China's LED industry accused of gloomy prospects?

Innovation is the soul of a nation's progress and an inexhaustible motive force for the prosperity of the country. Such as for several years, but a return to reality, often make people fell dejected.

Recently, the domestic market has 10 LED companies raised funds more than $3 billion lying on the account, and another 9 companies lined up to be listed. However, these raised funds invested in the market competition, and the lack of investment in the development of core technology chip.

At the same time, the global LED lighting market top five suppliers of PHILPS, OSRAM, GE, CREE, has entered the Chinese Asian market, some multinational giants have formed a LED patent alliance, the vast majority of the upstream industry's core patent by foreign enterprises to master. They are a step by step propulsion technology monopoly strategy.

LED lighting is an advanced light source, however, the development of LED industry in China, but it makes people feel a gloomy outlook, reflecting the status quo of China's real economy.

3 billion yuan is not willing to invest in the core technology, continue extensive development, repeated investment, making the seemingly bright prospects for the LED industry is gloomy

In recent years, LED has become one of the most popular industries of venture capital and private equity investment. Commission announced a total of 515 IPO applications in the list of enterprises in the trial, at least 9 related companies are waiting to be listed.

This is the recent Beijing to find the LED industry in the spring of the seminar on the message, but this is not a good news. According to statistics, in 2011 a total of 7 domestic LED industry enterprises in the A-share market to achieve IPO, the cumulative amount of financing of $3 billion 625 million yuan A. From the market point of view, of which 5 companies landing gem, the other 2 are listed on the SME board. These ambitious plans to expand the enterprise, however, the funds raised are used in capacity expansion projects and industrial chain extension.

According to the China Development and Reform Commission issued the elimination of incandescent roadmap, in 2012 China began to gradually disable incandescent light, in 2012 the Chinese government will spend 40 billion yuan for LED procurement, the company's financial subsidies for 30%. Looks like a bright market prospects, is bound to set off a new round of investment boom, but also to many local governments and businesses are reluctant to turn around and look at the LED can not see the dark".

Some experts predict that as soon as possible, in 2015, LED lighting market share in China will reach 20%, driven industrial scale of $500 billion. However, due to overheating investment, the cost of SUNCOO, the lack of standards, the domestic downstream demand has not been effectively stimulated, LED industry overcapacity and disorderly competition situation.

For a time, the government's policy subsidies and support, making the LED application market demand is rapidly released. LED lighting industry access threshold is low, many small businesses, even small workshops can be easily poured into the downstream industry to fish in troubled water. At present, China's LED industry a large number of small and medium enterprises have closed, continue extensive development, the phenomenon of repeated investment worrying.

Where is the future of LED? In the independent research and development of upstream chips, however, China's production of the core technology of the production of the product is almost no, mainly concentrated in the field of application. LED chip is the core material of LED lighting, domestic technology and industry is still in the incubation period. At present, most of the LED lighting products in China, mainly from the United States, Japan and China, Taiwan and other places of import.

If the core technology of "short board" situation is not reversed, a direct result of the LED financing of listed companies may be brought by overcapacity, and further release to production capacity expansion, the pressure of competition will intensify, low-level competition will be more intense.

China's real economy through the old road, once again broke out in the LED industry.

To master the core technology of the foreign market is speeding up the occupation of China, making early and quick open LED lighting market "wedding dress for others"

The global LED lighting market top five suppliers of PHILPS, OSRAM, GE, CREE, has entered the China Asian market, at the same time, most of the upstream industry's core patent by foreign enterprises to master. In contrast, domestic, LED application products manufacturing capacity accounted for half of the world, but there is no enterprise specializing in the development and production of LED optoelectronic components. Technology and patents in the field of global LED, more than the United States, Japan, Germany and other developed countries have a large number of companies. As long as they pedal a little, the whole LED international market inevitably occur butterfly effect".

State policies, government support, and capital adequacy do not address the core issues. The three flow of enterprise sales force, second rate companies to sell products, first-class enterprise selling technology". With foreign enterprises breaking the wrist, the lack of core technology innovation ability has become China's enterprises often lost fatal mishap, which has become a serious restriction of China's industrial development and economic construction.

Industry competition, LED lighting reshuffle inevitable. Enterprises in order to strengthen their right to speak in the field of technology, through technology upgrades to the middle and high-end products, it is imperative. As the end of the industrial chain, the application of funds to carry out technical upgrading or development of core technology, and not only in the production capacity expansion project on the crazy money.

In recent years, PHILPS and other international manufacturers continue to accelerate the pace of mergers and acquisitions in the industry to accelerate the layout of the whole industry to enter the traditional off-season. Late last year, PHILPS acquired one of the world's five largest lamp manufacturers in Spain outdoor lighting group, accelerate the depth of the global LED lighting industry chain layout