LED lighting: investment in the future will have a high vigilance industry reshuffle

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 profits, caused by disorderly competition, industry reshuffle or in this year.

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

"Good day for domestic LED enterprises come 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.