LED industry investment risks looming

LED (light-emitting diode) as the protagonist of environmental protection, as well as LED semiconductor lighting source, LED industry in recent years, rapid warming.

The recent stock market, LED plate Sanan optoelectronics, Elec-Tech A new force suddenly rises., have closed trading.

Analysts said that with the light efficiency of breakthrough in core technology, broaden the application field of LED, the domestic scale is rapidly expanding, the industry chain is also gradually opened, but funds flock to LED, upstream manufacturers substantial expansion sequelae began to emerge, to broaden the application to digest industry in the next few years or pile up in excess of requirement, investment of "the great leap forward" repeat the mistakes of polysilicon.

Competing in the construction of LED base in Hubei

In December 6th last year, Wuhan city economic development investment group, Yangtze Communications Group invested 800 million yuan to set up Shenzhen Changguang lighting company, construction in Huangpi will be the largest in Central China LED green lighting industry base, and in the application of LED trade logistics hub in North Hankou area lighting.

The person concerned, will be phased construction of market development, plans to start construction this year, the first phase of investment 200 million yuan, the construction of the automatic production line of 20, the annual output value is expected to reach $2 billion.

September 11th, LED street lighting and LED Industrial Park project settled in Xiangfan. Trend technology (China) Co., Ltd. signed an agreement with the city of Xiangfan, in Hubei (Xiangfan) Shenzhen Industrial Park invested 500 million yuan to build the LED Industrial Park, to achieve industrial output value of more than 1 billion yuan. At the same time, in Xiangfan Shenzhen Industrial Park on the two road construction LED street lighting demonstration project.

Previously, Hongkong home, a source of common Rhea Singapore invested $50 million in Laohekou production LED and other products.

At present, Wuhan East Lake high tech Zone in Binhu road surrounding the initial formation of the new light industry, gathered Foxconn, Optics Valley electronics, optoelectronics, di yuan Maoguang, HC semitek and many other LED R & D and production enterprises.

According to the new light industry in East Lake high tech Zone relevant planning, 4 years will strive to achieve scale, new light industry reached 5 billion yuan, a batch of competitive new light source enterprises, forming 2 to 3 output value of 1 billion yuan of new light source group, 5 to 8 the value of the application of new lighting products enterprises.

Broaden the industrial structure

It is expected that in the next 3-5 years, the main growth momentum of the LED market in the future will come from the LCD panel backlight, automotive lighting, general lighting applications market. Goldman Sachs securities research pointed out that the global LED market size from 2008 to 2010 CAGR of 18%. "Time is the value, the earlier put into production, the future development of the company more favorable". A company executives admitted to enter the LED, is the fancy industry huge market prospects and higher gross margin.

In December 14th, the registered capital of 100 million yuan trend technology (Xiangfan) Co., Ltd. which located in Xiangfan high tech zone.

Trend Technology Group Chairman Liu Xiong said, considering the application of huge market share, into the LED enterprise application is gradually increasing.

With the LED luminous efficiency breakthrough, product range has been expanded.

LED street lamp has the characteristics of low working voltage, low power consumption, high luminous efficiency, long life and so on. In particular, the acquisition of white light has broadened its research and application fields.

According to experts test, with high power LED street lamp to replace a medium-sized city 300 thousand ordinary street lamp, can save electricity 285 million kwh per year, save standard coal of 200 thousand tons, reduce carbon dioxide emissions of 100 thousand tons.

Xiangfan hi tech Zone, said, LED street lighting demonstration project has been started, the public can enjoy the health of the health of the lamp without radiation.

A mobile phone screen to LED device is about 10, but a 42 inch LCD TV is 1000 LED, Xiangcai securities Chen Gang, LED by virtue of its excellent performance, in addition to be applied in the field of lighting, but also continuously improve in the TV backlight field penetration.

Societe Generale Securities Liu Liang said, in 2010, the global LED backlight is expected to grow rapidly, is expected to demand 30 billion TV, notebook PC demand of 6 billion, the phone needs of 7 billion. This figure is 8 billion times more than last year, the application of the LCD panel on the increase of 4 times.

It is to see the prospects of the industry, the brightest funds have flocked to LED.

Very little control of autonomous core technology

Currently, there are more than 60 domestic LED epitaxial and chip companies, LED packaging companies, LED, nearly application class enterprises. However, the true realization of the upstream and downstream through, there are very few companies with independent core technology, the annual output value of billions of dollars of the company, only a few dozen. In the rapid expansion of the scale of the industry, the layout of the positive layout of foreign manufacturers, the domestic industry urgent need to shuffle.

LED industry chain, LED chip industry accounted for about 70% of the profits, LED packaging about 10%~20%, LED application 10%~20%. LED on the upper, middle and lower reaches of the gross profit margins are not directly to do chip and epitaxial film in line with industry trends, to open up the industry chain, to obtain market discourse, reduce costs. Analysis revealed.

It is noteworthy that PHILPS and CREE and other companies through equity, mergers and acquisitions, such as traditional lighting companies, and actively expand the domestic market, domestic LED companies will face greater competitive pressures.

Overcapacity promote industry reshuffle

2008, the domestic LED industry market reached $6 billion 800 million, an average annual growth of 20%~30%, LED industry from the beginning of the supply, in the second half of excess capacity. LED overall performance in 2008 is not ideal.

Expected this year, China's LED industry output value will exceed 150