LED industry overheating is a good thing or a bad thing?

Shenzhen LED industry association data show that this year, the closure of the LED production enterprises amounted to more than 80 people in the industry is expected next year, the development of the industry is still facing greater pressure.

Affected by the impact of the external economic downturn, known as China's LED city of Shenzhen began to appear a LED vendor closures. Reporters recently learned from the Shenzhen LED Industry Association, according to the Association statistics, this year, the collapse of the LED manufacturing enterprises in Shenzhen has reached more than 80.

In Shenzhen, the more well-known junduoli enterprise bankruptcy before the industry little known bright optoelectronics also unfortunately fall into the debt crisis in the industry caused by the collapse of LED of anxiety.

At present many data show that LED industry overheating, two years ago, 1 watt LED chip price is about $3, but now has dropped to less than $1, some of the mainland and Taiwan produce cheaper chips, even a grain of 3 yuan. Sapphire substrate prices (calculated in 2 inches) in the third quarter will be significantly lower prices. With the factory of Korea STC production capacity expanded significantly, the third quarter price is less than $20, according to statistics, the sapphire substrate of 2 inches in the first quarter of this year the average price at 30 U.S. dollars / piece, but by September, the price has dropped to around $10, a decline of more than 60%.

This is the time to invest in a recent sapphire case, but also so far involved in sixth LED sapphire substrate business of domestic listed companies. In the past year, such an investment case in almost every province turns staged.

Recently, the relevant statistical data show that in 2011 1 to July, China's LED industry plans to add a total investment reached 125 billion 618 million yuan, of which more than 40% of the funds to invest in a number of industrial sectors, and even the whole industry chain investment. More noteworthy is that non LED enterprises entered the LED industry of investment has become an important part of LED industry investment, such projects accounted for the proportion of the investment projects of more than 45%, more than 65% of the amount of total investment amount.

Allegedly, Guizhou and Guiyang municipal government has invested 100 million yuan as a seed fund for the development of the LED industry, and will be announced within a month to build the LED industry development plan in Guiyang.

Previously, LED industry another giant Sanan Optoelectronics (600703.SH) announced that it will invest 2 billion 500 million yuan in Fujian Quanzhou (Lake) Photoelectric Industrial Park to build an annual production of 12 million sapphire substrate material factory, the total construction period of 3 years, and strive to 2 years to complete.

The actual application of LED is not particularly bad, there are a lot of good application cases in World Expo: World Expo has become the focus of LED technology demonstration area, creating a new era of LED applications. The Expo Axis as an example, the whole building a total of more than 80 thousand LED lamps are concentrated, no deviation control, the whole building like a transparent giant flower, a few hundred meters long membrane and Sun Valley connected into a great dynamic wave, light and color in the overall level of membrane gradient, produce beautiful and vivid artistic lighting landscape.

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