LED overcapacity, in fact, the development of industrial chain imbalances

Through the investment of a few years ago after the fermentation of excess, rush on like a swarm of hornets, shuffling has become a hot word now the domestic LED industry.

2012 domestic LED industry output value is expected to increase from 154 billion yuan in 2011 to $205 billion 900 million. However, due to overcapacity, some aspects of the imbalance of industrial chain, product prices fell sharply, as the price of the package fell into 4, chip prices fell 3, LED supporting industry in fact has entered the era of meager profit or no profit. In the case of increased competition in the market, a number of technical, weak market capacity of small and medium enterprises will be eliminated, restructuring.

Outside of the LED overcapacity questioned continues. In this context, Chongqing LED related enterprises have not been spared. It is understood that, due to the failure of the majority of enterprises to master the core technology, homogenization of intense competition, high cost, profit margins are compressed.

Fork in the intersection of the Chongqing LED industry, will go to where?

"Matthew effect" under overcapacity"

In mid December last year, held in Shenzhen, the second G20-LED summit, Liu Xiaoda grievances: the second half of the 'triangle debt' too much, the company is very tight liquidity. "

Liu Xiao is the general manager of the United States Optoelectronics (Shenzhen) Co., Ltd., he operated the company, is one of the main suppliers of fluorescent powder industry LED. The G20-LED summit, is the global LED industry segments of the market leading companies in the form of the form of membership invitation to form the forum, the forum released information is regarded as the LED industry weathervane".

Liu Xiao said, triangular debt is like a flower drum pass - customers owe LED application product business money, the application of the enterprise supporting the enterprise's money, supporting enterprises can only owe the money upstream suppliers.

Behind the surge in accounts receivable, LED industry overcapacity in all aspects of competition.

Zhang Xiaofei, Dean of Engineering LED Industry Research Institute believes that in recent years the number of domestic LED project of many companies, but in the civilian market to be activated, the commercial market has just started on the occasion, the LED product market order mostly depends on the government order and policy support. Large enterprises can rely on technology, resources and other advantages to get more government orders, and the lack of technology, brand of small and medium enterprises to get government orders is relatively difficult. In this case, the polarization of the LED industry, Matthew effect increasingly obvious.

Local LED enterprise is also a fire and ice two days"

This Matthew effect in the city of Chongqing has been revealed in the LED industry.

During this year's new year's day, is located in Beibei, the home of the group's LED Industrial Park, a busy. Four Photoelectric Technology Co. Ltd. to make 66 million high-quality beads, for the production of spring the snake required LED display stage.

Most of the domestic counterparts in the winter on the occasion, the quadruple photoelectric is a good landscape". Four photoelectric said that this is because the technology has come to the forefront of the world, the company has a core competitiveness. "

Since the acquisition of Honeywell in 2008 in Canada's Sapphire factory, the four did not immediately set foot in the LED lighting business, but focus on product development and independent innovation. With excellent technical products, quadruple Optoelectronics in recent years in sapphire substrate, lighting applications and packaging and other three key areas have achieved good performance. The official said that last year the company's LED output value of nearly 600 million yuan, this year's output value is expected to increase more than 30%.

Compared with the four photoelectric, the city's other LED companies are not very good situation.

More than 8 years ago in the early stage of the high-tech zone, LED products were in short supply, but this situation did not last long. Chongqing rui'ao technology limited company manager Jiang Ping admitted that due to the homogenization of competition and other reasons, the profit of the LED industry has been greatly reduced compared to the early years.

Chongqing LED lighting R & D and Industry Alliance, a source said, LED industry involves raw materials, production, packaging and other aspects, due to the lower threshold of the lower reaches of the industry, in recent years there are a large number of companies get together to enter. Currently, the city's LED related enterprises, more than 80% concentrated in the packaging, application and other downstream links, product homogeneity is very serious.

Lack of product core technology, is another big reason for these enterprises difficult. It is understood that the entire LED industry chain is basically in the hands of foreign enterprises, the downstream enterprises to import the main chip. This part of the purchase price of chips and other enterprises do not have the right to speak, high cost. In the homogenization of competition caused by circumstances to pile up in excess of requirement, digest inventory, they can only be through the "price war" way to fight our way out, shrinking profits can hardly be avoided.

Overcapacity is actually an imbalance in the development of the industrial chain!

LED industry overcapacity?

Chongqing LED lighting industry alliance research and Professor Gao Xiaoxia believes that the current Chongqing LED industry overcapacity problem is not, but in the industrial chain downstream enterprises, including the chip, the upstream business is too small, between the various sectors of the industry chain development is not balanced.

Huang Bingliu, general manager of Chongqing light lighting equipment Co., Ltd. also admitted that there are few companies involved in the substrate, epitaxial film, chips and other midstream links, is the biggest weakness of the local LED industry development.

For the future direction of the industry, an interview with the number of people in the industry generally believe that government policy support will continue to be the key to promote the development of LED industry. In fact, the policy is also good for LED companies continue to introduce.

In 2011, China announced the incandescent exit plan. Since October last year, the country has banned the import and sale of 100 watts and more than ordinary incandescent lamp, the State Council also arranged