General situation of LED industry development in China

In the Olympic Games, World Expo Asian Games, and the ten "city lights" to promote, LED has become the protagonist of the lighting market. China, the world's largest producer and exporter of lighting products, is bound to become the world's largest LED supply and demand. In the country to promote the upgrading and development of new industrial growth point of the strategic task of guiding the optimization of the industrial structure, LED has become the focus of the development of the local government, Dongguan, Huizhou, Foshan, Shenzhen, Dalian, Nanchang, Xiamen and other local governments have formulated the rules of Industrial Development strategy plan, China set off a wave of investment boom LED. However, compared with multinational companies, China's LED enterprises in many areas there is still a big gap. How to effectively enhance the core competitiveness of Chinese LED enterprises, and actively participate in the globalization of competition, is an urgent need to consider the issue.

LED bring about changes Chinese

Lighting products as the world's largest producer and exporter, 230 billion yuan annual output value of domestic, so broad market space makes the domestic and foreign LED giants of the China market has been expanding fall over each other. With the widespread application of LED technology, the rapid rise of domestic LED enterprises and the rapid expansion of production capacity, in order to compete for the LED market raiders. From the domestic LED industry leading enterprises to expand production capacity of three optical Silan to "befuddles" Elec-Tech, LED industry boom almost swept the entire industry, has the potential to make most people in the industry called for vigilance bubble. In recent years, China's LED exports occupy a large share in the world market, showing an increasing trend year by year. But we should be clear that our advantage is reflected in the low price of raw materials and labor, this advantage is the most can not stand the blow, low price competition will inevitably disrupt the order of competition. Therefore, it is necessary to set up the corresponding industry standard from the national standards in the process of improving the industry environment.

The competitive advantage of China's LED industry

Entered the LED market lower threshold

Due to enter the LED market threshold is low, easy to implement rolling development, so the domestic factories do not need to invest a lot of money. Although China's LED industry foundation is relatively weak, but by hiring overseas technical personnel, has made great breakthrough in technology, many enterprises have been independent intellectual property rights, and the overall gap between international companies are also shrinking. At present, some of the advantages of domestic enterprises have core patent technology.

Labor cost advantage

Semiconductor lighting industry, especially the chip package and lighting systems industry, not only is a technology intensive industry, is a labor intensive industry. China has obvious advantages in labor costs, the development of semiconductor lighting industry, can give full play to the advantages of human resources in China, to promote the relevant industries, increase exports, employment.

Industrial cluster effect gradually

Face great temptation semiconductor lighting market, the domestic LED companies and the joint efforts of the government, in the northern region of the Pearl River Delta, Yangtze River Delta, the southeast region of Beijing and Dalian and other four regions, China's LED industry has basically formed a relatively complete industrial chain. Overall, China's LED industry pattern of high degree of industrialization in the south, while the north relies on many universities and research institutions strong R & D strength. In the geographical distribution, the Pearl River Delta and Yangtze River Delta is the most concentrated area of domestic LED industry, the downstream industry chain is complete, the relevant enterprises more than 80% of the domestic LED industry, is one of the fastest-growing region, industry obvious advantages. LED related equipment and raw materials suppliers have settled in the two regions, with the international market application of convenient connections and create good service and market environment for the development of LED industry, industry cluster effect is gradually emerging.

Industrial policy support

China's annual electricity used for lighting is close to 250 billion degrees, as long as the 1/3 use of LED lighting, a year can save 80 billion kwh, equivalent to the total generating capacity of the Three Gorges power station. Therefore, the policy will increase the promotion of efficient lighting products, and vigorously promote the use of energy-saving, guide and promote energy-saving lamps.

Is not easy to form a monopoly market

LED application from the domestic market, domestic architectural lighting, display and traffic lights together accounted for 56%, the total market is growing fast, but relatively dispersed, technical standards are not unified; application in small size backlight car total only 7%. But the general lighting market is the main market for the future of LED, the domestic market capacity, the end consumer market is also relatively fragmented, not easy to form a monopoly. Therefore, domestic enterprises have relatively broad living space.

China LED industry disadvantage and risk

Domestic LED product technical level and there is a certain gap in overseas, for high-end customers at a disadvantage. At present, domestic enterprises generally small scale, weak technical strength, product grades are relatively low. The high performance LED chip and power LED chip, can provide domestic is rare, high-grade epitaxial chip high efficiency, high reliability and other LED applications almost entirely dependent on imports, which seriously restricts the development of China's LED industry. Coupled with the lack of domestic products in the LED substrate, epitaxy, chip and other upstream manufacturing base, as well as the lack of core patents, will make the domestic LED industry long-term development constraints.

Domestic LED industry also faces many risks, including technical risk, industry risk transfer and macroeconomic risk. LED is a high-tech industry, production technology and product performance needs to be improved, the industry can continue to closely with the LED industry technology