Need Chinese, LED market clearing "fish in troubled waters" phenomenon

As a new generation of the world's most high-profile light source, LED because of its high brightness, low heat, long life, non-toxic, recyclable and other advantages, known as the most promising prospects for the development of green lighting in twenty-first Century. In recent years, the global LED market demand is also expanding, the market outlook was very good.

Big price war

However, it is also the potential of this market to promote, so that many companies but to join the LED industry, to snatch the cake. Reporters learned that in 2011, only the size of the output value of Guangdong LED industry has reached 151 billion 500 million yuan, two consecutive years to achieve double growth. Behind the prosperity of the market seems to boom, but buried the foreshadowing of overcapacity.

Due to the European debt crisis, from the beginning of the second half of last year, the global LED market is facing weak demand, coupled with rising raw material costs, in the fierce market competition, many LED companies have to go bankrupt. Some enterprises in order to survive, at the expense of product quality at the expense of blindly reduce prices, price war. Some enterprises in order to lower the amount of walking, using a very poor quality of raw materials, a serious impact on the quality of the LED, and all of this results in the final exacerbated the disorderly competition in the LED market. Recently, the Bureau of quality supervision, inspection and administration of Industrial and Commercial Bureau was performed on the quality checks on the country's LED lighting products, energy-saving lamps, road lighting, fire emergency lighting and electric light source, random eye popping results: LED lighting products pass rate is only 51%.

Next year the industry will pick up

Facing the present situation of LED industry overcapacity, rampant price competition, the industry pointed out that the LED industry on the development trend, LED lighting will lock the new, high quality, can not see the point of the enterprise, to be eliminated sooner or later. Shanghai Special Gas Co., Ltd., said Tang Qishen, a senior engineer, now the LED market is not in the doldrums, the demand has been there, the key is that many domestic enterprises did not seize the focus, did not grasp the market demand. Many enterprises headache production costs, can be solved by technical standards and operational methods to improve.

But insiders pointed out that want to master the core technology is not easy. As key equipment of LED products is MOCVD, it can only complete through the key technology, but the status quo is this equipment mainly consists of several large companies in the United States and Germany, "high-end technology to enter, foreign transport came is a relatively backward equipment, which is the industry's major problems. Ge Gangru, deputy general manager of Beijing Confederation of science and Technology Co., ltd..

But there are also companies optimistic, as early as the end of 2011, chairman Wang Donglei said the next 24 months, the price of LED lighting products and energy-saving lamps will produce competition, market demand will also usher in the outbreak. Recently, Elec-Tech responsible for investor relations in the face of the media questioned was confident: "the media questioned early entirely from the outside world for the LED industry understanding is not deep enough, the current domestic LED industry in the production and technology are close to the world advanced level, not worth looking forward to. The official said, the company has been stepping up the construction of the whole industry chain business model, business activities from the top of the epitaxial chip extended to the sales terminal.

The industry said that the mainland LED industry is currently in the winter before the thaw, LED companies are no longer simply the pursuit of the number of development, but the pursuit of quality development, is expected next year the industry will pick up.