LED takeoff trend, opportunities and challenges coexist

According to the U.S. market research firm CIR predicts that the global LED market will grow from $3 billion 200 million in 2004 to $5 billion 600 million in 2008. According to Guzhen Lighting reported that in 2006 China's LED output value of 14 billion yuan, the market size is expected in 2008 will reach $54 billion, by the size of the domestic LED industry in 2010 will be more than 100 billion yuan. LED in addition to the traditional spotlights, advertising applications, outdoor lighting, holiday products have been vigorously promoted, the future is the largest application of ordinary lighting. Many countries are stepping up legislation to encourage the use of energy-saving light source. European Union, Australia and the United States will be banned from 2009, 2010 and 2020 incandescent bulbs. Major international lighting manufacturers and third party advisory bodies have predicted that by 2010 LED will be widely used in indoor lighting. To LED accounted for 10% of the general lighting market, when the potential size of the LED general lighting market will reach $25 billion. Core technology needs to improve the lack of core technology, China's LED industry and exports are facing a huge problem. In the LED industry chain, including the production of LED epitaxial wafer, LED chip production, LED chip packaging and LED products, such as the application of the four links, including the epitaxial wafer of the highest technical content, the chip. For a long time, China is a large exporter of LED packaging, enterprises are mainly concentrated in the lower reaches of the technical content is not high packaging areas, relying on absolute price advantage in the export market position. The upper and middle reaches of the field only in recent years, the gradual development of domestic LED chip supply capacity is far from being able to meet the needs of many LED manufacturers are still a large number of imports. This greatly restricts the development of China's LED exports. Engaged in domestic chip R & D and production enterprises only a few, most of the government support enterprises, early famous Xiamen, Dalian Sanan group of Lu Mei group. And the larger the amount of LED exports in Zhongshan, only silver rain and other large enterprises involved in chip manufacturing. In the development of LED chip industry, high brightness LED chip is the focus of investment in enterprise production. Professionals predict that in 2008 the production of high brightness chips will exceed the average brightness chip, LED chip industry into the era of high brightness. However, according to the general manager of Xiamen Sanan group Zhongshan city Baoan Lighting Co., Ltd. Wang Bo, at present, China for high brightness chip R & D and production is still very difficult, mainly is the cost of upgrading the pressure. At the same time to improve product technology, quality, equipment, manpower, technology introduction, the input of integrated resources to the enterprise caused great distress. At present, the state support, foreign investment driven, the industry and the harmonious development of the LED chip industry to promote the development of the driving force. International resistance can not be ignored as the LED market continues to expand, the major powers want to share the cake in the export market, international trade friction will be inevitable. In recent years, due to the potential market for LED, a number of foreign companies have entered China's factories, and from the early to the packaging plant to the higher technical content of the chip. The next few years, the Chinese market will become Japan and Taiwan after another LED industrial base. However, the frequent set of foreign technical barriers to become a major obstacle to exports. It is reported that, in view of the LED chip set, exports, Japan Nichia CREE patent, the China LED chip can not be exported to Japan; American Standard UL and the recent publication, also caused great pressure on the market Chinese LED export enterprises. From the development trend of LED exports, foreign technical barriers will be more and more. Therefore, the most important thing is to practice the Chinese enterprises to protect the quality of export products. On the other hand, in recent years, the United States GE, Holland PHILPS, OSRAM of Germany of the three major world lighting giant, have to cooperate with the semiconductor company set up semiconductor lighting company, accelerate industrial expansion, enhance competitive advantage, find new economic growth point, the Chinese export enterprises has a great influence. Although this kind of Export Group exports of high-tech content, high value-added products, but their application package, LED will also occupy a certain share in the overseas market, which is the usual means of cooperation with the local export market strength, have absolute advantages.

According to industry sources, in India, PHILPS, OSRAM had signed a LED export agreement with the local government, limiting the use of a certain class of LED products in India market. This directly led to the loss of China's LED export heavy losses, some companies have to give up overseas markets. Professionals have pointed out that when this happens, most of the enterprises through avoiding the market, other markets to solve the way; and some enterprises take precautions, through independent innovation, development is different from competitive products to overseas markets.

Source: LEDinside