LED industry chain upstream enterprise development opportunities

Green lighting meets the development of low carbon economy. Lighting is a process of converting electrical energy into light energy. In this conversion process, will be accompanied by heat and other losses, while the production of carbon dioxide and some emissions of atmospheric pollutants. Green lighting will improve the efficiency of lighting appliances and systems, reduce emissions of air pollutants and greenhouse gases.

The development of green lighting is an effective way to promote the wide application of LED lighting technology. LED is the fourth revolution in the way of human lighting after incandescent lamp, fluorescent lamp and energy saving lamp. LED has the advantages of energy saving, environmental protection, low power consumption, long life, rich color, vibration resistance, strong controllability and so on.

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. LED upstream and downstream sectors of the industry vary greatly. Upstream product technology is extremely difficult, with a high degree of difficulty, high investment, high risk characteristics, and the middle and lower barriers to entry is very low, the lack of core technology. LED epitaxial wafers and chips accounted for about 70% of the industry's profits, LED packaging accounted for about 10-20%, LED applications accounted for about 10-20%.

Global LED industry development pattern. The United States and Japanese companies in the technology, equipment has a monopoly advantage, the advantages of European companies in the field of applied technology is strong, so mainly engaged in the production of high value-added products. In recent years, the LED industry in mainland China and Taiwan has been rising rapidly, and its packaging output occupies the first place in the world, which is the second largest in the world.

The development of LED industry in china. I extend the foreign chip, chip industry and foreign gap, packaging industry output in the world, the industry reached the scale of the development of the industry. There are some problems such as the lack of patent and core technology, the low level of the industry as a whole, the standard and testing system has not been established, and the low level of blind investment is serious. China's LED industry due to the short development time, the market demand. Therefore, the domestic LED industry, especially the upstream chip, epitaxial film companies will have great development opportunities.