LED industry what is the reason why prematurely senile,?

China there is a bad phenomenon, which the industry has to make money signs, will become the object of entrepreneurs flocking capital intensive investment, the final result is the industry overcapacity, some enterprises have been eliminated in the industry reshuffle. It is understood that in Shenzhen in the enterprise LED technology related to about 2000, but most concentrated in the technical field of packaging and application, semiconductor materials, phosphors are vital to the production of the production enterprises to zero. In other words, whether it is technology, technology, equipment, or key raw materials, etc., need to be imported from abroad. At the same time, although the intensity of the Shenzhen LED enterprises, but the lack of effective quality control, production of LED product quality is uneven, and this phenomenon is also emerging in Foshan, Zhuhai and other places. There is no core technology, do not have the production base, just want to seize the country's policy Dongfeng ruthless fishing, the results can be imagined. In fact, the LED industry today's tragedy foreshadowed. Many LED companies to enter the market, just to see the future prospects, the lack of core competitiveness as a shield, a large number of products in the low-end market. Long term dependence on exports, but also a major drawback to the survival of these enterprises. The European debt crisis swept the foreign trade market, will inevitably lead to reduced orders, increased competition. The company's production capacity is greatly reduced, which inevitably leads to difficulties in the flow of funds. Due to the LED field, "serial" triangle debt "debt" phenomenon, is often a company boss run away, causing capital chain crisis Domino effect - the whole industry will collapse, industry trend strikes. In addition to the lack of core competitiveness, is willing to Jing Guang electronics, the original manager revealed that the company is largely due to the collapse of small and medium enterprises loans difficult. In recent years, the LED industry price war, has made the rapid decline in corporate profits, cash flow difficulties has become a nightmare for SMEs to survive. Shenzhen junduoli enterprise LED falls in the vision before, the fundamental reason lies in the bankruptcy of the company expansion too fast pace, and ultimately lead to funding strand breaks. But I believe that, in the world has been pursuing innovation as the first productive forces, want to make the enterprise unbeaten forest, technology is still the core competitiveness. LED enterprise must learn a lesson and avoid duplication of investment in the low-end products, to achieve the transformation and upgrading of enterprises, in order to continue to maintain the LED of this emerging industry, so they can not blindly invest in another round of DVD like prematurely senile, not completed a "sunset industry".