LED lighting investment to be rational investment opportunities in

In just a few years, the link China LED industry with industry and non industry investors, only in the LED lighting application, in recent years appeared nearly more than 4 thousand enterprises. "Squandering charming eyes, can not Asakusa horseshoe" to describe the industry situation is quite appropriate, a lively participant in the market, one is the unbalanced development of the industrial chain. This sparkling industry, what are the investment opportunities in the previous few years, the photovoltaic industry, wind energy investment retreat, can give this wave of LED market participants left what enlightenment?

Surging LED lighting (LED lighting) market, China's manufacturing sector may be a new feast. Rational PE should avoid irrational thinking of investing in solar energy industry in this area, starting from the LED application end manufacturers, take a bottom-up investment path.

Sequoia Capital investment has been listed as a dry light, this famous PE companies in just two years by investing in the LED industry has created a new miracle - the current market value, its investment value of 20 times. LED, this emerging lighting technology not only illuminates our lives, but also began to illuminate the PE investment community.

Industry revenue model: upstream decision downstream

Semiconductor lighting has been recognized as one of the most promising technologies in the twenty-first Century. It opened the third revolution of the human society, which contains a huge economic benefits. In the past ten years, the global LED market size of the average annual growth rate of more than 20%; high brightness LED market to grow more rapidly, with an average annual growth rate of 1995-2005 annual rate of 46%, the market size in 2008 reached $5 billion 100 million, accounting for the proportion of LED market increased from 40% in 2001 to 80% in 2008. The conservative estimate of the market in 2012 the scale is expected to reach $11 billion 400 million.

In this is full of highlights and value of the industrial chain, the upstream enterprises took more than 70% of the profits, which is a capital intensive, high technology content, high profit margins. While the upper reaches of the core technology of concentrated in Japan Nichia (Nichia) and Corey (Cree), OSRAM (Osram) as the hands of the few overseas giants, belongs to the typical oligopoly Management (schedule). In the field of epitaxial chips and chips, the United States and Japanese companies are also in a monopoly advantage.

The size of the entire LED industry, depending on the direction of research and development of upstream manufacturers, production capacity. At present there are two main factors restricting the development of the LED industry: technology, such as the efficiency of light conversion rate is low, the industry standard has not issued the lumen speed and light; two is relative to the application terminal market is hot, have the core technology of the production capacity of manufacturers. The semiconductor industry "Moore's law" in the LED industry has not yet appeared, in 2010, in the upper reaches of the mainstream manufacturers yield spread, chip prices did not fall but rise, downstream manufacturers are even downtime await urgently necessary condition. At present, chip development and grain, in the middle reaches of the package and downstream applications, has had China enterprises involved, but the domestic chip manufacturers in the low-end, low power field, including low power chip field, Sanan optoelectronics changelight enterprises etc.. Limited to technology, production capacity and other reasons, the current domestic manufacturers accounted for less than 10% of the domestic market supply, has not yet entered the ranks of mainstream suppliers.

Most of the Chinese LED manufacturers, only in the end of the industrial chain packaging applications, competing for less than 40% of the remaining profits, this reality is similar to the previous years of solar polysilicon industry. At present, Chinese has more than 4000 enterprises in the downstream of LED, they are mainly concentrated in manufacturing, materials processing and design industry, is characterized by the small scale of investment, the industry set up fast and the unit output value is not high, which belongs to the traditional processing industry, but its biggest advantage is close to the market, sensitive reaction, if to seize the market boom, there are may grow out of large enterprises. In particular, the rapid development of LED application market in recent years, LED backlight, display, light source market are growing exponentially. Market demand the development of production, to ensure the LED lighting manufacturers this year will harvest a lot of orders for domestic production quality, FSL, NVC in the rapid transition to this, there are large-scale enterprises in other industries in the market.

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