LED investment boom in China

Last year in the LED industry Elec-Tech chairman Wang Donglei believes that "if the appliances are the Red Sea market, then LED or blue ocean. "Why LED industry investment boom? We believe that the government's push, the initial characteristics of the development of the industry, as well as the liquidity of the capital market is the main support for several major reasons. LED enterprises should also be alert to the possible risks in the rapid expansion at the same time.

International and domestic situation

, a huge market potential world LED

1.LED light source has the advantages of energy saving, environmental protection, digital design and other advantages, can be widely used in backlight, display advertising, automotive lighting and traffic information identification, general lighting and other fields

2 with LED instead of traditional light sources, the global LED market will enter a rapid growth stage

According to DisplaySearch estimates, in 2010 LED LCD TV penetration will reach 19%, up to 36 million units in 2011 reached a total of 76 million units, accounting for up to $39% in 2012 reached 119 million units, accounting for up to 56%.

2007-2012 LED according to application shipments forecast

Two, 2009 years enterprise investment enthusiasm is rising 1.2009 years, China semiconductor lighting industrial sales output value reached 1000 billion yuan, an increase of more than 30%, the China has become one of the world's fastest LED industrial area

According to the development and Reform Commission and other six ministries jointly issued the "semiconductor lighting industry development views," the document, by 2015, the annual growth rate of semiconductor lighting industry output value will be around 30%.

2 Chinese LED complete industrial chain, wide space layout, a large number of enterprises, but with strong competitiveness is the main part of the package is downstream

Chinese LED industry covering from upstream epitaxial material, chip, package (Epitaxy), more than 85% of the application of the whole chain of LED enterprises in the Pearl River Delta, Yangtze River Delta, the northern region (Beijing, Tianjin, Dalian, Jiangxi and Fujian) statistics, at present China LED epitaxy and chip company 62, LED package more than 1 thousand enterprises, LED class enterprise is close to 2000

3.2009 years, the domestic LED packaging output value of about $20 billion 400 million, becoming the world's largest packaging area, but the upstream chip production output value of only $2 billion 300 million, and mainly in the low-end low-power products, but the compound annual growth rate of 30%

4.09 years, Chinese LED industry investment accelerated, many enterprises began to carry out large-scale expansion

In 2009, the largest domestic LED enterprises to invest 900 million yuan in Sanan optoelectronics, LED production line construction in Tianjin; in January 2010 announced that it will invest 12 billion yuan in Anhui Wuhu LED production base construction, Elec-Tech Silan and other enterprises are also significantly expand the LED investment in November 2009, CREE (Cree) in Guangdong Huizhou construction LED chip production base, Konka SKYWORTH of LED backlight with household electrical appliance enterprises demand also has invested in the construction of LED packaging factory

Many factors in the formation of LED hot investment

The development of a China, central government and local governments at all levels shall take various measures to promote the LED industry

1 the central government has laid the foundation for the development of the industry through the direction of industrial development, demand subsidies, R & D support, standards and other means

In June 2003, the State Ministry of science and technology combined with a number of departments, industry and local government, the establishment of the national semiconductor lighting project coordination leading group in 2006 the "national long-term science and technology development plan (2006-2020)", "information industry" 11th Five-Year "planning", April 2009 "electronic information industry restructuring and revitalization plan" will be the LED industry as the focus of development, a number of departments related to technology research and development of LED industry to give special subsidies in December 2008, the Ministry of science and technology "ten city lights" plan, ten city, each city to promote the function of LED lighting lamp above 10 thousand, according to the Ministry of science and technology, LED lighting lighting increased than the traditional 30%-50% investment subsidies 2009 years 10 month, the national development and Reform Commission and other six ministries issued the "opinions" the development of semiconductor lighting industry, make the development of the LED industry Chinese Department The Department, clearly put forward to 2015 years domestic chip reached more than 70% related terms, the semiconductor lighting device noun detection methods of LED industry standard in 2010 began the formal implementation of

2 local governments attract investment demand through subsidies and investment, R & D subsidies to promote local industrial transformation and upgrading

In Anhui Wuhu Sanan optoelectronics LED project, a total investment of 6 billion yuan, the Wuhu municipal government will be 100 sets of production equipment to purchase a total of about 900 million yuan subsidy. Moreover, the Wuhu Municipal Committee of housing and urban construction will also purchase high-power LED street lamps from the company, a total of 600 million yuan in 2010, in 2011 and in 2012 each year to purchase $200 million.

Two important reasons, LED industry in the current industry is characteristic of the industry investment hot

1 overall, the industry is still in short supply in the current stage, enterprises can obtain higher profits, so the expansion of investment is the natural choice

An optoelectronic Tianjin project is expected after tax profit rate is as high as 20%.

2 Chinese manufacturing enterprises mainly engaged in LED, relatively speaking into the financial and technical barriers in the industry are not Gao

It is estimated that the minimum amount of investment into the LED only 100 million yuan.

3 at present, the industry is in the early stages of development