LED industry myth rapid growth bubble?

The rapid growth of LED industry, the industry on the bubble sound rises gradually. Ministry data show that from 2011 to 1 in April, LED investment in the industry to maintain rapid growth, the amount of investment has more than 30 billion yuan, the growth rate of more than 90%, becoming a veritable investment hotspot.

Insiders said that the current investment in the LED industry is forming another peak. Compared with the previous investment peak, this round of investment in a larger scale, participants involved in professional investment institutions, other industry manufacturers, foreign capital and private capital, investment diversification.

Guangzhou City Economic and Trade Commission officials is admitted, growing too fast, many enterprises only cursory, in application, it is not yet in full swing, Guangzhou experimental LED Street sections, still can not fully open.

Industry chaos

In recent years, the rapid development of China's semiconductor lighting market, the influx of funds. Only in 2010, LED industry completed 166 billion 100 million yuan investment, an increase of 57.5%, an increase over the previous year increased by 54.7 percentage points.

Insiders believe that the multi capital to compete in the LED industry, is a fancy LED industry prospects. LED Institute of industry and Industry Institute of industry report predicted that in 2011 China's LED industry market size will reach 120 billion yuan, in 12th Five-Year, the LED industry is expected to achieve the goal of quadrupling.

However, in high speed at the same time, according to the investment adviser released "2010-2015 China semiconductor lighting (LED) industry investment analysis and prospect forecast report" shows that the domestic LED enterprises in the supply chain in the low-end market competition more fierce.

The "report" said that the domestic LED enterprise scale technology, backward, all aspects of the industry chain of high-end market are foreign enterprises occupy, domestic enterprises can only supply in the low-end market, which is the domestic market, small space, low profits.

2010 China's LED industry output value of about 120 billion yuan, of which the output value of the downstream application is, 20.8% for the LED package, only less than is contributed by the LED chip.

Companies around the market to enter the LED display has been everywhere, because of the fancy industry huge market prospects and higher gross margin. At present, the domestic leading packaging and application companies average gross margin at 40%-50%, net interest rate of 20%-30%.

From the upstream epitaxial wafer and chip manufacturing, to the middle of the package, and then to downstream applications, technical characteristics and capital characteristics vary greatly, the industry has gradually lowered barriers to entry. The upstream epitaxial wafer with a typical "double high" (high technology, high capital), the upstream chip also has the characteristics of high technical content, relatively capital intensive, midstream package in the technical content and capital investment low, capital investment and technology content and application products of the low.

At present, the application of LED Chinese manufacturers about 2500, to produce low-end products; LED packaging industry has 1200 companies, mostly small and medium-sized manufacturers; and the number of LED chip manufacturing, production and construction of about 70 of the home.

In addition, analysts believe that the domestic LED upstream enterprises are inclined to the vertical development of the industry, the front pulled very long, from the LED epitaxial wafer to LED package, has been applied to LED.

He pointed out that this operation is difficult to have industry partners, all competitors. And it is impossible to have enough LED professionals to expand production.

National strategy

At present, the domestic LED companies are rapidly expanding production capacity, raiders. A shares listed on the LED industry leading to the expansion of production capacity in Sanan optoelectronics Silan, then to "befuddles" Elec-Tech, LED industry investment boom almost swept the entire industry.

According to the 12th Five-Year plan, by 2015 China's LED chip self-sufficiency rate to reach 70%, packaging materials for the application of the market, but also to achieve self-sufficiency rate of 98% of the market by the end of.

In July this year, the country's "Five" science and technology planning in 12th Five-Year, a clear focus on strategic emerging industries and other industries in the next three years, focusing on energy conservation and environmental protection industry.

Among them, the localization of LED equipment and MOCVD is the focus of national support. The "planning" of LED development goals expressed as: 2015 to occupy the domestic semiconductor lighting more than 30% of general lighting market share, the output value is expected to reach 500 billion yuan, to promote China's semiconductor lighting industry to enter the world top three.

The next five years, will focus on the development of LED preparation, light source system integration, components and other key technologies to achieve large-scale MOCVD equipment and the localization of key supporting materials. It is understood that some domestic enterprises, has begun to test the water MOCVD domestic.

According to industry sources, although China white light-emitting diode (LED) fast industrial development, but the key equipment and materials rely heavily on imports, such as metal organic chemical vapor deposition (MOCVD), plasma etching machine and other high technology equipment, domestic production line all rely on imports.

In the upstream epitaxial chip link, LED chip manufacturers with the continued expansion of production capacity and gradually released, the chip production capacity in short supply situation will be eased, the profit space is relatively considerable, or many LED companies want to get involved in the field and extension, the short-term market is still not the case of excess capacity.

However, due to the current quality of chips and foreign manufacturers have a certain gap, the yield of the product is in urgent need of improvement, thereby reducing the cost of forming competitiveness, it is the main breakthrough point. As China's LED chip companies have increased too much, shortage of technical personnel has become a big problem.

Packaging market competition is based on the scale of