LED investment is now overheated industry reshuffle inevitable signs

In January 12th, three optical [0.00 0.00%] bulletin 12 billion yuan investment in Wuhu LED industry base.

January 16th, with a total investment of 24 billion 500 million yuan TCL Huaxing photoelectric LCD panel project officially started the 8.5 generation.

In February 1st, the Wuhu municipal government and the [0.00 0.00%] photoelectric Co., Ltd. signed Elec-Tech, a total investment of 6 billion yuan, the construction of LED photovoltaic industry base.

Taiwan Chi Mei Electronics, its total investment in the South China Sea in 2010 will be more than 2 billion U.S. dollars, with an annual output of more than 15 million LCD TV sets, the total output value of over 100 billion yuan.

LED industry investment has emerged signs of overheating, industry reshuffle or in this year.

In February 4th, School of materials science and engineering South China University of Technology vice president Peng Junbiao told the "daily economic news" reporter said, in recent years, LED technology is widely used in the lighting field, LED industry is in rapid Chinese to take the heat, but many enterprises lack competitiveness in technology, the expected profit is not high, a large amount of capital into the market will inevitably result in diluted profit that caused by disorderly competition.

Many industry experts also said that the LED industry has been overheating signs, the need to guard against overcapacity problem; in addition to the strong entry of foreign giants, domestic manufacturers should accelerate technological development and patent protection in the new round of competition.

Possible overdraft capacity in the next 3~5 years

In February 2nd, the first national new industrialization demonstration base of the award, the photovoltaic industry base to occupy 3 seats, LED industry has become a key industry for national development. At the same time, the initial investment of 100 million yuan LED can build a low threshold to stimulate the scrambling around the launch of the LED project.

Public information, only in the first half of 2009, the country has launched a total investment budget LED project has more than 20 billion yuan.

2009, the domestic LED companies have announced the expansion of financing production.

In addition to capital expansion, the listing and financing has become an urgent need for the development of LED enterprises. According to the national Torch Plan key high-tech enterprises in Guangdong star Optoelectronics (hereinafter referred to as the National Star Optoelectronics) had previously revealed to the media, the company has submitted the application of small plates listed, waiting for the Commission audit.

The development of LED funds thirsty also attracted private investment. According to statistics, in 2009, private capital actively involved in the LED industry, the rapid growth of investment, investment in the industry chain. In recent years, venture capital investment in domestic enterprises more than 1 billion 500 million yuan.

According to expert analysis, from the current construction and construction projects planned statistics, LED production capacity of at least three to five years overdraft capacity and market. After the completion of a large number of LED projects will result in China's LED industry is not concentrated, overcapacity, disorderly competition in the market, lack of talent and other issues.

Domestic enterprises or face the risk of being purchased

"The good days of domestic LED companies are coming to an end! "Foreign giants began to seize China from last year, CREE announced that Huizhou voted to build a chip factory, Nanhai chip factory, Jingyuan Xuming formed the formation of Dalian chip factory.

According to statistics, at present, China's LED epitaxial and chip companies 62, LED packaging companies more than 1 thousand, LED application class enterprises close to 2000. However, there are some problems such as low technology content, low innovation ability and lack of core competence in LED enterprises. With the international giants to enter the Chinese market, domestic enterprises will face the risk of being acquired or directly eliminated.

The chairman of the Guangdong province LED Industry Association Li Xuliang said, LED in our country at present there is no uniform industry standard to regulate and guide, the resulting market competition is difficult to carry out orderly, product homogeneity is serious, it is difficult to effectively enhance quality, has become a major obstacle to the development of domestic LED industry.

Domestic LED manufacturers everywhere, but as the LED chip growth tools MOCVD equipment technology, the basic AIXTRON two companies in Germany and the United States VEECO monopoly, its international market share increased by more than 92%. LED vendors looting will enable the two companies may raise prices, if the LED capacity LED manufacturers increasingly saturated, gross margin will decline, the domestic small and medium-sized manufacturers LED days will be difficult to continue.

Experts: do high-end only promising

Guangdong Provincial Intellectual Property Bureau and the Department of information industry of Guangdong Province recently jointly issued "patent situation analysis report" and "flat-panel display industry LED industry patent analysis report". Data show that the LED application of the relevant patent countries, Japan accounted for 27.9% of the world, China accounted for only about 9.34%.

Li Xuliang has used six little to describe China's LED industry short board: R & D investment less, fewer researchers, less intellectual property, less construction works, less after-sales service, less market experience.

In recent years, the number of patent China LED rising very quickly, the number of patents in foreign holders of LED also rose quickly, Chinese LED holder LED patent technology which is extensive, mainly concentrated in the downstream industry LED package and LED, lower profits. Epitaxial growth and a small number of chip manufacturing patents, most of them are foreign masters, foreign companies will continue to increase the number of patent litigation against Chinese enterprises, the development of domestic LED industry is bound to be patented.

Wang Yaohao, chairman of the national star, said, Chinese products to the LED industry chain to rise in the high-end, in order to enable enterprises to remain invincible. "

Peng Junbiao also believes that the country should correctly guide the development of the industry, to avoid low-level redundant construction, the formation of differentiated features. To do high-end technology, high-end products, this is very important. "