The current phase of the LED industry in transition to seize the opportunity in winter

In 2012, LED industry is facing unprecedented severe test. On the one hand is the serious consequences of overheating investment: from 2009 to 2010, the LED industry investment has a large number of follow suit and irrational phenomenon. In particular, LED upstream, nearly two years MOCVD installed capacity, the amount of production compared to 2008 growth of more than 10 times. Asymmetric growth in production capacity led to a sharp decline in the level of industry profits, and so far can not see the trend of sliding. On the other hand, under the pressure of the market, immature capital market fueled, creating a group of the overall quality of listed companies can hardly speak LED.

In the cold winter, we must see the opportunity. And the first two years in the craze to have cold thinking different, in the current context, whether it is business or government departments, should be more to boost passion and enthusiasm. Under the premise of a comprehensive analysis, we can strengthen confidence in the current stage of the development of the LED industry is a transition rather than a turning point.

1 industry growth pattern remains unchanged, the terminal driver is still strong. The steady growth trend of LED industry terminal application has not changed, but after a brief stagnation in 2010 ~ 2011, 2011 to the present, with the rapid growth of indoor LED lighting as the representative of the whole application market is showing a trend of accelerated growth. In this sense, we are facing the grim situation, mainly due to overheating investment, rather than the decline in market demand caused by. In this context, although the individual as a test of the enterprise is very large, but the overall development of the industry is healthy. In the current situation of intense competition, the cruel environment has also improved the viability of enterprises and the cost of LED products.

2 under the pressure of the market, Chinese enterprises to find a breakthrough in low-power chips, low-power lighting market. Since 2003, all levels of organizations, associations, associations are basically agree with the LED lighting development roadmap should be "decoration - Special - - Outdoor - - indoor business - - general". Over the past 5 years, both ends in the road map, the basic pattern is not what changes, decorative lighting and special lighting market trend is stable, growth space is limited, and the cost of general lighting is immature, so in recent years, the development of LED lighting industry focus on actual outdoor lighting and indoor lighting business. From last year to now, whether it is the actual market development, or the relevant departments of the summary and outlook, the development of the order between the two has been quietly transposition. This is a change in the application of the market on the surface, but the essence of it, or LED lighting from high power to low power technology roadmap.

From the current situation, LED indoor lighting products energy efficiency, product stability, market size and growth expectations have been beyond the outdoor lighting application of high power technology, it should be said that this is the result of the integrated development of market and technology. We can rejoice in the domestic enterprises in the upstream market under pressure to find a breakthrough: small power epitaxy and chip technology currently used in the lighting field, has made quite a number of products in the price really more than Europe and Japan and South Korea, the domestic LED is no longer synonymous with low quality and low price, but the real in technology and industrialization level have a more fully competitive advantage.

3 policy guidance more rational, more sustainable. Governments at all levels, institutions to support the development of the LED industry, but also from the investment support to the main market to promote the use of support. The State Council released the latest LED energy saving lighting products subsidy model, Guangdong issued directly from the provincial level to pay electricity for additional funds to support the application of stable sources to promote, to the local government gradually MOCVD production line investment subsidy mode to support enterprises in the region of the regional new energy-saving LED lighting market the first to occupy, are used to promote the end of evidence has been replaced by the investment side drive has become the main way of supporting the development of LED industry, this is a important symbol of industry development during the transition period, also means that on the eve of the LED lighting market to mass market applications.