Product Maintenance

LED industry too hasty? Slow down

All along, LED lighting and market demand become the object of the debate. However, the development of the industry did not go down with these arguments, today, China's LED industry production capacity and the market is still in an awkward situation. At the same time, entrepreneurs in order to quickly seize the market continues to expand, the industry has been forced on a long muddy road".

"Golden nine silver ten", LED general lighting hope in the real estate sales season this year, the success is not a good conclusion. But can be summed up is: if LED general lighting the spurt in real estate sales decoration season, means that the first half of this year through the fierce force distribution channels is still reasonable, also shows that the LED lighting is completely suitable for LED general lighting market; if not decoration in the real estate sales season is hot, it means the general LED lighting itself there are still problems, inevitably some distribution channels and act with undue haste.

In fact, the history of the development of LED industry in China is not long, China is now the world's largest production base of LED industry. China's LED industry is developing so fast, but not the end of the real market, more difficult for the future development of the industry left a lot of difficult. We have to reflect on the LED industry in China is really too hasty?

After the successful landing of the capital market in Shenzhen Lehman photoelectric, LED companies listed tide. Up to now, with the success of the LED project listed companies up to 25 LED, there are more than a hundred companies are listed sprint LED. Judging from the results of LED listed companies, the vast majority of companies did not meet the expected investment objectives. There are a few listed companies after listing a few months after the performance began to face.

In order to be listed and listed companies listed in China LED characteristics. The key issue is still, how many LED listed companies in China in the end, how many LED companies worth landing capital markets? I am afraid that the whole industry needs to think about the issue before the IPO floodgates.

Many companies in order to enter the capital market and continue to expand, bigger performance is reflected from the production capacity. Even in the first half of this year, LED terminal lighting market volume, but China's LED industry capacity utilization is still not high. In the chip, for example, the current Chinese mainland MOCVD machine is about 1000 units, capacity utilization rate of about 60%; even so, many chip companies in order to survive and layout market continues to expand production capacity. Under the pressure of the entire industry in the production capacity, inventory water level all the way up, had to rely on the price, spell the payment cycle to capture the chance of survival.

The future of China's LED industry will face more intense competition in the market. In the increasingly competitive situation, many companies began to seek new ideas for the development of mergers and acquisitions. This will lead to the emergence of large Industry Hengda, micro more micro phenomenon. There will be a large number of LED companies were eliminated, including LED chip companies.

Many enterprises due to the neglect of the market assessment, involved in the LED industry at the instigation of the local government, but due to the lack of clear market positioning and the loss of market competitiveness, which is facing a situation. If a number of chip companies are eliminated, there will be hundreds of units of MOCVD idle nobody took over, resulting in billions of losses. This is obviously due to the lack of rational development of the LED industry too fast.

Big but not strong, is another feature of the rapid development of China's LED industry. China's LED industry started late, subject to the constraints of patented technology, China's LED industry relies heavily on foreign patents, so that the whole industry into the homogenization of competition, price war quagmire. Many LED companies in order to survive, has been unable to focus on technological innovation, product development and other projects need time. Today, although the general conventional products can be made in China, but still rely on imports of high-end high-performance areas. How to enable enterprises to slow down, calm down to do a good job of the product, is the current urgent need to solve the problem of the entire LED industry.

The government plays an important role in the development of LED industry. Earlier, rumors of LED industry 60% of the profits concentrated in the LED chip industry, so China's LED chip production capacity was a geometric growth rate. Local governments are the LED chip project as a result of the project to grasp. However, the local governments to fuel the flames, but ignored the coordination between the industry, resulting in uneven distribution of China's LED industry chain status quo.

Any industry, in the early stages of development, the government often plays a key role. But in the market economy environment, the competition between enterprises can not get rid of the market rules. From the situation in the first half of this year, the company received subsidies, the government has slowed the intensity of efforts to encourage enterprises, the Shenzhen municipal government even abandoned the early development of the LED industry planning. This is China's LED industry is a belated good thing". Only after washing the market rules, in order to more accurately see the value of the enterprise.

These two years the rapid development of LED industry channel, LED general lighting products prices more than 30% annual rate of rapid decline in the first half of this year, the LED industry distribution channels on the surface showing a blowout situation. But in the first half of this year, the end of the market sales market has been questioned.

The traditional fluorescent lamp aspect in the market more than a decade, in the end there is no need to be eliminated immediately? LED the maturity of the product to the extent that people need? These are verified LED lighting products in the terminal market can

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