Government procurement induced investment impulse LED industry or repeat the mistakes of polysilicon

"Crystal branch may be the next mengniu. "Crystal Electronics (Guangzhou) Co., Ltd. deputy general manager Lin Xiaoning said proudly. Previously, Ding Hui investment Mengniu Dairy was a great success, and now also invested in the investment department.

Recently, Crystal Electronics (Hongkong advanced optoelectronic technology Co. Ltd. a subsidiary), announced to spend 1 billion yuan in Guangzhou Nansha to build LED chip base in May 10th, the new base is located in Guangzhou, Nansha to see the site has not yet started, drizzle in the wasteland overgrown with weeds. But Lin Xiaoning told reporters, the new base will be completed by the end of the year".

And at this time, known as China's largest LED industry base is also stepping up construction in Hubei, Yichang. This is based on the Hubei Electronics Co., Ltd. to build a base called to let LED energy-saving lighting to illuminate the country". In early April, LED chip manufacturer Sanan optoelectronics production base is located in Wuhu has started, the project total investment is up to 12 billion yuan.

"Investing in the LED industry is investing in China's future. Shenzhen Lehman photoelectric Polytron Technologies Inc chairman in 2010 LED Industry Summit Forum, said so.

However, behind the bright hidden worries. Too much government intervention, the excessive influx of capital, no standard, lack of independent intellectual property rights, a series of problems such as low level of imitation, the industry is experiencing a shift like a mighty wave crashing on a sandy shore.

The government regional competition

From central China to East China, from North China to Southern China, local governments are actively supporting the development of the local LED industry, so that the situation of letting a hundred flowers bloom, let the enterprise full of vision also feel the pressure.

In the Pearl River Delta as an example, as early as in November 9, 2009, Guangdong Huizhou will be one of the world's four largest chip maker LED Cree (keshui) introduced, Huizhou also became the first Cree LED chip production base outside of North America; and as a manufacturing center in Dongguan, also announced in November 2009 "to promote the development of LED industry and application and demonstration of the implementation of the work programme" in Dongguan, Dongguan currently has more than and 200 LED enterprises, according to industry estimates, by 2015 the output value will reach 15 billion yuan; the Zhongshan Ancient Town is based on the original lighting industry, the main LED lighting applications, to seize the LED terminal industry chain, to build international lights; in order to promote the development of LED industry, Shenzhen also introduced the development planning of Shenzhen LED industry "(2009~2015)" "Shenzhen city to promote energy-efficient LED lighting products demonstration engineering Implementation of the program "and other related policies, and actively support enterprises bigger and stronger, while Shenzhen Konka as early as 2008, including plans to build LED display, LED lighting, LCD TV LED backlight and other industries, so as to form a complete industrial chain of LED; Guangzhou city is no exception, formulated the" Guangzhou city street lamp energy saving equipment installation management regulations "the 3 supporting documents, in order to develop LED street access standards, but also introduced a number of enterprises including Hongkong ceramics, settled.

Modern urban landscape construction, new media, advertising, digital city, will further expand the extension of LED applications. With the acceleration of urbanization and the improvement of the level of the whole society, LED, as a sunrise industry with low carbon and environmental protection, has obtained great development space. But many enterprises rushing headlong into the situation, but also to the industry competition, it is difficult to achieve the benign development.

At present, the industry reshuffle inevitable. Lin Xiaoning said, I think LED companies, especially in the upper reaches of the LED chip business, the last remaining may be only a few. "

Massive government procurement of false prosperity

Now LED Street policy measures are difficult to implement. China Electronic Technology Group Corporation thirteenth Institute researcher Professor Zhang Wansheng said that now the LED street lights have a lot of fudge ingredients.

Since 2009, the implementation of the "ten city lights" project of the Ministry of science and technology, to carry out the pilot work of semiconductor lighting application engineering in Tianjin, Shijiazhuang, Dalian, Harbin, Shanghai, Hangzhou, Xiamen, Fuzhou, Wuhan, Shenzhen, Chengdu, Chongqing, Xi'an 21 city, the target is 6 million lamp out of the city in 21 to replace by the end of 2011, in order to boost LED industry 15 billion yuan of domestic business.

But in front of huge government procurement, LED enterprise "not to the market, but to find the mayor", a huge market demand for government procurement driven so that enterprises have tasted the sweetness, and thus stimulate the further expansion of production capacity, the accumulation of foam.

It is reported that by the end of April, Shandong city's Weifang city has completed the replacement of more than 57600 LED street lamp, street lamp accounted for 74% of the total. But Chen Yansheng, chairman of the China Lighting Electrical Appliance Association, said in an interview: Weifang street lamp replacement is a typical government led behavior, the specific effect of how the experts need to evaluate. I don't think this is the right thing to do. "

While encouraging the development of LED enterprises, the government has created business opportunities for enterprises through direct procurement, but this model is not a complete market behavior. At the same time, a large number of government procurement is easy to form a false prosperity of the LED industry, causing investment impulse, can not make the enterprise rational market. In addition, the government led model will cause excessive reliance on government LED enterprises, in the absence of obvious competitive advantage, these companies will become increasingly difficult in the market.

Chen Yansheng believes that China is now in the process of LED technology is still in the process of development, the technology itself is not very mature, so large