Mainland LED companies alone is not conducive to the development of the industry as a whole

Recently, the rapid rise of China's light emitting diode (LED) enterprises, although the amount of investment is amazing, but also behind the attention of the people. More than 3000 mainland LED companies are mostly downstream of the industrial chain, and in the technical patent is not as good as foreign manufacturers. Today, in the face of external intervention, local companies are still alone, fear of a negative impact in the future.

On the other hand, the mainland's LED industry base has been up to 13, originally hidden in the bottom of the problem has gradually emerged, such as the homogenization of industrial structure, the core technical defects.

The day before at the 2011 Chinese international LED Industrial Technology Exhibition and forum, experts said, LED industry and other new energy industry development is exactly the same, the rapid rise, but also with overcapacity worries.

Mainland investment in the LED industry is staggering, Shanghai semiconductor lighting engineering and technology research center analysis report pointed out that in 2010 the size of the mainland LED industry is sufficient to 120 billion yuan. The Institute of Engineering LED industry statistics also said that in 2010 the mainland LED industry contracted investment of up to 217 billion 800 million yuan, and by the end of 2010, the new project has completed an investment amount of RMB 34 billion 300 million yuan.

However, behind the growth of LED industry investment, there are many disadvantages that have not been noticed before. More than 3000 LED enterprises in the mainland, in the downstream packaging or industrial chain, but the substrate material technology and wafer production equipment industry, the key core technology, due to lack of background and other reasons, the patent technology was a long-term monopoly of foreign manufacturers, can only rely on imports, have lost the price advantage.

But the key is in the face of foreign manufacturers in an unbroken line offensive, the local enterprises, not to cooperate, but choose to go it alone. Part of the local government to promote local business transformation, introduced a number of supporting policies, such as the procurement of equipment subsidies, tax incentives, local demonstration projects into local enterprises preferred. Although the intention of the local government is good, but in disguise to prevent cross regional integration of other regions, to develop the market.

If the LED industry wants to become a mature and sound industry, then vertical integration across the region should be a necessary process. At present, the mainland LED companies scattered around, fragmented situation, fear of the development of the overall industry to help limited.