Deep perspective: the advantages and disadvantages of China's LED industry development status

Compared with multinational companies, Chinese LED companies still have a large gap in many aspects. How to effectively improve the core competitiveness of Chinese LED companies and actively participate in the global competition is an urgent issue we need to consider.

First, the advantage analysis

(1) The market entry threshold is lower

1. The technical research has a good research foundation and the gap between foreign countries is gradually narrowing.

Although the domestic LED industry is relatively weak and the level of technology is relatively low, some domestic enterprises have made breakthroughs in technology by hiring overseas technicians. Many enterprises have obtained independent intellectual property rights. The technical level of domestic high-quality enterprises has been compared with that of Taiwanese manufacturers. The level of technology is not much different, and the overall gap with international manufacturers is also shrinking.

2. Less investment in building the factory

The initial investment of LED is 100 million yuan, and the total assets of well-known listed companies in Lianchuang Optoelectronics and Silan Micro are more than 1 billion yuan. The entry threshold for domestic enterprises is low, and it is easy to achieve rolling development. And the liquid crystal panel manufacturing is extremely insignificant in terms of investment of billions to billions of yuan, and domestic enterprises are easy to enter into industrial clusters.

(2) Some domestic superior enterprises have already possessed core patent technology

According to the analysis of Jinqiu Caizhi Consulting, compared with microelectronics, the gap between China's LED field and foreign countries is relatively small. The first light-emitting diode (LED) independently developed by China is only a few months behind the world's first LED. Generally speaking, the current technical level of China's semiconductor light-emitting diode industry is only about three years away from developed countries. Supported by the "863" plan and other scientific and technological plans, China has initially formed a relatively complete industrial chain from epitaxial wafer production, chip fabrication, device packaging and integration applications. Now it is a large-scale enterprise engaged in the production of semiconductor light-emitting diode devices and lighting systems. There are more than 400 products, and the product packaging has occupied a considerable share in the international market.

(III) LED mid- and downstream industries have labor cost advantages

The semiconductor lighting industry, especially the chip packaging and lighting system industry located downstream of the industrial chain, is both a technology-intensive industry and a labor-intensive industry, and its difficulty and risk are much lower than the microelectronics industry. The development of the semiconductor lighting industry can give full play to China's human resources advantages, drive related industries, and increase exports and absorb employment. After the technology is mature, LED downstream packaging and device production are labor-intensive, and China has obvious labor cost advantages.

(4) The initial formation of industrial cluster effect

China's LED industry has developed rapidly in recent years. LED products can be widely used in landscape lighting, security lighting, special lighting and general lighting sources, and its market potential is hundreds of billions of yuan. Jinqiu Caizhi Consulting believes that China's semiconductor lighting industry is entering an important period of independent innovation and leapfrog development. In 2006, the domestic chip market share reached 44%, and has successfully developed more than 140 new products in four major categories, including LED headlights and miner's lamps. From 2001 to 2006, the average annual growth rate of sales in the semiconductor lighting market was 48%. Become the world's largest producer and exporter of lighting appliances. In 2006, the output value of China's lighting industry was about 160 billion yuan, with exports of 10 billion US dollars, accounting for 18% of the global market. A battle to seize the commanding heights of the emerging industries of semiconductor lighting has already started around the world. In 2006, the global semiconductor lighting market sales exceeded 7 billion US dollars, with an average annual growth rate of more than 20%. It is expected to form a potential market of 50 billion to 100 billion US dollars in the next 5-10 years.

In view of the encouraging development prospects of the semiconductor lighting industry, in recent years, Japan’s “21st Century Light Plan”, the US “Next Generation Lighting Plan”, the EU “Rainbow Plan”, and the Korean “GaN Semiconductor Lighting Plan” have been launched.

In June 2003, China also established the National Semiconductor Lighting Engineering Coordination Leading Group to launch the National Semiconductor Lighting Project.

Faced with the huge temptation of the semiconductor lighting market, the world's three traditional lighting industry giants Philips, General Electric, and OSRAM also cooperated with semiconductor companies to establish a semiconductor lighting company. At present, semiconductor lighting has higher luminous efficiency than incandescent lamps, and is expanding its range of applications at a faster speed. Large-size LCD TV backlights, automotive, commercial and industrial lighting have gradually become the main application areas of LEDs. It is expected that in 2010, LEDs will surpass fluorescent lamps and enter the general lighting field, and the energy-saving effect will be more significant.

Semiconductor lighting is optimistic because of its convincing technology. Semiconductor lighting fixtures have significant advantages such as long life, energy saving, safety, and environmental protection. Its power consumption is only 1/10 of that of ordinary lighting, but the semiconductor lighting industry. Still surrounded by a cloud, cost and other reasons lead to its application is still being promoted. However, people in all industries are quite optimistic about the future of semiconductor lighting, and believe that the new light source will set off an alternative sport that will replace traditional fluorescent and incandescent lighting with semiconductor lighting.

As long as one-third of the incandescent lamps are replaced by semiconductor lamps, the country can save 100 billion kWh of electricity every year, which is almost equivalent to saving the annual power generation of a Three Gorges project.

LED industry chain includes LED epitaxial wafer production, LED chip production, LED chip packaging and LED product application. Among them, the epitaxial wafer has the highest technical content, and the chip is second.

Under the efforts of many enterprises and government departments, China's LED industry has initially formed four major regions in the Pearl River Delta, Yangtze River Delta, Southeast China, Beijing and Dalian, and each region has basically formed a relatively complete industrial chain. Generally speaking, China's LED industry pattern has a high degree of industrialization in the south, while the north relies on many universities and research institutions to have strong research and development capabilities. In terms of geographical distribution, the Pearl River Delta and the Yangtze River Delta are the most concentrated areas of the domestic LED industry. The upstream, middle and lower reaches of the industrial chain are relatively complete, and more than 80% of the relevant enterprises in the country are concentrated. It is also the fastest growing region of the domestic LED industry, and the comprehensive advantages of the industry. More obvious. LED equipment and raw material suppliers have settled in these two regions. The convenient connection with the international application market has created a good service and market environment for the development of the LED industry. The industrial cluster effect is gradually emerging.