SWOT analysis of China's LED lighting industry development

At present, lighting accounts for about 20% of the world's total energy consumption. Statistics show that only a LED street lamp energy saving, an annual savings of about Three Gorges Dam will be able to produce electricity. It is because of the advantages of energy saving and environmental protection, LED lighting has in recent years, the global output growth rate remained above 20%, Chinese has also launched the green lighting engineering, semiconductor lighting project, "ten city lights" plan to promote the development of the industry, in 2008 the total output value of China's semiconductor lighting of nearly 70 billion yuan. Moreover, the various sectors of the capital actively involved in investment in the LED industry, the rapid growth of investment scale, only the first half of 2009, all over the country have launched the LED project total investment budget of more than 20 billion yuan.

Although the Chinese LED industry investment and capacity expansion continues to accelerate, LED lighting production enterprises more than 3000, but 70% of them part of the integrated application focused on the downstream, upstream the lack of core technology, but also because of generally small scale enterprises and lack of standards, product quality is uneven. Compared with multinational enterprises, there are still many gaps in China's LED enterprises. How to effectively enhance the core competitiveness of Chinese LED enterprises, and actively participate in the globalization of competition, is an urgent need to consider the issue.

Advantage analysis

(a) low market entry threshold

1, the technology has a good foundation for research and abroad is gradually narrowing the gap

Although the domestic LED industry is relatively weak, the technological level is relatively low, but some domestic enterprises by hiring overseas technical personnel in technology continue to make breakthroughs, many enterprises have independent intellectual property rights, technical level of technical level of domestic high-quality enterprises with Taiwan manufacturers are similar, and the overall gap between international companies are also shrinking.

2, less capital investment

LED initial investment of one hundred million yuan can build factories, total assets of LIAN photoelectric, Silan and other industry well-known listed companies is 10 yuan, the domestic enterprises to enter the threshold is low, easy to implement rolling development, and the integrated circuit manufacturing and LCD panel manufacturing to hundreds of billions of billions of yuan investment is "not worth mentioning, China easy access to the enterprise clusters.

(two) some of the advantages of domestic enterprises have core patent technology

Jinqiu smartfortune consulting analysis, compared with microelectronics, China's LED field with smaller gap abroad. China's independent development of the first light-emitting diode (LED), the world's first light-emitting diode than just a few months later. Overall, the current level of technology in China's semiconductor light-emitting diode industry, with developed countries only about 3 years. Through the "863" plan, the plan of science and technology support, China has initially formed a production, from wafer and chip fabrication, integrated device packaging applications relatively complete industrial chain, now the country engaged in the semiconductor light-emitting diode devices and lighting system of production scale of more than more than and 400 enterprises, the product packaging has a large share of in the international market.

(three) the middle and lower reaches of LED has the advantage of labor cost

The semiconductor lighting industry, especially in the industry chain downstream chip package and lighting systems industry is a technology intensive industry, it is a labor-intensive industry, the difficulty and risks are much lower than the microelectronics industry. The development of semiconductor lighting industry, can give full play to the advantages of human resources in China, to promote the relevant industries, and increase exports, employment. After the technology is mature, LED downstream packaging and device production are labor-intensive, China has obvious advantages in labor costs.

(four) the initial formation of the industrial cluster effect

China's LED industry has developed rapidly in recent years. LED products can be widely used in landscape lighting, safety lighting, special lighting and general lighting and other fields, the market potential of more than one hundred billion yuan. Jinqiu smartfortune consulting analysis, China's semiconductor lighting industry is entering the independent innovation, to achieve an important period of development by leaps and bounds. In 2006 the domestic chip market share of 44%, has been successfully developed including LED lights, lamp and other four major categories of more than and 140 new products, 2001-2006, semiconductor lighting market sales of an average annual growth rate of 48%. in China has become the world's largest producer and exporter of electrical lighting. 2006, China's lighting industry output value of about 160 billion yuan, exports $10 billion, accounting for the global market 18%. a new battle to seize the commanding heights of semiconductor lighting industry, has started in the world. 2006, the global semiconductor lighting market sales of more than $7 billion, with an average annual growth rate of over 20%, is expected in the next 5-10 years will form a potential market of $50 billion -1000.

In view of the prospects for the development of semiconductor lighting industry is encouraging, in Japan twenty-first Century "light plan" and the "next generation lighting plan", the "Rainbow plan", South Korea "GaN semiconductor plan" the government plans to have started.

China in June 2003 also set up a national semiconductor lighting project coordination leading group to start the national semiconductor lighting project.

In the face of the huge temptation of the semiconductor lighting market, the world's three largest traditional lighting industry giant PHILPS, general electric, OSRAM and semiconductor companies, the establishment of semiconductor lighting companies. At present, the semiconductor lighting luminous efficiency higher than incandescent lamps are growing at a faster pace to expand its scope of application of a variety of lighting, large size LCD TV backlight, automobile, business and industry has gradually become the main application field of LED. Expected in 2010, LED will exceed