LED industry: Investment overcapacity look forward to the government pull

In the development prospects of the industry and the government's support of the relevant policies, the vast majority of led companies have to face a loss dilemma.

LED overcapacity

Topband intends to invest 380 million yuan to build industrial park, Elec-Tech hit 3 billion yuan LED package, the largest new base for Lehman photoelectric vote in more than 150 million yuan to build high-end LED production line, tiantonggufen 360 million yuan investment LED project, Amethyst photoelectric intends to cast 2 billion 900 million yuan in Xinjiang production of sapphire crystal, lucidity photoelectric order four sets of production LED epitaxial wafer MOCVD equipment, Zhongkai planning 6.22 square kilometers to build LED Industrial Park, started the construction of 2 billion 100 million yuan in Wulong LED industry project, Scott received 180 million yuan of capital LED industry growth rate of coal enterprises, investment 1 billion yuan a foot LED Sapphire project started, the completion of Linyi optoelectronic industry base Inspur a total investment of 750 million yuan construction......

Recently, all over the country is a surge in investment in the LED industry boom, moving billions of dollars of investment projects in the minority. The reason why, an industry source said that this is related to the current policy stimulus.

It is understood that the fourth quarter of this year, a number of semiconductor lighting is expected to guide the introduction of a number of policies. Moreover, the Ministry of finance is in charge of the development and Reform Commission and other departments, plans to subsidize semiconductor lighting products, is expected to launch in the four quarter. In addition, the Ministry of science and technology, ten city million light is also expected to guide the implementation of the measures in the fourth quarter.

Because of this, LED industry has attracted a lot of capital into. However, according to expert analysis, the LED industry seems to be some of the hot situation and before the polysilicon and LCD panels similar. From the current construction and construction projects to start the project statistics, LED capacity at least overdraft market demand for the next 3-5 years.

In fact, the entire LED industry is currently in a crisis of structural excess. LED investment planning around two years before the introduction of competing and in the construction of production capacity has far exceeded the actual demand of the market, with investment overheating most serious LED sapphire substrate as an example, the construction projects in the production capacity of 101 million pieces per year, and Chinese current actual demand is only 6 million 850 thousand, less than the capacity of 1/10.

At the same time, the industry chain sapphire substrate, chip, packaging, the price of the application is also lower. According to statistics, this year 1-7 month, 2 inch sapphire substrate prices from the beginning up to $35 / piece, down to the current $13-15 / piece, the average fell by more than 50%; the average price of 25% LED chip LED package; the average price of 23%; the average price reached 21% LED. The price difference between different types of products vary greatly, some of the lamp string price drop even up to 75%.

Expect the government to pull

Overcapacity in the LED industry, it is said that the current LED companies have emerged polarization, or 10% of the year LED business failures. Some time ago and held in the "2011 Chinese low carbon economy industry development forum, LED lighting company PIPO Technology (Shenzhen) company chairman Deng Weiye said," the current LED lighting company 90% at a loss. "

Hold the same view as well as deputy director of research IC T HC our division of Zhang Benhou, he said, the vast majority of LED lighting company loss is an indisputable fact.

In the case of adverse demand stimulus, many companies put hope on the government.

According to the latest government procurement lighting market statistics, in August the ten successful lighting projects, the purchase amount of more than $4 million. Among them, the Xiamen Haicang Hong Kong Road and the future of the coastal LED night project to 6 million 520 thousand yuan of the purchase amount among the top ten successful projects.

Experts believe that the development of LED lighting industry is conducive to the development of low-carbon economy, promote energy-saving emission reduction. LED is called the fourth generation light source or green light, LED lighting with the advantages of energy-saving and environmental protection, by the state and government at all levels, all regions have introduced policies and measures to accelerate the development of LED lighting industry.

In July this year, there are media reports, Guangdong brewing government procurement of the first purchase of administrative measures to support the development of strategic emerging industries such as LED. According to the Ministry of Finance after the government issued "independent innovation products first purchase and order management measures", the government's first purchase, refers to the domestic enterprises or scientific research institutions in the production or development, will not be competitive in the market, but for the first time to meet the market demand of national economic development, representing the direction of advanced technology development, through government procurement by the purchaser or the government procurement act first.

A variety of favorable policies to enable enterprises to get large orders. In an optoelectronic investment in Wuhu as an example, according to the investment agreement, an optoelectronic not only to get more than 500 million yuan to buy equipment subsidies in Wuhu received 600 million yuan of orders for LED lights.

Government procurement is only a lever

However, relying solely on government procurement is clearly not the real way out of the LED industry. Zhang Benhou said: "as the policy to promote, many leading enterprises want to take a ride, have invested in the LED industry, hope from the rapid development of LED in a slice, but this is not realistic. "

Jiuzhou photoelectric Polytron Technologies Inc chairman Xie Yongjun also believes that the current LED lighting industry, the vast majority of projects are for government procurement, but with changes in national policy trends, the government procurement business model has become weak, companies must find new marketing mode to adapt to market changes.

There are experts, through government procurement support