Nationstar heavily pound LED chip upstream of Guangdong seek breakthrough

Guangdong made the development plan of LED lighting industry in Shenzhen, the aspiring, Dongguan, Huizhou, Foshan and other places will LED development as a pillar industry. However, in the LED industry chain, Guangdong enterprises (and even Chinese enterprises) are mainly concentrated in the downstream packaging and application sectors, while in the upstream chip production, the right to speak almost all in the hands of foreign companies.

In order to obtain a breakthrough in the LED chip, including nationstar, Wright and other enterprises, Guangdong LED companies, have recently invested heavily into the LED chip manufacturing, LED in order to promote industrial upgrading, to avoid Guangdong become the low-end processing and assembly base LED.

China Star optoelectronics vertical integration industry chain

The day before, the listed company of nationstar announced that the country star power and other three shareholders jointly invested 600 million yuan to set up a joint venture to produce LED chip. Among them, the national star will invest 400 million yuan, accounting for a stake of 67%. China Star optoelectronics hopes to invest through this project, the formation of chips, packaging and lighting applications in the vertical integration of the whole industry chain.

As the LED package is a leading enterprise in the field of LED chip nationstar used to be purchased from the domestic and foreign manufacturers including epitaxial chip, high brightness, high power chip used in high-end products, all from Japan, Taiwan Chinese manufacturers purchase, core raw materials of heteronomy. Societe Generale Securities analyst Liu Liang pointed out that the investment is the star of the country to protect the company's high quality, high-power LED chip suppliers to take measures to deal with. On the one hand, it is helpful to reduce the production cost and guarantee the supply of high quality LED chip. On the other hand, it can form some constraints to the upstream chip suppliers and improve the bargaining power of the company.

State star photoelectric action, is the representative of the upper reaches of the Guangdong LED industry to expand. In addition, Guangdong, Guangdong, Foshan Elec-Tech Wright Saiwei technology and many other LED companies, also began to increase in the L E D chip in the field of investment. Among them, BDO Runda on its subsidiaries to increase 320 million yuan, increasing the development, production and sales of LED chip. In addition, at the beginning of December, the global LED chip giant CREE (CREE) a $50 million investment in Huizhou built chip production base also officially put into operation.

Guangdong LED industry upstream short board

Guangdong province will be listed as the three largest strategic emerging industries LED industry, the introduction of a series of supportive policies to promote. Ye Jingtu, deputy director of the Guangdong provincial science and Technology Department revealed that in 2009 the province's LED lighting industry growth rate of more than 25%, the output value of 39 billion yuan, more than 2600 companies, the industry continues to rank first in the country. This year, the total output value of LED industry is expected to reach 80 billion yuan, to achieve the goal of doubling the previous year. During 12th Five-Year, the provincial finance will come up with 2 billion or 5 annually to support the development of strategic emerging industries of 10 billion.

Despite the rapid expansion of the scale of LED industry, but the consultant senior researcher He Zaihua believes that the current Guangdong LED industry scale is composed of many amateurs into piling up, industrial development is still in the initial stage, the lack of core technology, lack of innovation, market competition, product quality is uneven in quality etc. confusion of these problems seriously hindered the development, LED industry.

From a nationwide perspective, LED Engineering Research Institute statistics show that in 2010 the scale of China's D industry L E about 125 billion 600 million yuan, of which, LED manufacturing, packaging and application value were 3 billion 600 million yuan, 27 billion yuan and 95 billion yuan. This set of data shows that China's LED industry in the upstream link is weak.

Shenzhen LED Industry Association President Wang Dianfu pointed out that Chinese enterprises mostly do not grasp the core technology of L E D, LED chip technology is mainly in the hands of CREE, PHILPS, OSRAM, and a few foreign companies arias.

Societe Generale Securities analyst Liu Liang believes that LED companies to enter the upstream chip, you can better carry out the vertical integration of the industrial chain, enhance the cost advantage and the ability to resist risks. Guangdong LED enterprises must break through the field of upstream chips, in order to keep the industry healthy development. If blindly in the downstream competition, it will inevitably become a low-end processing and assembly base.