LED industry: structural excess corporate cost pressures

Affected by the economic situation, enterprises and so on, domestic lighting industry is an eventful year, NVC, FSL, the battle for control of illegal disclosure cases have been pushed to the industry in the teeth of the storm. Reporters from the ninth session of Chinese international semiconductor lighting exhibition was informed that with artificial and raw materials costs rise, coupled with the recent years the domestic lighting industry, especially the LED industry structural investment overcapacity, facing no small cost pressures, the industry is still in the winter condition.

National semiconductor lighting engineering research and Industry Alliance Secretary General Wu Ling said, in recent years a wave of enterprises to enter the LED industry did not make money and even collapse is not surprising, since 2010 this industry is the excess of investment, structural surplus. Industry is in winter, is expected in 2013 will pick up.

Li Xinghua, director of the Guangdong provincial science and Technology Department, said Guangdong Province, Huizhou, Dongguan, Jiangmen, South China Sea, Zengcheng and other 5 provincial LED industrial base total investment of more than 50 billion yuan. Among them, Huizhou CREE, MICROTEK LED chip, uer technology project, Guangzhou Zengcheng LED epitaxial chip project and a number of heavyweight industrial investment projects with a total investment of more than 20 billion yuan.

At the same time, he pointed out that the industry is still facing market confusion, LED does not own the brand, reputation is not good, low consumer acceptance.

Only strictly control product quality, promote business model innovation, to pull the consumer market, and vigorously promote industrial concentration, technological innovation and regional brand, in order to achieve rapid development of LED industry. Li Xinghua believes that in 2011 the size of the output value of Guangdong LED industry reached 151 billion 500 million yuan, the total output value is expected to exceed $200 billion this year.

The LED industry is an international training Institutional Firms responsible person said that the current part of the country as the LED lamp 40 watt incandescent lamp replacement has been lower than the limit of $10, on the one hand, can promote the LED lighting market growth, but on the other hand to the enterprise put forward problem is how to reduce the manufacturing cost of LED.

Data show that last year exports of the 1.2 meter LED lamp price of about 180 yuan, this year's price is only 100 yuan, the gross profit will be maintained at about 20%-30%. A Shenzhen LED export manager, said the core product technology and sales capabilities do not have the advantage of SMEs, competition and survival pressure is very large, industry consolidation accelerated.

Wu Ling also believes that the domestic LED industry is currently in the winter before the thaw, LED companies are no longer simply the pursuit of the number of development, but the pursuit of quality development. The industry is expected to pick up next year.