LED upstream industry overcapacity or follow the footsteps of PV?

In recent years, LED industry has maintained rapid growth. But last year some business failures, known as the "LED city" of the Shenzhen at the beginning of this year also abolished the LED industrial development planning, especially in the photovoltaic industry belong to the strategic emerging industry suffered setbacks, caused the market for LED industry concerns. The author and colleagues of the Pearl River Delta, Yangtze River Delta, the relevant enterprises to conduct extensive research, the current LED industry, the main problem is that the upstream overcapacity, the overall is still good. Need to learn the lessons of the photovoltaic industry in the future, to improve support, efforts to expand the consumer market, and promote the healthy development of the industry.

For the current development of LED industry, we have three basic judgments: the upper field structural surplus, non overall surplus, downstream market segments will remain strong growth; compared with about 90% of the photovoltaic industry dependent on exports, LED industry a lot of security, more than 70% of its products sold; as government subsidies to enterprises also exist in the LED industry but, overall, government subsidies for the consumer side to develop the market, and in the LED industry for many small and medium enterprises, basically there is no "enterprise government kidnapping".

At present, China's LED industry has entered a period of consolidation, the future will have more enterprises are eliminated, which is the industry must undergo a mature process, does not affect the overall development. At the same time optimistic, the three worries can not be ignored.

The first is the ability of technological innovation is weak, the value of the chip as the representative of the high-end technology products are still mainly in the hands of foreign companies. For example, China's existing more than and 980 MOCVD machines are basically imported from the middle and lower reaches of the key equipment is also based on imports, to the growth of the industry hidden dangers.

Two is the lack of leading enterprises to lead. A large number of small and medium enterprises occupy the low-end market, the price war, product quality worrying. China's large scale LED enterprises operating income of only a few billion yuan, and the international giant annual sales of billions of dollars in the scale of a far cry.

Three, there is still a direct subsidy to production enterprises, policy orientation to be standardized. At present, government introduced a number of policies, but the intention is to support technological innovation subsidies, but some enterprises to expand production capacity, resulting in unfair competition and capacity sprawl, the need for policy adjustment. Part of the local government subsidies for photovoltaic enterprises caused by the rapid expansion of production capacity, trade friction is serious, is a lesson.

From global competition, although the United States, Japan, EU, South Korea still occupy the high-end industrial chain, but with some of the core patents expire, and constantly improve the level of domestic technology, as long as the timely improvement of policy, China's LED industry will be realized by the catch to lead across. The author suggests that the policy can be improved from the following aspects.

Cancel production subsidies, expand the scope of government procurement and demonstration projects and efforts to larger scale, more competitive domestic market to stimulate industrial development. At present, Guangdong province has a large area of LED lighting on the street lamp, and achieved obvious energy-saving effect. In schools, hospitals and other public utilities, can also be widely used LE D lighting, and the use of consumer subsidies, etc., to open the ordinary user market.

The future of China's enterprises will be more involved in international competition, need to plan ahead, LED industrial policy system combing the government at all levels, and the W T O modified rules do not conform to the provisions, to avoid the use of "the government encourages" government support "without substance and easy to a handle words, regulate the local government to enterprises, electricity, water and other support. To avoid the occurrence of photovoltaic double reverse confrontation in front of said no government support, the latter said the government to support the embarrassing situation.

Also need to develop LED product certification standards in advance, when the government procurement, the establishment of "benchmarking system", to guide product quality improvement; coordination and overall development planning, to avoid low-level redundant construction. In addition, to strengthen the construction of industrial technology service intermediary platform, the establishment of inter enterprise collaborative innovation mechanism to promote the core and common technology breakthroughs.