Interpretation: leading to strategic emerging industries LED into a dilemma

Due to the lack of independent intellectual property rights and core technology, some strategic emerging industries in China are still in the low end of the industrial chain. Especially for the LED and other strategic emerging industries, after the "typhoon pigs will fly" bonus era, development of overcapacity, suddenly fall into crisis decline in product prices, Small and micro businesses are on the verge of collapse. What is the reason? I participated in the relevant research group, in Shenzhen, Shanghai and other places for research. Through the investigation of the LED industry, it is found that the problems and constraints in the process of the development of strategic emerging industries in China are common.

Since 2011, by the external impact of the economic downturn, as an important part of strategic emerging industries in the LED industry has experienced overcapacity, falling prices, small and medium-sized micro enterprise bankruptcy a development crisis, especially in 2011 junduoli, bolunteguang photoelectric crash and the 2012 vision optoelectronics, Andy, etc. a series of photoelectric kabang LED field star enterprise collapse, attracted our attention. The main problems and constraints faced during the development of LED industry in understanding and demand on macroeconomic policies, speed up the development of LED industry, avoid heavy scale expansion, the development of light technology innovation ", and strive to achieve scientific development". We went to Chinese to September 16th known as city of LED in September 9, 2012 in Shenzhen city and Shanghai city to conduct research, and Shenzhen City, Shanghai city development and Reform Commission and other government departments and Shenzhen City, Shanghai LED Industry Association, key enterprises responsible for the investigation and discussion, a number of key enterprises in the LED domain, to clarify a deep understanding of China's LED industry development present situation, difficulties and problems encountered in the development process.

LED industry is facing difficulties and problems

LED industry as an important part of the national strategic emerging industries, at all levels of government support and access to various funds, the LED industry continues to expand, the rapid development trend. But we also found that, from the beginning of 2011, with the LED industry gradually developed a series of factors, different degree of investment overheating, the European debt crisis, labor costs rose sharply, the RMB exchange rate flexibility, enhanced quality, cost problem and so on, not only the domestic enterprises in the development of a LED large losses, and because some well-known LED enterprises collapse will LED industry to make LED industry exposed in the teeth of the storm, many important issues worthy of our attention. In the survey, the enterprise in the future is full of confidence, but also admits that the current development is facing the following difficulties and problems.

First, the rapid pace of expansion of production capacity, market competition is becoming increasingly fierce.

In recent years, more and more enterprises and capital are subject to relatively high expectations of the industry gross margin, lower barriers to entry and broad potential market, and the local government to support the competition to enter the LED industry. Private capital, public capital has been invested in the LED industry, according to data provided by the Federation of Shenzhen LED industry, since 2009, China's LED industry to attract overseas investment of more than 80 billion yuan. At the same time, according to the Institute of Engineering LED industry statistics, in 2011 the annual increase in China's LED industry scale investment projects (investment of more than 100 million yuan) a total of 132, compared with an increase of 58 in 2010. 2011 China MOCVD new equipment up to more than and 400 units, accounting for the world's newly installed capacity of 60%.

In addition, according to entrepreneurs reflect, Yangzhou, Jiangmen, Wuhu and other local governments in 2009 and 2010, continued to produce a large number of subsidies for the purchase of LED epitaxial wafer MOCVD equipment. According to the engineering LED Industry Institute of statistics, from 2009 to early 2011, only the introduction of equipment subsidy policy in Yangzhou, Jiangmen, Wuhu three new MOCVD equipment amounted to more than 630 units, accounting for 50% of the total number of domestic MOCVD planning. Entrepreneurs believe that this "herd" of the "great leap forward" development led to the LED capacity of the outbreak short-term growth, but according to one and a half to two years of production cycle, the next two years will be the peak of the release of new capacity, industry competition will become increasingly fierce.

Fierce competition in the LED market is bound to lead to price war since 2011 frequency. Data show that since 2011, upstream of the sapphire substrate materials fell more than 50%, 2 inch sapphire substrate price from $35 / piece fell to the three quarter of 2012 of $10 / piece; 7.5mil*7.5mil 45mil*45mil blue chip blue chip low power and high power prices in 2011 were 55.9% and 55% decline; a substantial price reduction in upstream products directly to the downstream product prices fell sharply lower prices, part of the LED terminal application products for more than 50%.

There are entrepreneurs pointed out that at present in the LED terminal products, the price war is very common, many products prices are again in January, an ordinary fluorescent lamp LED two years ago, the price is 200 yuan, a year ago is 150 yuan, half a year ago is 100 yuan, now only 80 yuan; and outdoor full color P16 display, 2009 the price is 8000 yuan per square metre to 10 thousand yuan, and so far, the price has been reduced to 4000 yuan per square meter, it can be said that prices plummeted. Although the price dropped in favor of LED products in the market, but at least in the short term, the enterprise LED industry, if production costs not in the same or faster speed, will face the impact of falling prices to a certain extent, they have to endure the pain of short-term adjustment. As the focus of the development of the national LED industry