How to avoid barrel effect in LED industry"

A large number of capital into the LED industry, on the one hand, quickly pull down the cost of the industry, on the other hand also exposed a lot of disorderly competition problems. Once the lack of core technology, talent and other aspects can not be improved, LED industry is still subject to the shortest short board, and can not meet the expected capacity.

Overcapacity crisis

Throughout this year's LED industry, there has been a serious overheating of the stage of investment. In this case, there is a voice in the industry, how to deal with excess capacity LED? It is understood that many domestic enterprises currently have LED lighting and small power chip technology, high power LED lighting epitaxial material requirements are very high, in this context, China enterprises to the upper reaches of the LED industry chain in a slice is extremely difficult, only a small part of the enterprise to survive in the cracks.

Insiders pointed out that the LED market access threshold is low, the initial investment of 100 million yuan can be built, so that all over the country have launched LED projects, and many have never set foot in the LED industry listed companies have joined them.

According to expert analysis, LED hot situation seems to be somewhat similar to the previous polysilicon and LCD panels. From the current construction and construction projects to start the project statistics, LED production capacity at least overdraft market demand for the next 3-5. After the completion of a large number of LED projects will highlight the LED industry is not concentrated, overcapacity, disorderly competition in the market, lack of talent and other thorny issues.

It is worth noting that, although the investment is high, but the market is not optimistic. This year the price of sapphire substrate has been declining. According to relevant statistics show that this year, 1-7 months, the price of 2 inch sapphire substrate from the beginning of the maximum $35 / piece, down to $13 / piece -15 U.S. dollars / piece, the average decline of more than 50%.

One thing must be pointed out that the upper reaches of the excess capacity will inevitably lead to a decline in the price of LED chips, while the proportion of LED chips in the higher cost of the product, so that the end product may further price reduction.

If the price can bring market popularity is not a way out, but the problem is also reflected in the technical. LED lamp price is higher than the general lamp, but not the main problem. Now many small and medium enterprises in the production of LED lamps in the quality and technology are not clearance, often necrosis. Companies need to work hard in the application of technology, rather than blindly invest upstream.

Should focus on research and development of core technology

LED industry is a new industry of high input and high output, at present, China's LED industry has a large short board in the technical reserves. LED lighting products in China, poor luminous efficiency, color rendering is relatively low. And the main source of the chip to rely on imports, the cost of the product is virtually raised.

Facing the lack of core competitiveness of the terminal, the price is high, but also flooded with defective lighting market, in the face of competition from foreign enterprises, many of the advantages of the local market has disappeared.

Industry experts believe that the bottleneck of lighting companies only to break the LED technology, the way for talent, this is a trend in the development of LED industry, the only independent innovation of core technology research and development, to the lighting market a step ahead. This investment boom if it can improve the defect of the domestic LED technology, will have a positive impact on the LED industry.

Must return to rational investment

On the whole, the current investment boom in the industry has a nodding weight, resulting in abnormal industrial structure. LED investment heat and deserted market polarization, investment enthusiasm should be affirmed, but in these investment behind, should return to the rational, if one-sided investment overheating leads the industry unbalanced, for industry, little help. Balanced and orderly development, is a mature industry has the characteristics.

In addition, in the market, the high price of LED products, for ordinary consumers, it is hard to accept, although the LED chip price a lot, but still can not completely reduce the price of LED products, the price change not only by investing in the upstream can change, more important is the balanced development of the whole industry and the standardization of production, and technology the breakthrough, can not always rely on foreign technology, more need to make their own patents, product prices fell LED.