LED investment surging

If the small home appliance is the Red Sea market, then led (light-emitting diode) or blue ocean. "Last year in the LED industry of BDO Runda chairman Wang Donglei think so. LED industry investment is surging.

2009, China's semiconductor lighting industry output value reached 100 billion yuan, an increase of more than 30%, making China one of the fastest growing areas of the global LED industry. According to the development and Reform Commission and other six ministries jointly issued the "semiconductor lighting industry development advice," by 2015, the annual growth rate of semiconductor lighting industry output value will be around 30%. From the enterprise, in 2009 the largest domestic LED enterprises to invest 900 million yuan in three optical LED production line construction in Tianjin, in January this year announced that it will invest 12 billion yuan in Anhui Wuhu LED production base construction. Elec-Tech, Silan and other enterprises have significantly expanded the investment LED. Foreign companies have also come to a share, last November, the United States decided to build a CREE LED chip production base in Guangdong, Huizhou.

LED investment boom is formed, and the central and local government support inseparable. December 2008, the Ministry of science and Technology issued ten city million program, in each of the 10 cities to promote LED function lighting more than 10 thousand, according to the Ministry of science and technology LED lighting than traditional lighting to increase the amount of investment subsidies 30%-50%. In October last year, the introduction of the semiconductor lighting industry development opinions clearly stated that by the year of 2015 China LED chip localization to reach more than 70%. Local government subsidies and other policies to attract investment to promote the transformation and upgrading of local industries. As 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.

LED industry itself has a huge market potential more opportunities. Because the 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, the traditional source of replacement is accelerating.

From the perspective of the industrial chain, China's LED industry covers the upstream materials, epitaxy, chip, packaging to the application, the chain is complete, wide spatial layout. In the capital market, LED has been sought after obviously -- from the beginning of 2009 15 months to 3 at the end of 2010, Elec-Tech share price rose from 2.81 yuan to 20.29 yuan, Silan from 3.35 yuan to 14.85 yuan, while the Shanghai Composite Index rose from 1820 points to 3109 points.

Overall, the industry is still in short supply stage, the enterprise can obtain higher profits, so expanding investment is also a natural choice. "Samsung Economic Research Institute Zhang Shenwei said that the investment acceleration also led to the upstream of LED production of raw material and equipment demand, but because of the industrial chain upstream region of the technical limitations, Chinese enterprises may need to strengthen cooperation with foreign enterprises.