Investment frenzy cooling analysis LED out of favor"

Shenzhen LED related industries occupy half of the country, but due to the lack of core technology, overcapacity, investment overheating and other reasons, recently announced the abolition of the LED Shenzhen industrial planning. For this matter, the majority of users of different views, can be broadly divided into two categories, optimistic and sad; at the same time, many users began to care about whether the LED projection will suffer?

On LED will fall from grace

Optimists, it is natural to see the future prospects of the industry and market changes. On the one hand, due to overcapacity in the LED, in the short term, LED related products will be rapid price cuts for the people is good news. On the other hand, due to the decline of the LED industry, local governments to support the efforts to reduce, in the long run, is conducive to independent research and development of domestic enterprises, strengthen market competition mechanism.

Follow the trend of overcapacity

Sad, worried about the market in the short term. Due to the lack of domestic key, core, high-end technology, has long been in the development of low profit model, after the loss of support, the problem of insufficient funding for research and development, increasing the probability of loss of high-tech personnel. On the other hand, after the big move, which means that a lot of LED SMEs will collapse, prone to the pattern of oligopoly, and may even appear in the domestic automotive industry joint venture scenario.

The last meal

In fact, LED as the rise of emerging industries, policy support is limited, the future development of the industry can grow, and ultimately determined by the cruel market. In addition, the level of technology is not simply money can measure, technical personnel can also not simply money, all still have to go through the baptism of the market, to quweicunzhen. At the same time, this initiative is also conducive to improving the financial market, greatly reducing the risk of investment.

But we believe that with the intensification of the domestic market competition, the real strength of the company will have a scientific research and development strength, the future of the LED industry will be more bright.