LED investment project risk key in the market and technology positioning

2011, China's newly introduced MOCVD has been put into operation. Despite fierce competition in the market, the rapid decline in prices, but still want to get involved in the upstream LED chip industry is still a lot of companies, some multinational companies are also considering the chip technology and production capacity transferred to the domestic. However, the risk of LED upstream investment projects, the key is the market and technology positioning.

A few days ago to participate in the high tech LED forum, there are 20 listed companies and foreign brands to participate in the enterprise. Forum from the LED, in the middle and lower reaches of a full range of analysis, draw the following conclusions: upstream: LED market demand was significantly lower than expected.

2011, China's newly introduced MOCVD has been put into operation. Despite fierce competition in the market, the rapid decline in prices, but still want to get involved in the upstream LED chip industry is still a lot of companies, some multinational companies are also considering the chip technology and production capacity transferred to the domestic. However, the risk of LED upstream investment projects, the key is the market and technology positioning. At the same time, the current LED key equipment and localization of raw materials is still very low level, the price of foreign equipment is faster than domestic R & D and production equipment.

Some foreign equipment has been reduced by 50%, has been weighing on the domestic equipment market. In the middle: packaging companies have been in excess of 1700, mainly distributed in various Chinese, Taiwanese, Hong Kong and the US and other enterprises, and the number of enterprises continue to increase. At present, China has gathered nearly 8 of the world's LED packaging enterprises, become a veritable world packaging plant". At the same time, price competition has become increasingly fierce components, in 2011 the domestic market, the price of white light LED over the same period in 2010 fell by more than 25%.

Downstream: LED lighting the most intense competition, the market has more than 10000 enterprises. In addition to LED lighting production enterprises, the traditional lighting companies have also entered the field of LED lighting. There are a lot of cars, do color TV, do mechanical equipment to invest in LED lighting industry. The world's giants are also optimistic about the Chinese market, have been involved in LED lighting.

Domestic LED lighting market can be described as a "miserable" word. Currently, LED lighting standards, benchmarking systems are established, and the market price and quality of LED lighting products are very confusing. The competition of Chinese enterprises is not only the competition of domestic market, but also the competition of global market.

Chinese enterprises not only to face the impact of high technology in Europe and America as well as a variety of patent traps, but also to face the impact of low cost countries from Vietnam, India. So, LED lighting world war will be in the world, the middle and lower reaches of the full swing. If the LED, in the lower reaches of the cloth, dyeing, fashion, then the first is the integration of the chip market (cloth), followed by packaging enterprise integration (dyeing), and finally the application of market integration (fashion).

Who can be the last winner, only time will tell!