Although LEDs are attractive and highly sought after, they are still at risk as a developing high-tech industry. China's LED companies in the weak industry are facing more problems.
The biggest risk is coreless technology
Dr. Zhong Qun, a senior expert in LED, said that the risk of LED application lies in no core raw materials, no detection platform, no patents, high cost, no order, no standard, and ultimately no technology, especially no core technology.
It is reported that from the upstream epitaxial wafer and chip manufacturing, to the midstream packaging, to the downstream applications, the technical characteristics and capital characteristics are very different, and the industry entry threshold is gradually reduced. The upstream epitaxial wafer has the typical "double high" (high technology, high capital) characteristics. The upstream chip also has the characteristics of high technology content and relatively dense capital. The midstream epitaxial package has lower technical content and capital investment, while the application product is lower. The minimum technical content and capital investment.
China's LED industry has a typical unbalanced industrial chain structure. In 2008, the output ratio of chips, packages and applications was 1:9:22, and the industrial development was deformed. In general, there are many LED companies in China, but the output value is very low, there is no big enterprise. In 2004, the total output value of Chinese LEDs was not comparable to that of a Nichia. Although the development of LED in China has been improving steadily in recent years, the overall situation has not changed fundamentally.
Because there is no technology, Chinese LED companies gather in the downstream of the industrial chain, and the problem of homogenization is serious. In the fierce competition in the downstream of the industrial chain, some companies have launched a "price war." Liu Zhen, general manager of Shenzhen Quantum Optoelectronics Co., Ltd., said that a small number of enterprises have taken advantage of the opportunity of local governments to make quick successes, install various LED products with quality defects and carry out unfair price wars, which directly leads to "bad money to drive out good money". The phenomenon is everywhere. Zhong Qun also said that the LED display was originally a very good value industry, and the market is still the largest in China. However, the price of China's display screens is getting lower and lower, the quality requirements are getting lower and lower, the market situation is very chaotic, and the price of foreign LED displays is 5 to 10 times that of our similar products.
Initial investment overheating
Experts in the industry generally believe that the phenomenon of overheated investment in China has already begun to appear. Zheng Haowen, director of the LED Committee of the National High Enterprise Committee, believes that from the current domestic market and the number of LED industry, there has been a problem of repeated investment. Under the circumstances that the country's support for the LED industry is not diminished and the investment in the new LED industry is increasing, how to grasp valuable technologies or core competitiveness with advantages must be seriously considered.
According to Dr. Zhang Xiaofei from the High-tech LED Industry Research Center, 52% of the LED investment cases in this year have been applied, and 37% have invested in the chip industry. Above the source of investment, Taiwanese capital accounted for half of the country. However, it is a pity that the mainland has greeted Taiwan's third-rate technology and second-hand equipment with generous dowry. He also said that the investment in 2009 was mainly concentrated in East China, and the investment in Guangdong, a traditional LED industry, was relatively small. In the future, China's LED industry center may move northward.
Liu Zhen expects that the large-scale expansion of LED chip packaging companies in 2009-2010 will make the depletion of overcapacity in 2008 likely to reappear. He also said that more than one hundred cities in 18 provinces in China have regarded the solar crystal silicon project as the “top-ranking projectâ€, which echoes the fact that more than one hundred cities have monopolized local LED public lighting as a bargaining chip. . In this way, the national LED industry standards and product standards will not be truly determined and implemented. All localities are stepping up the development of local LED small standards, and domestic LED companies will be struggling to make a fuss about domestic demand. The effectiveness of the six national policies and the lack of success after the government's investment make it difficult to support the market to continue to prosper.
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