LED industry: opportunities exist despite great risks

China Suppliers


Although the LED enticing, widely popular these days, but as development of high-tech industry, is still risky. Pattern of living in the vulnerable sectors of our LED enterprises are facing more problems.


The biggest risk is the non-core technology


LED, said a senior expert Dr. Zhong Qun, LED applications, risk is not the core raw materials, no testing platform, patent-free, high cost, no order of the market, no standards, the final analysis, no technique, especially in non-core technology.
utility scissors


It is reported from the upper epitaxial wafers, and chip manufacturing, to the middle of the package, to downstream applications, technical features and capital characteristics very different, gradually reduce the barriers to entry. Upper wafer with a typical "double high" (high-tech, high capital) characteristics of the upstream chip also has a high technical content, the characteristics of relatively capital-intensive, mid-stream content packaging and capital investment in technology, we should lower, while the application of the product technical content and the minimum capital investment.
fold flat colander


The typical Chinese LED industry chain structure is not balanced. The 2008 chip, package and application output ratio of 1:9:22, industrial development malformation. Overall, China's LED business is very large, but the output is very low, not a big business. In 2004, China's GDP is smaller than an LED Nichia. Although the past few years the development of our LED is constantly getting better, but overall the situation has not fundamentally changed.


Because no technology companies gathered in the Chinese LED industry chain downstream, the homogenization of a serious problem. In the fierce competition in the downstream areas of the industry chain, a number of companies playing the "price war." Shenzhen Quantum Optoelectronic Co., Ltd. General Manager Liu Zhen describes a small part of the business opportunities for quick results using the local governments everywhere to install all kinds of quality LED products and defects of unfair price war, a direct result of "bad money drives out good money" emergence of the phenomenon everywhere. Chung Kwan said, LED display used to be a very good value industries, the market is still the largest in China. China's display but the price is growing, the quality requirements are getting lower and lower, the market situation is very confusing, and LED display of foreign similar products the price is 5 to 10 times.


Initially appear overheated investment


Industry experts generally believe that the overheating investment in China has begun to appear. National high LED special committee appointed director of Hao Zheng Wen that from the domestic market and the number of LED industry point of view, has been duplication of investment. In the state of the LED industry to support running high, LED industry, the new investment over the increasing intensity of the situation, the enterprises to seize the valuable advantages of the technology or core competencies, need serious consideration.


LED industry, according to senior engineer, research centers Dr. Zhang Xiaofei introduced in this year's LED investment plan, 52% invested in the application, 37% invested in the chip industry. Source of the above investment, accounted for half of the Taiwanese capital. But unfortunately, the mainland with huge dowry, marry the technology of Taiwan's third-and second-hand equipment. He also said investment in 2009, mainly concentrated in eastern China, the traditional LED industry base of Guangdong's investment less, the future of China's LED industry center may move northward.


And Liu Zhen expected ,2009-2010, LED chip scale packaging business expansion, making 2008 the surplus production capacity may be reproduced Depression scenario. He also said that the Chinese 18 provinces and cities have more than 100 crystal silicon solar project as a "first in command", with echoes, more than 100 cities to the local public lighting LED chips as a monopoly investment . It goes on, the National LED industry standards, product standards will not be able to identify and implement real. Parts are stepping up development of local small standard LED, LED domestic enterprises make an issue of domestic demand will be difficult. The effectiveness of the national six policy and government investment may follow after the weak, making the market to support the continued prosperity of a problem.