Barbaric growth caused by the mishap most LED companies will die of price war

The story seems to have China manufacturing off a pattern: in the high-speed growth process in the industry, often accompanied by unprecedented brutal price war, the result of intense market competition reshuffle makes most participants to die in battle, a few survivors are scarred, lack the support of core technology of the whole industry will be at a low ebb.

Today, China's LED industry seems to be in accordance with the provisions of the above made in China classic script rehearsal routine.

Guangdong's latest LED industry research report predicts that in 2014 the Chinese mainland market only LED lighting growth rate will reach 80%, the entire LED market will reach RMB 350 billion yuan.

The corresponding is pour in market participants. According to relevant statistics, as of 2013, a total of 52 LED listed companies in China, located in the upstream chip, midstream packaging, downstream applications (including LED lighting and LED display) and other industrial chain. In addition, China's LED has reached nearly 3 non listed companies, mainly in the Pearl River Delta, Yangtze River Delta region. Among them, gathered in Shenzhen as the center of the Pearl River Delta region of non listed LED companies of about 2, accounting for more than 70% of the total LED enterprises in china.

"The vast majority of LED enterprises in the Pearl River Delta region belong to the labor-intensive enterprises with homogeneous competition, most of them rely on the rise of the price war, and eventually will die in the price war. A brokerage industry analyst said.

In the face of the whole industry has the intense competition environment, Shenzhen city aibisen Au Optronics Co chairman Ding Yanhui told reporters that some well-known manufacturers in the industry has faced increased inventory, accounts receivable to recover the dilemma.

In fact, the industry has begun to reshuffle the final result, some industry insiders have a more severe judgment. In the chip sector as an example, Hangzhou Silan azure general manager Jiang Zhongyong think, now about 20 domestic chip manufacturers, after 5 years can survive only about 5.

Shenzhen LED manufacturers insiders said, on the one hand is a huge market prospects, on the other hand, with manufacturers swarmed into the low threshold, coupled with the industry standard, the absence of the "rules of the game, lost the rest of the only law of the jungle. "

Barbaric growth"

Domestic LED started in 1970s, after nearly 40 years of development, has begun to take shape. However, rather than large, big but not strong, Nishajuxia fish is still the current situation of the industry. Ding Yanhui said that the vast majority of domestic LED enterprises are concentrated in the middle and lower reaches of the industrial chain, the core technology is mostly concentrated in the hands of Japanese and Korean companies.

Relevant data show that as of the 2 quarter of 2014, Guangdong LED patent authorization for the amount of 62540, accounting for the same period the country's LED patent authorization of the amount of 28.96%, of which Shenzhen ranked first in Guangdong in the top 18077. However, the situation behind the data is difficult to be optimistic.

It is understood that in the domestic LED industry patent licensing, the core of the invention patents accounted for only about 5% of the total, a large number of patent licensing is mainly for the design and utility model patent licensing. This just shows the real status of the domestic LED industry labor-intensive low-end manufacturing.

Wu Haiyan, an analyst with the emerging industry strategic think tank, said that the amount of patent applications and licensing is an important indicator of a country or region's technological innovation capability and level. As one of the most important indicators of the quality and quantity of the invention patent and reflects the regional innovation capability of enterprises to a certain extent, have more patent regions and enterprises have a larger initiative in the process of accelerating the transformation of economic development in the.

In fact, due to the domestic LED industry is in a high-speed development period of expansion, a large number of firms in revel in the fantasy spectacular explosive growth when the international industry giants are opening Chinese LED industry head mount Damour damocles.

During the interview, the number of LED manufacturers in Shenzhen boss, are not worried about this issue. They believe that the international giants in the current domestic weak LED patent system is almost at a vulnerable position.

In fact, this is NVC, FSL, including Elec-Tech, Jiuzhou optoelectronics, Arrow Electronics, Chau Ming technology, Cenda, silicon semiconductor lighting, poly powered, photoelectricity, honglitronic, gallium in semiconductor and a large number of leading enterprises spare no effort to promote the LED behind the LED Industry Patent Alliance of industry.

Price: flawed manufacturing

Sometimes suddenly feel that there is no technology LED, it is a manufacturing industry, when it comes to LED downstream industry on Japan and South Korea, Europe and the United States and other regions of the chip technology, Ding Yanhui said.

In fact, LED lighting is still in the penetration period, therefore, the price is still the biggest factor in the promotion of LED lighting. Therefore, the industry generally believe that in the stage of technology change rapidly, consumers don't need lamps for 10 years does not change, so in the standard premise, enterprises can reduce costs, without having to put the lamp life to achieve the ultimate performance. This is only the end of the growth of the soil to get together.

Chau Ming Technology chairman Lin Mingfeng believes that the entire LED industry now has a total of 29000 manufacturers, too much, the 3000 is enough. He said that the strength of the enterprise can take short-term strategic, predictable income does not increase profits, the next phase to take back, and now the market is too much