Downstream market struggling Chinese LED industry is worrying

OSRAM, a German lighting giant, recently bought a technology company through an investment company to increase its portfolio of lighting control, energy management systems and software. Today, the technology company has become part of OSRAM's ordinary lighting. Through the acquisition, OSRAM hopes to expand and consolidate its position in the energy efficiency of the business, and to further develop the LED business.

In fact, many companies have seen LED as a bright prospect for the growth engine, which of course, there are many Chinese enterprises. However, the development of China's LED industry is not flat road.

The global market: the second half slightly tired"

OSRAM general lighting department chief executive Fineman (Klaus-G nterVennemann) said: "today, the global lighting required energy consumption accounted for 20% of the global electric energy consumption. In the United States, lighting energy consumption accounts for more than 30% of commercial building electrical consumption, based on the need for commercial buildings to improve energy efficiency is also increasing. "

Obviously, the world market, the company's preference for the LED industry is not accidental. Wang Jianying, general manager of Austrian energy technology consulting company, told reporters: from energy conservation to environmental protection, LED industry are revolutionary. The reason why it is popular is that it can save at least 3 times more energy than traditional lighting. Moreover, the LED industry in the process also has a very big progress compared with the past, with high light efficiency, low power consumption, long life, easy to control, maintenance free, safe and environmentally friendly features. "

At present, the macroeconomic impact of the second half of this year, LED industry boom is not optimistic, downstream demand will bear a lot of pressure on the industry. Investment adviser senior researcher He Zaihua pointed out that due to the strengthening of the global economic uncertainty, LED terminal demand outlook is weak, manufacturers to reduce production capacity, the number of suppliers inventory has decreased. But at the same time, the circulation cycle shortened, the efficiency is greatly improved, the delivery period is generally shortened, customer waiting time is reduced, therefore, the current inventory status did not bring to the market a greater impact, on the contrary, the market is more flexible.

Chinese companies struggle in the downstream market

During 12th Five-Year, LED light source technology has been included in China's strategic emerging industries. According to the national semiconductor lighting engineering research and development and Industry Alliance (CSA) released statistics, from January to July this year, China's LED industry plans to add a total investment of 125 billion 600 million yuan. It is understood that the upstream substrate and epitaxial chip is the focus of investment and hot spots, the company is still running fast momentum unabated.

However, although the development of the LED industry in China has been in full swing, the industry has also emerged short board. Insiders said that in the whole industry chain, the upper reaches of the highest profit, but the core patented technology is in the hands of the Japanese Nichia (Nichia), CREE (Cree), Germany's OSRAM and other overseas giants. In the field of epitaxial chips and chips, the United States and Japanese companies in a monopoly advantage, took more than 60% of the profits. Most of the LED companies in China, only in the end of the packaging industry chain, for less than 40% of the remaining profits. To add insult to injury, even the only downstream market, Chinese enterprises are not so easy to operate.

Downstream market is clearly not open. He Zaihua told reporters that Chinese companies rely more on the local government's LED products to digest the municipal engineering, expensive price makes LED into the civilian market is still out of reach. Affected by the weak international market, China's exports of LED products also suffered poor. In the demand stimulus in adverse circumstances, LED product price decline has become the main performance of the market, from the vendor's investment plan, the next two or three years, China LED industry will appear large-scale production release, and with domestic products to increase the rate of decline in product prices, the link will be long-term market trends.

Master the core technology is the key

Although the development of the road is not smooth, but the development of China's LED industry is characterized by the upstream to the downstream development, relying on a strong industrial background, there is still hope to break through many obstacles.

Now, with the first batch of cities to drive the industry gradually into the mature track, the new market is gradually rising. Director of investment adviser Zhang Yanlin pointed out that the domestic part of the provinces and cities by means of financial support, have carried out such activities of city lighting, not only provides unlimited business opportunities for LED lighting market, but also to create the market environment for the development of LED industry.

Wang Jianying believes that China is the world's largest LED production base, the development speed is very fast, the price advantage is also reflected. Although China currently does not import LED, but it is considered the world's largest exporter of LED. Now, we need to pay attention to is the development, have their own technology, because only to master the core technology to have a good and long-term development in this industry, not only by foreign companies always led by the nose. "