Three major issues become the development of the LED industry

The rapid development of energy-saving lighting industry has not only attracted international lighting manufacturers' large-scale distribution, but also allowed China's regional lighting manufacturers to come to the beach. In particular, the LED lighting industry, which has attracted much attention, has shown rapid development under the vigorous promotion of local governments and the input of large-scale enterprises.

However, at the same time as the rapid expansion of the LED industry, the problems hidden deep within the industry gradually surfaced, constraining the healthy development of the industry.

Rapid expansion of LED industry

Since 2003, China has begun to promote the development of LED lighting industry, put forward the "national semiconductor lighting project plan" and "Eleventh Five-Year Plan for the development of semiconductor lighting industrialization technology" special plan to assist in the promotion of industrial scale and technical standards, and plan "Ten City Wan Hao and the establishment of a "semiconductor lighting base" in the country to promote the application of regional LED lighting.

Under the government's key support, the LED industry and market in China have seen a rapid expansion. The overall output value has increased dramatically. It has also driven manufacturers to actively expand the upstream and downstream distribution of the industry chain, making China not only the world's leading LED outdoor lighting market, but also the global LED industry. One of the major producers of components. China's LED industry has a strong growth momentum. From 2006 to 2011, the average annual growth rate of output value reached 30%. Since 2009, the industry has accelerated its expansion, and the current output value scale has grown to 156 billion yuan.

General and Landscape Lighting Market Expansion

As the world's leading production base for consumer electronics and lighting products, China has also become the world's largest LED module application market. In 2011, it consumed about 35% of LED components worldwide. In China's LED market applications, there are four major application areas: public landscape lighting, electronic product backlighting, display/billboard, and general lighting.

Since 2008, China has promoted the LED landscape lighting market by setting up decorative lights for streets and squares and promoting LED decorative lighting. In 2010, through the government's “Ten Cities and Ten Thousands” demonstration program, LED street lights, tunnels and parking gas station applications were promoted. Inspired by government subsidy measures, the lighting-related application market has grown rapidly. General lighting has risen to 25% and has become the largest application area. General lighting and landscape lighting together account for about 50% of the application ratio. Display lighting has become China's mainland LED. The most important application market forecast is that under the continuous assistance of government policies, the market size of China's general lighting and landscape lighting will continue to show a high degree of growth.

The three major issues become an obstacle to the development of the industry

Although China's LED industry stimulated by the favorable policies and market demand, entered the "blowout period" quickly, but the three major issues that plagued the development of the industry still exist, and laid a certain hidden danger for the healthy development of the entire industry.

The first is that the technological innovation capability is weak, and the high-end product technology of the value chain represented by chips is still mainly in the hands of foreign companies. For example, China's existing 980 MOCVD machines are basically imported. The key equipment in the middle and lower reaches is also imported, laying a hidden danger for the growth of the industry.

Followed by the lack of lead in the industry leading companies. A large number of small and medium-sized enterprises occupy the middle and low-end market, and they have a big price war. The quality of their products is worrying. The annual operating revenue of large-scale LED companies in China is only several billion yuan, which is far from the scale of the international giant's annual sales of 10 billion US dollars.

Finally, China still has direct subsidies for production enterprises, and policy guidance needs to be standardized. At present, governments at all levels have introduced some promotion policies. The intention is to assist subsidies for technological innovation, but they have been used by some enterprises to expand production capacity, causing unfair competition and disorderly expansion of production capacity, disrupting the order of the original market, and requiring policy adjustments. .

Improve policies and promote development

In response to these problems in the industry, the author suggests that relevant policies should be improved to guide the development of the industry.

The subsidy at the production side will be cancelled, the scope and intensity of government procurement and demonstration projects will be expanded, and the development of the industry will be stimulated by the larger and more competitive domestic market. At present, Guangdong Province has adopted LED lighting in a large area on street lights, achieving significant energy savings. In the public service fields such as schools and hospitals, LED lighting products can also be widely used, and consumption subsidies can be used to open the door to the general residential user market.

In addition, the relevant departments should formulate LED product certification standards in advance; when the government purchases, establish a "benchmarking system" to guide the improvement of product quality; coordinate and coordinate local development plans to avoid low-level redundant construction. Strengthen the construction of industrial technology service intermediary platforms, establish a collaborative innovation mechanism among enterprises, and promote core and common technological breakthroughs.