen LED has become synonymous with China's LED, it's waste regulations, the release of the LED market in Dongguan what signal? Dongguan at this time the development of billions of LED industry, and whether fly?

Shenzhen waste regulations to release what signals

Background: in mid March, in the form of "government gazette", Shenzhen abolished the notice on printing and distributing the development plan of LED industry in Shenzhen (2009-2015). This is the country's first LED industry planning, and now many cities to develop the relevant planning, many are based on this model.

Shenzhen: China was indeed in the LED industry development is the benchmark significance, but in a period of time, Shenzhen also appeared LED business closures, but we also want to see, A shares in the LED sector, Shenzhen accounted for half of the country, there are nine companies such as Lehman photoelectric. In fact, now the Shenzhen LED market, already can ", large enterprises emerge of itself and perish of itself" bigger and stronger, small enterprises of natural selection. This is the normal market track. In turn, we look at government planning, are not fully developed in the market circumstances, a way to support the industry. Now that the Shenzhen market has matured, this repeal is understandable.

Shi Guangdian: our company was planning to move to Dongguan last year. At that time there have been LED industry planning may be abolished the wind. We are concerned that the industry planning content is to support the small, weak, this is advantageous to our small and medium enterprises LED. But now when Shenzhen City giant LED up, the government does not need to continue to mobilize resources to support, so we are still in the growth of these enterprises, they live by water, to be able to get more support in Dongguan.

Dongguan semiconductor lighting industry association official: the introduction of the Dongguan planning, there are many policies to support enterprises. Our association will do an annual statistics every year, Dongguan is now more than 180 companies to investigate the scale of LED. The size of Shenzhen LED companies have thousands. The development of the entire market in Dongguan is still not mature enough, so we need to have a plan to guide. Now we are planning to do in 2015, boldly imagine if the Dongguan market can be developed, then the Dongguan LED industry planning and implementation measures, is likely to abdicate, to regulate the power to make concessions to the market.

Overcapacity exists

Background: the country is now repeatedly LED companies closed down, the industry is worried that the entire LED industry has already appeared in excess capacity, for fear that the LED industry has become the second photovoltaic industry.

Shen Haiyi: Dongguan is a LED lighting demonstration city, this year is the last 200 thousand years to promote the goal of the province, as well as to promote the 150 thousand street lights, from the point of view of government procurement, the market demand is great. And this year to promote indoor lighting, which is a big market. So absolute surplus does not exist. A few years ago, the development of the LED industry is relatively fast, low-end packaging more downstream enterprises. However, the entire market in the chip and equipment materials, is still relatively weak, which resulted in a relative surplus.

Jiang Lin: I agree with the view of relative surplus. LED is an energy saving products, from the replacement of traditional lighting market, LED production capacity is not excessive. There are so many street lamps, so many household lamp demand, absolute surplus does not exist. However, the relative surplus, the excess is what? Now the bulk of closures, are those in the lower reaches of the low-end packaging enterprises do. There are spare parts, there are venues, you can piece together into LED lamps. Early development may be very fast, and even done a lot, but soon the competitiveness of this product down. If Dongguan does not plan to the upper reaches of the LED industry, continue to take this low-end Road, it will inevitably go to excess.

Huang Mei: at present, the entire LED industry situation is not full production, just in time, the consumption market is limited, at this stage, the market has not fully liberalized, the use of LED is still not fully extended. So there is no excess capacity, but the market has not fully developed.

Dongguan semiconductor lighting industry association official: now Dongguan LED lighting industry, upstream of gallium in semiconductor, blessed in chip, but actually doing very well is not enough. There are a number of downstream KingSun packaging enterprises, also has the power to do the Delta and so on, the more developed downstream. But to talk about the core competitiveness, or to the upper reaches of competition.

LED how to support

Background: Dongguan's support measures include the LED major achievements transformation project, the core technology research projects, product promotion and application, product testing and certification, as well as professional and technical personnel training and other financial assistance policies. For the transformation of major achievements, 70% loan interest subsidies given; and the introduction of the new deal to foster innovative enterprises, innovation oriented enterprises reward up to $1 million.

Jiang Lin: look at this plan is done well, it depends on whether it is in the lower reaches of the downstream wandering, or make up their mind to support the upstream. Dongguan is now in the upper reaches of the LED industry and there is no absolute advantage, some companies have accumulated some capital in the downstream, this time it is necessary to guide these capital feeding upstream. From Dongguan