Most of the LED enterprises in China focus on the middle and lower reaches of the industrial chain

"In the whole LED industry chain, and other upstream epitaxial chip area accounted for 70% of the profits. "In July 7th, chief executive officer of, director of LED Industry Research Center, told reporters.

Unfortunately, this 70% of the profits and the vast majority of Chinese enterprises LED missed. The status quo of China's LED industry is still the most concentrated in the downstream enterprises of packaging and application of the industry chain, foreign LED giants with upstream core technology, grab most of the profits, the domestic enterprises can only compete for the rest of the cake.

Large number of countries and technology

In the industrial scale, China has undoubtedly become a big country LED. According to statistics, in 2010 China's LED output value will exceed 150 billion yuan, this data is in 2008, the number of times, and to continue to grow at a rate of 30% per year. According to the reporter, only a province of Guangdong, is expected to reach the size of the industry in 2012 will reach 120 billion yuan in 2015 to break through the $300 billion. Our LED full color, LED traffic lights, solar LED lights and LEDELlspacing= "0" cELlpadding= "0" >

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Although our LED products have the advantage in quantity, but the high-end technology still heteronomy. The current global patent core technology lies in Japan Nichia (Nichia) and Corey (Cree), OSRAM (Osram) and other giants, at the same time, the wafer and chip area, the United States and Japan companies in monopoly. In this fierce competition, China's thousands of LED companies, only dozens of companies involved in the extension and chips, can be bigger is a handful.

According to LED industry research firm LEDinside statistics show that as of August 2009, China's existing LED chip manufacturers only 62, of which a large number of mass production enterprises are not many. Enterprises are mainly concentrated in the field of low power, high power field due to the many technical, technical aspects of the problem, few companies involved. Zhang Xiaofei told reporters that due to the upper reaches of large investment, technology, talent and patent requirements are relatively high, currently only a small number of enterprises with this capability.

In the entire LED industry chain, epitaxy and chip accounted for 70% of the profits, which means only downstream of the profit of more than 90% of LED companies in China to compete in the market in the profits of these 30%.

Patent and technology dilemma

Upstream does not lose money on the good, Professor Wen Shangsheng, director of semiconductor lighting technology research center, South China University of Technology, told reporters that China's LED upstream enterprises, especially epitaxial enterprises, can be quite good preservation.

Wen Sheng has revealed that a company invested heavily in the year to enter the field of LED epitaxy, but the final result was forced to stop production equipment donated to a university in Guangzhou. Because taking into account the factors such as immature technology, he also advised business owners, do not easily get involved in the upstream areas such as LED epitaxy.

The upper reaches of the domestic enterprises can only guarantee and rely on luck, behind the shadow of the lack of patents and technology.

According to Wen Shangsheng, China has not yet mastered the key technology of LED upstream areas, product quality and performance than the foreign products have a certain gap in foreign enterprises under strong attack, local enterprises living space becomes very small, "but the quality of products, no one to. "

In terms of patents, Crystal Electronics (Guangzhou) Co., Ltd. deputy general manager Lin Xiaoning also expressed their concerns. He told reporters that the current foreign LED companies to master more patents, foreign markets are therefore in a state of monopoly, it is difficult to go abroad. Even in many domestic bidding, foreign chips are more favored.

In the multiple effects of these factors, the domestic LED enterprises only focus on technology and products are relatively mature LED lamps and other downstream areas, eating leftovers, and more profitable upstream areas, only surrendering foreign enterprises.