LED industry uses innovation to develop and avoid the turmoi

Source:AdminAuthor:WPOWER Addtime:2019-10-31 Click:
LED industry uses innovation to develop and avoid the turmoil of solar photovoltaic industry
In recent years, the LED power industry has achieved rapid development under the promotion of the super-conventional support policy. This industry has also become the development focus of the city during the “Twelfth Five-Year Plan” period. It plans to build a first-class and internationally competitive industry by building a series of green light source industrial bases and building a green light source trading center. The cluster will become one of the city's output value of over 100 billion yuan by 2015.
At present, the domestic LED power industry faces a turmoil similar to that of the solar photovoltaic industry in the past: once the scenery was overdone but the production capacity was severely overcapacity, and the shrinking of the international market led the industry to enter the winter. In the past two years, there have been hundreds of cities in the country to list LEDs as an emerging industry with priority development. Most areas in the Pearl River Delta are also developing vigorously and set up a number of LED industry bases. A large number of LED launches, in addition to investors' profit-seeking mentality, there are more local government's political anxiety. Some places do not have the basics and conditions at all, but they also insist on LED. Last year, the number of MOVCD machines registered and filed by the National Development and Reform Commission reached more than 700 units. The madness of developing LED industry in various places is evident.
However, the development of the LED industry in our city has a relatively solid foundation, and it is not “follow the wind”. The city has introduced more than 50 LED projects to date, with a total investment of about 26 billion yuan. The policy support has been continuously increased. The subsidies for MOVCD equipment have reached more than 60 million yuan, as well as technologies and funds such as Citizen, Zhenmingli and Delixi. Large-scale enterprises with strong strength are the backbone. Jiangmen LED has formed a complete industrial chain covering upstream epitaxial wafers and chip manufacturing, midstream packaging, and downstream applications, with an annual growth rate of more than 30%. In the first three quarters of this year, the output value of LEDs was 11 billion yuan, a year-on-year increase of 27.4%. The growth rate has already fallen. According to industry experts, due to the fluctuation of the entire industry, about 30% of LED small enterprises in the city will be eliminated, but this may be more conducive to the healthy development of the industry.
The main performance of the current disordered competition in the LED power industry is that the level of industrial technology is low, the gap between chip R&D and manufacturing and foreign giants is large, lacking its own standards and testing systems; second, the industrial structure is very unreasonable, most domestic LEDs Enterprises are crowded in the downstream profit margin of 30%; the third is that the products mainly rely on exports, the added value is not high, it is difficult to carry out technical accumulation; the fourth is the series of problems facing market cultivation and development, consumer acceptance, cost and price. This disorderly competition will inevitably hurt the entire LED industry. Many small enterprises will face problems such as market and capital, and reshuffle will be inevitable.
Recently, the National Development and Reform Commission and other departments have issued a timetable for the phase-out of incandescent lamps in China. This is a major positive for the LED power supply industry. However, if the product cost and price cannot improve the acceptance of consumers, it will still not be able to turn the benefits into Substantial development momentum. Jiangmen LED's export rate exceeds 80%. When the economic downturn in developed countries and the demand for LED lighting products shrink, if you encounter the "double anti-" (anti-dumping and countervailing) investigation lawsuits like the photovoltaic industry, then it will fall into the trap. The dilemma of a vicious price war.
In the long run, the LED power supply market has broad prospects, but the biggest problem facing the current development of the LED power industry is how to enhance its endogenous competitiveness in the fierce market struggle. Therefore, we must fully break through the core bottlenecks of the lack of core technology and the control of key equipment, as well as the difficulty of marketing and application, so that the industry can gain a broader space for growth.        

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