Shenzhen, the development of LED industry to the market

Recently, in the absence of any explanation and justification, the Shenzhen municipal government has abolished a planned industrial development. In mid March, the city of Shenzhen in the form of "government gazette" abolished the "on the issuance of Shenzhen LED industry development plan (2009-2015) Notice" (hereinafter referred to as the "planning").

This is the country's first LED industry planning, and now many cities to develop the relevant planning, many are based on this model. May 2nd, Gui Shirong, President of the Federation of Shenzhen LED industry, told this reporter.

Gui Shirong said, the Shenzhen Municipal Development and Reform Commission is "planning" in the proposed policy are the main reason for the abolition of the capital and industry, especially on the support policy, has been involved in other aspects of the policy, do not need to use the "planning".

There are Shenzhen LED makers think Shenzhen is now repeated billion yuan level LED business failures, the entire LED industry has actually appeared overcapacity, worried that the LED industry has become the second photovoltaic industry based, may be an important reason for the government of Shenzhen to abolish the "planning".

LED industry dilemma

Shenzhen LED industry began in the early 90s of last century, the rapid development of enterprises accounted for nearly half of the country.

In March 2009, in order to polish "LED Shenzhen" signs, Shenzhen municipal government promulgated the "planning", the Shenzhen built a national and even global important LED industry R & D and production base, the scale of the industry in 2015 amounted to more than 130 billion yuan.

However, the high price of the LED market is difficult to quickly spread. The main factor of the high price is the high cost of material in the production cost. Now a LED lamp, the cost of the chip is accounted for more than 50%, many LED chips are made of sapphire substrate, and some even more expensive silicon carbide. Due to the existence of these factors, leading to LED can not be effective in the short term residents of the daily lighting. "In April 19th," the global resources of solar energy and energy-saving products procurement fair "of a Shenzhen LED R & D and production company general manager Fu Hui told reporters in Hongkong, from the industrial structure, due to the requirements of upstream products, high barriers in LED, China's enterprises is difficult to enter the upstream, but mostly concentrated in the downstream industries.

Irrational industrial structure of the status quo, as early as the introduction of the "planning" can also be pointed out.

"Planning" pointed out that, from the perspective of industrial structure, although the Shenzhen LED enterprise covers all areas of the middle and lower reaches, but the difference between the proportion of. According to incomplete statistics, the city of Shenzhen LED enterprises, in the downstream of the application of enterprise products, packaging enterprises, supporting enterprises accounted for about 33% of the total, epitaxial chips and other upstream enterprises accounted for only about 1%. In addition, from the point of view of industrial structure, packaging, application and supporting products accounted for about 30% of the total sales of the total, 60% and 9%, while in the upper reaches of the epitaxial and chip share is less than 1%.

Moreover, in the LED industry chain in all aspects of the lack of a considerable size and strength of the leading enterprises, resulting in the overall competitiveness of the LED industry is weak, the professional division of labor brought about by the cluster effect has not been reflected.

"The high end of the industrial chain is relatively weak, the majority of LED enterprises are mainly production and processing, R & D capability is far from the international level, etc.. Shenzhen, a LED producer told this reporter that the number of constraints on these issues in Shenzhen LED industry in the past few years has not been as planned as the rapid development.

However, as a strategic emerging industries, LED in government policy support, from top to bottom by the government at all levels of care.

Newspaper reporter finishing found that in Shenzhen, the abolition of the planning, in addition to the state and the Guangdong provincial level are also supportive policies on the LED industry.

Recently, the national development and Reform Commission and other six ministries jointly issued the "semiconductor lighting energy saving industry planning", a clear description of the "12th Five-Year" during the development goals of China's LED industry, the main tasks and support measures.

Guangdong provincial government put the LED into one of the province's three major strategic emerging industries, attaches great importance to the development of LED industry, and actively introduce relevant policies and measures.

In fact, as early as April 2011, the Guangdong provincial science and Technology Department of Guangdong Province issued "LED industry development plan", "12th Five-Year" to May 2012, the Guangdong Provincial People's government and the "issued by Guangdong province to promote the use of LED lighting products implementation plan of the notice", followed by the preparation of the introduction of "Guangdong province LED industry technology roadmap", continuous release at the same time with preferential policies, funds and subsidies to support, in boosting LED industry rapidly expand.

Shenzhen semiconductor industry association secretary general Peng participated in the drafting and formulation of the "planning", according to his analysis, although the government has not announced the abolition of the planning of explanation and justification, but there may be some as mentioned in the planning policy, especially the capital and industry support, has been involved in other aspects of the policy in.

The development of the industry to the market

Shenzhen LED industry was synonymous with China LED, the abolition of the plan, or to make a lot of people in the industry feel that the industry has been abandoned by the government and caused a lot of conjecture.

It is the government support policies, so that the rapid expansion of the LED market, to a certain extent, has formed a overcapacity. The above Shenzhen LED manufacturers, Shenzhen is now a billion yuan level LED business failures, based on the fear that the LED industry has become the second photovoltaic industry, perhaps the government of Shenzhen to abolish the "planning" an important reason.