The prospect of LED triggered new opportunities A new force suddenly rises. casts a thousand beams.

From LED to LED, LED lamp name card camera, behind the application range is wide, known as the "representative of the future of lighting technology" LED (new semiconductor light-emitting diode) industry is experiencing an extremely rapid growth period. And in the meantime, the huge business opportunities and good market prospects, it is stirring up a global investment boom in the LED industry.

Investment opportunities

According to CIR, the global LED market will grow from $3 billion 200 million in 2004, increased to $5 billion 600 million in 2008, the high brightness LED market value will be increased from US $1 billion 600 million to US $2 billion 640 million, ultra high brightness LED market will grow rapidly from 2006, and accounted for 22% of the global market share in 2008.

The key reason for LED to have such a broad business outlook lies in its unique characteristics of high energy saving. As the third generation of semiconductor lighting materials, the life of LED is 100 times that of ordinary incandescent lamp, energy consumption is far less than the incandescent lamp, the replacement cost is lower, and has small volume, safety, no pollution, no maintenance, fast response and other ancillary advantages.

For this reason, LED applications, but also from the original display, mobile phones and LCD background light, etc., to expand into more profitable applications. For example, general lighting, theater lighting, car headlights, brake lights and traffic lights, and so on, even in the most popular high-definition LCD TV, LED is also expected to replace the CCFL backlight has been used. And this is just the beginning. Insiders assert that: the future of the most attractive prospects for the LED industry, may not be able to see the application of hot spots."

In fact, many experts believe that the international community, in twenty-first Century, the photoelectron may replace the traditional electronics, become the biggest industry, and is an important indicator of national economic development and comprehensive national strength; while LED is the most important component of optoelectronic materials and optoelectronic industry, is the basis for the optoelectronics industry.

Therefore, it is reported that LED has been listed as one of the "11th Five-Year" national major scientific and technological field; in the next 5 years from the beginning of this year, the Chinese government will put the semiconductor lighting as a major project of the Ministry of science and technology and promote; Shanghai, Dalian, has approved Nanchang, Xiamen, Shenzhen, as the LED industry base.

The experience that the 2008 Beijing Olympic Games and Shanghai in 2010, display industry will provide a rare market opportunity for LED. "Because according to experience, the next few years China will impose lighting project plan, the local separate bidding, and then self LED practitioners can share the LED lighting engineering industry, profit amount, and may not even be able to estimate." See the situation to attack

In the face of such a huge business opportunities, from the global lighting giant to the downstream of small and medium sized manufacturers, are eyeing the LED market expansion, turns to attack.

In 2006 this year, held in China in Beijing () in the Seventh International Lighting Fair, LED exhibitors have accounted for 2/3, while last year, only less than 1/3. It is said that even conservative estimates, now enter the field of LED funds each month more than 30 million yuan. Only with China's Shenzhen for 2003, the local LED enterprises is only twenty or thirty, but the last two years with the LED market is widely optimistic, technology matures, engaged in LED enterprises began to get together in Shenzhen and was the explosive growth.

Yu Wenjie, general manager of Shanghai Xin Mao Technology Co., Ltd. seems to be engaged in LED display industry, the development of the road will be significantly different from some other industries. For example, almost all of the beginning is to go their own design, self trial Road, so each enterprise will have a strong sense of development and development capabilities. Although sometimes the product surface seems to be similar, but the actual products still have some different, complementary."

In addition, Yu Wenjie also reminded investors wishing to enter the industry, the LED industry is basically still a custom production taste, and different customer preferences, different installations and applications, the demand will be different, so relatively suitable for flexible production mode, need to have a project technology and production team. In terms of cost, in addition to the cost of materials, the main factor is the production of people, the demand for fixed assets and other production factors.

However, it is precisely because the LED industry on capital, equipment requirements are low, into the industry, often in the majority of private small businesses. Although this to a certain extent, make the industry a higher degree of marketization, but also make the new application of the product, the technology is not mature enough reliability, causing some negative effects. Sun Group Product Manager Wen Xin said: the current domestic LED technology is not mature, the domestic market is also mixed, in the material, packaging, technology, testing and other aspects of the gap with the international level." While the majority of low-grade products, high-end products, the ability to develop new products, such as the urgent need to strengthen the practical problems, but also makes the development of independent intellectual property rights of LED products, has become a priority.

Note: experts remind investors, compared with the developed world LED industry area, China is just at the beginning stage, are still in the industrial scale and production capacity of a relatively lower stage; but this industry is the key technology, as long as the technology to keep up with the trend, the formation of natural advantages, can to find the precious opportunities in the industrial chain.