Government help low-carbon economy LED upstream business opportunities

25 Premier Wen Jiabao chaired a State Council executive meeting, study and plan to address climate change, decided to China 2020 carbon dioxide emissions per unit of GDP than in 2005 decreased by 40%-45%, and put forward the corresponding policy measures and actions.

As of the first half of this year, China's energy consumption per unit of GDP has been reduced by 13% on the basis of 2005, the total energy consumption per unit of GDP reduction in the plan in 11th Five-Year is expected to achieve the constraint of 20%. In accordance with the standards of the new target, if we do not consider changes in energy structure, our country only needs to reduce energy consumption per unit of GDP in the ten years from 2010 to 2020 20%-25%, so the emissions target is still a reasonable range. We believe there are several ways to achieve the goal: 1, China's current energy consumption level is still a large decline in space, still has the potential to be excavated; 2, according to China's proposed plan, to 2020 non fossil energy accounts for the proportion of primary energy consumption reached about 15%, can directly reduce emissions; 3, afforestation increase carbon sinks, China put forward to the 2020 forest area of 40 million hectares more than that of 2005.

With the promotion of "low carbon economy", the green lighting has been paid much attention by governments. In order to achieve a low carbon economy in the field of lighting, governments have put forward and implement green lighting project. Various countries and regions have formulated policies to support the development of LED lighting industry. In 1996, the Chinese government began to organize the implementation of green lighting project, including the "95", "fifteen" key areas of energy conservation and the "10 key energy saving projects" in the year of 11th Five-Year. In October this year, the national development and Reform Commission and other six ministries issued the "opinions" the development of semiconductor lighting industry, to promote China's semiconductor lighting industry healthy and orderly development, cultivate new economic growth points and promote energy saving and emission reduction. The views put forward, development and promotion of semiconductor lighting will replace incandescent lamps, halogen lamps and other significant energy-saving effect, high cost product development and promotion; parking lot, tunnels, roads and other performance requirements of functional semiconductor lighting, lighting a long time styling products; large size LCD display in the development of the semiconductor lighting products backlight, lighting and other automotive growth potential; semiconductor lighting products development of medical and agricultural special purpose.

China has launched a green lighting engineering, semiconductor lighting engineering, semiconductor lighting technology has supported in the ten major energy conservation projects, demonstration projects, high technology industry technology upgrading and structural adjustment, the 863 special plan in the field of new materials research and development and industrialization projects, have a good foundation in research, initially formed a complete industrial chain, and has a certain advantage in the downstream integration application. 2008 China's semiconductor lighting output value of nearly 70 billion yuan, of which the chip output value of 1 billion 900 million yuan, packaging output value of $18 billion 500 million, the output value of the application of the product 45 billion yuan. In recent years, the rapid development of domestic LED application industry. 2000 years ago, the domestic LED annual growth rate of more than 30%. 2000 -2006, the annual growth rate of about 15%, an increase of more than 40% 2007-2008. 2008 National LED display application market sales of new high, amounting to 10 billion yuan. The scale of industrialization of the development of the industry has a new improvement. 2008, LED shows a large number of enterprises in the application industry and performance significantly improved, the industry reached 25 yuan in sales of hundreds of billions of enterprises, of which there are more than 200 million yuan sales of more than $7.

Overall, the LED application industry has reached the scale of industrial development, the development of key technology products more mature, product quality and reliability on the whole has been significantly improved.

According to the "opinions" the development of semiconductor lighting industry, by 2015, the output value of the semiconductor lighting industry with an average annual growth rate of around 30%; product market share increased year by year, functional lighting can reach about 20%, more than 50% LCD backlight, landscape decoration and other products market share of more than 70% enterprises significantly enhance the capability of independent innovation; MOCVD, large equipment, key raw materials and more than 70% of the chip to achieve localization, the upstream chip scale production enterprises 3-5; industry concentration significantly increased, leading backbone enterprises with independent brands, large market influence about 10; semiconductor lighting standard system; to achieve annual saving 40 billion kwh, the equivalent of 40 million tons of carbon dioxide emissions.

According to the national policy orientation, development goals and LED industry profit distribution, we believe that the LED lighting industry, the main investment in the leading technology, has the advantages of scale, LED is located in the upstream industry chain enterprises. Because the LED industry profits concentrated in the upstream. The upper, middle and lower reaches of the LED industry chain are respectively used for epitaxial materials and chip processing, industrial devices and modules, display and lighting applications. Upstream industry epitaxial material and chip manufacturing, is a technology and capital intensive industries; midstream industrial devices and module packaging and downstream industry display and lighting applications, is a technology and labor-intensive industries. LED upstream and downstream sectors of the industry vary greatly. The upstream product has high technical difficulty, high difficulty, high investment, high risk characteristics, in some areas, rely heavily on the technical difficulty, high precision of process technology and equipment is extremely strong, and the application in the middle and lower reaches of low barriers to entry, the lack of core technology. As a result of technology and barriers to entry led to LED epitaxial chips and chips accounted for about 70% of the industry's profits, LED packaging accounted for about 10-20%, while LED applications probably accounted for 10-20%. China's LED industry started in the last century in 80s. Start from the downstream packaging, and gradually into the upstream extension