During the period of 12th Five-Year, China's LED enterprises have sought to expand the upstream industry

Days ago, domestic LED packaging industry leading enterprises listed companies -- nationstar announced that the country star power and other three shareholders jointly invested 600 million yuan to set up a joint venture to produce LED chip. China Star optoelectronics hopes to invest through this project, the formation of chips, packaging and lighting applications in the vertical integration of the whole industry chain. Marking the domestic LED industry is constantly expanding upstream, in order to promote the upgrading of the LED industry, to avoid becoming a low-end assembly and processing of LED industry base.

In addition, Guangdong, Guangdong, Foshan Elec-Tech Wright Saiwei technology and many other LED companies, has started to increase in investment in the field of LED chip. Among them, BDO Runda on its subsidiaries to increase 320 million yuan, increasing the development, production and sales of LED chip. In addition, at the beginning of December, the global LED chip giant CREE (CREE) a $50 million investment in Huizhou built chip production base also officially put into operation.

Although China's LED industry the rapid expansion of the scale, the average annual growth rate of around 30%, according to statistics, in 2009 the LED industry sales revenue reached 82 billion 700 million yuan (including LED products), but in the rapid development of the LED industry in China is facing some problems: the key equipment and materials basically rely on imports; focus on low-end products the field of price competition.

LED, which is one of the most promising high-tech industries in the world. It has high technical content, long industrial chain and strong driving ability. It has expanded the application of products from the field of electronic information to the field of illumination. In 2009, the global LED products (excluding application products) sales of approximately $11 billion 800 million, nearly 10 years of global LED industry average annual growth rate of more than 20%.

"China LED industry scale is composed of many amateurs into piling up, industrial development is still in the initial stage, the lack of core technology, lack of innovation, market competition, product quality is uneven in quality etc. chaos seriously hindered the development of these problems, the domestic LED industry. Insiders said that the introduction of the road there are currently a total of more than 3 thousand domestic LED companies, of which 2/3 is the downstream enterprises, only about more than and 50 upstream enterprises.

According to industry research institute statistics show that in 2010 the scale of China's LED industry is about 125 billion 600 million yuan, of which, LED manufacturing, packaging, application output value was $3 billion 600 million, $27 billion and $95 billion. This set of data shows that China's LED industry in the upper reaches of the manufacturing sector is weak.

Shenzhen LED Industry Association President Wang Dianfu in an interview with the media pointed out that Chinese enterprises mostly do not grasp the core technology of LED, LED chip core technology mainly lies in the famous PHILPS, OSRAM, CREE, Nichia and a few other industries foreign hands.

Chinese LED enterprises to enter the upstream chip industry, you can better carry out the vertical integration of the industrial chain, enhance the cost advantage and the ability to resist risks. LED companies must break through the field of upstream chips, in order to keep the industry healthy development. If domestic enterprises blindly competition in the downstream, it will inevitably become a well-known foreign enterprises in the low-end processing and assembly base. Societe Generale Securities analyst Liu Liang believes.