LED: a failed enclosure movement?

Introduction: the development of the LED industry in Shenzhen is very difficult at this stage, many enterprises closed down or relocated, and this phenomenon has formed a very sharp contrast in previous years. In mid March this year, the city of Shenzhen in the form of "government gazette" abolished in March 2009 issued on the issuance of Shenzhen LED industry development plan (2009 - 2015) notice. The abolition of planning, so many people in the industry feel the industry has been abandoned by the government and caused a lot of conjecture.

The State supports enterprises to make money?

Japan as early as 1998 on the development of the "light plan" in twenty-first Century, and 1998-2002 invested 5 billion yen in the development of white semiconductor lighting LED and new semiconductor materials, substrates, phosphors and lighting fixtures. According to the policy of Japanese government, the Japanese government also specified 2006-2007 between enterprises or institutions using LED lighting device to replace incandescent lighting device, can obtain investment of 130% excess depreciation, or investment of 7% of the tax relief.

Europe and the United States to support the efforts of the LED industry is not small. The EU launched a high brightness organic light-emitting diode project for information and communication technology and lighting equipment, an investment of 20 million euros, effectively improve the efficiency of organic light-emitting diodes. At the same time, the League also banned the production and sale of incandescent lamps, fluorescent lamps, energy-saving lamps, and promote the development of LED lighting technology.

The United States federal government launched a "national semiconductor lighting project" in 2002, and included in the "Energy Act", enterprises can get $50 million a year for financial support, 10 years a total of $500 million in financial support.

Government subsidies over corporate profits

Back home, Shenzhen City, for the government to participate in government investment projects LED demonstration project enterprises, according to the price of light to give 10% of the subsidies, and discount for 3 years. To undertake the enterprise investment projects LED application demonstration project enterprises, according to 30% of the price of LED lamps subsidies. In addition there are many provinces and cities have introduced a corresponding subsidy LED industry program.

Industry insiders Hu Jun for a data: after several years of construction, Shenzhen's largest LED enterprise is the value of the yuan, but if the government is the development of strategic emerging industries to determine the Internet or biological Shenzhen, just a project are over 100 billion yuan, "this industry, so the shortage of land resources in Shenzhen the government, apparently to give up. I have seen the LED Industrial Park, the scene was broken, the brand erected, and then you can go to the mortgage. "LED Industrial Park," most of them, first hit the ground, engage in a factory, and then lied to the government subsidies. The government is not so good now, you do not usually do not fill me, the government is now very sensible. "

Shenzhen emergency braking role

Lu Weiqiang, general manager of Guangzhou handsome lighting, said the current LED market capacity in 120 billion - 150 billion, but the production capacity of more than 500 billion, serious excess capacity. The people inside the industry, every day to hear the news of the collapse of LED companies, Guangzhou, Shenzhen, Dongguan, Foshan, Jiangmen, everywhere. This year, the middle reaches of the LED packaging companies may want to die 40%, downstream to do LED applications to be abandoned half of the small and medium enterprises. "

Shenzhen's policy change does not stop LED mania elsewhere. In fact, this is a game between government and enterprises. "Once in Guangdong province to promote the LED road lighting have different views, and a letter to the Guangdong provincial science and Technology Department of Guangzhou lighting industry professionals Hu Jun, said:" the local government wants to land finance, the establishment of high-tech park to attract business investment to pull GDP LED, and then took a fancy to the high-tech enterprises and vigorously promote after subsidies the government under the command of the market. It's like strange bedfellows, finally is sure to break up. "

Too many low-end products industry chain integration

The EU requirements, only the efficiency index of more than 0.2 directional and directional LED lamp fluorescent lamp can enter the EU market, demand is 2.5 times higher than before the United States is to increase the energy efficiency index; LED test program, this is undoubtedly a huge increase in export enterprises LED test cost.

Shenzhen haotianxing Electronics Co. Ltd. Luo said, this year the company's LED product prices fell by about 10% compared to last year. To a 16 watt LED fluorescent tube, for example, last year's price of $75, this year's price of $68, down by 10.3%, the export price is almost the same, down nearly 10%. In recent years, the capital into the LED is very much, but in fact, the lighting industry, like many industries, easy to get into the difficult. "

According to insiders, at present, the core technology of LED - chip technology is mainly controlled by the United States, part of a master in Chinese Taiwan, China mainland is mainly LED manufacturing base, the Pearl River Delta is the gathering area of application market larger and downstream enterprises, but can not grasp the core technology of LED lighting products due to flawed price imbalance is the LED industry.