Decline in chip prices Increased competition in the LED industry

1, the next few years will maintain rapid growth in the LED industry

Over the past 10 years, the cost of LED price increased each year, the current LED light efficiency than the traditional light sources, light overall cost has been lower than the incandescent, halogen spotlights and CFL downlights, 2012 will be equivalent to the energy-saving lamps. 2015 LED products prices may fall to 2010 1 / 5, when the general lighting market penetration to reach 50% by 2020 will account for more than 75 percent of the lighting market.

The current pattern of global industrial competition the United States, Japan, Europe tripod, South Korea, mainland China and Taiwan to catch up. Countries are making the strategic plan, such as heavily subsidized by the government of Japan to promote LED lighting is expected to replace Japan's 2015 rate of 50% in 2020 to 100 percent replacement rate; South Korea in 2015 to ensure that 30% of the general lighting market.

Chinese LED industry output value reached 120 billion yuan, more than 4,000 companies, over the past five years the average growth rate of 35% in 2010, more than 40%. Relevant statistics that the LED output value reached 83.5 billion yuan in Guangdong. Industry output is expected to average growth rate over the next few years, more than 35%. China's current R & D in key technologies have made remarkable achievements, especially in the packaging of products has its own unique place, the application also has a great breakthrough. Patent applications, the LED-related patent applications more than 28,912, including packaging and patent applications accounted for nearly 70%; national testing platform has six, and another three under construction.

2, LED industry, the trend of structural overheating investment

2010 traditional lighting industry output value reached 290 billion yuan in 2010, LED general lighting output 18 billion, up 7.5 billion yuan more than in 2009 140%, LED application market share to 21%, compared with 14% growth in 2009 by 7 percentage points , including LED lights, tunnel lights more than 100% growth rate. League Statistics Domestic LED lights are now over 1.6 million. 2010, less than 1% LED market penetration is expected to reach 30% in 2015. But strictly speaking, general lighting market is mainly government push, the market has not really started, but is a general trend to replace traditional lighting.

2009 domestic investment reached 20 billion in 2010 to 300 million, investments are mainly concentrated in the upstream industry chain. Domestic investment is very large. Part of the solar companies also made investments in GCL Group to invest 25 billion U.S. dollars, the introduction of 500 units built in Suzhou MOCVD LED base.

Continental plans to add 2010, the number of MOCVD equipment for the 2009 world supply 50% of the MOCVD, the new 1466 sets three-year plan, more than 09 global sum of MOCVD equipment, according to this plan, three years after the wafer production capacity 10 to 15 times in 2009. It should be noted that the industry needs up when the number of devices may still be in short supply, but the market is not up, the excess of these devices will not say. Structural trend of overheated investment, more than 1 / 3 of the traditional lighting companies have entered or plan to enter.

3, China's LED industry opportunities and challenges

As China's traditional lighting of the base and mastery of materials technology in the mainstream, China may become the power LED industry. China's control at the national level and volatility of the market impact is obvious.

Domestic LED industry opportunities and challenges exist. Opportunities: 1) traditional and emerging markets with huge opportunities, 2) construction industry led to the lighting industry is more powerful, 3) and the energy saving and sustainable development for the LED industry provides a good opportunity for 4 ) final policy to vigorously promote industry growth last year, the bidding demonstration project in the semiconductor industry represents tremendous significance; challenges: 1) have introduced a model has been developed to promote the application of the policy, 2) has been published in developed countries such as high-energy incandescent consumption of the traditional lighting of the ban, ordering, China needs to hurry to keep up, and 3) other concerned government level to promote the industry's rapid affect the employment situation of the traditional lighting industry, but the transition needs to be in accordance with market rules and policies can only play a catalytic or so, 4) and a strong international giants to enter the downstream applications require us to accelerate the integration, 5) standard patent has become the focus of international competition, 6) industrial distribution of aggregate resources, China is the local economy, to limit local development more difficult ; the upper reaches of the status quo biased towards low-end products, there is a disadvantage in talent, 7), industry support and collaboration is not enough. Technical support is not enough, the development environment is imperfect. Relatively low level of investment, more serious product homogeneity, market testing and certification standards for improvement of the mechanism.