Under the aura of the domestic dilemma of LED and foreign advantages

The LED industry continued to be pursued by investment institutions in 2011, after a surge in investment last year, but the excessive expansion of investment has led to a bubble in the industry as a whole.

June 2011, Jiangsu Shun lighting won a $10 million investment in Jinsha River, so the scale of investment is not uncommon, in fact, the industry has been on the right side of the LED chain has been booming for several years. Only the first four months of 2011, the amount of investment has exceeded 30 billion yuan, according to a report released by the Institute of Engineering LED industry (GLII), in 2011 China's LED market size will reach $120 billion.

From the beginning of 2011, China's full implementation of energy-saving emission reduction, LED products will gradually replace the traditional lighting products. "Frost & Sullivan, director of industrial automation and electronics consulting, Zhao Xiaoma is very optimistic about the LED industry," but it takes a long process, not overnight. Investment institutions on the pursuit of LED companies, making the entire industry to expand the scale of investment, but also produced a bubble. "

"Due to the support of national policy, the future prospects of the new energy sector, there is no intervention in the industry before the investment institutions began to participate in the market size is also expanding. However, the return cycle of new energy is longer than the Internet, which is the characteristics of the LED industry. Venture capital founder, said Dong dong.

Domestic dilemma

Although the domestic LED investment boom unabated, but companies get together in the middle and lower reaches of the industrial chain, is still not out of the pure manufacturing model. Investment adviser senior researcher He Zaihua said. In this regard, Zhao Xiaoma also has the same view, most of the companies Chinese and LED industry chain in the upstream areas of no, basically concentrated in the packaging and application of the industry chain downstream, and this part of the profit is very low, only about 30% of the profits. It is reported that the domestic LED enterprise is about more than 4 thousand, but in the upstream industry is not much, but the whole industry OEM is overweight, so more than 90% enterprises only 30% of the profits in market cruel fight.

He Zaihua believes Chinese LED enterprises occupy the absolute superiority in quantity, but in the high-end technology in the core technology and heteronomy, so high profits are foreign manufacturers to grasp the situation survival difficult, the main difference lies in the key technology to master, with the degree of the patent, the product performance and quality gap, technology innovation and brand building.

LED companies in China, there are more than 1 thousand and 500 companies engaged in the packaging field, divided into sales by the camp of three. First, the annual sales of more than 100 million yuan in the enterprise has more than and 40, such as Lehman photoelectric (300162, stock it), etc.. Second, the annual sales of 10 million to $100 million between enterprises have 400. Finally, basically are the annual sales of 10 million yuan in the following enterprises. While China's 8 listed companies in Taiwan packaging average sales of $1 billion.

However, domestic companies have specialized in the field of chips and other fields, but also the industry is moving from the middle and lower reaches of the industry chain. "Zhao Xiao said. There are also some bright spots in the domestic enterprises, such as crystal photoelectric. As a high-tech enterprise specializing in the production of LED epitaxial material and chip, the technology of crystal photoelectric can be supported by the Research Institute of Nanchang University.

"Crystal silicon substrate LED technology, with independent intellectual property rights, has a very good technical team and management team, for the global market to provide lower cost, better performance of semiconductor lighting bulbs. For LED product manufacturers, reducing the cost per lumen (lumen), improve the efficiency of LED is very important thing. "

Crystal energy photovoltaic executive vice president Lu Bo said. Latticepower won the Jinsha River venture capital at the end of last year, the second round of financing, the financing, latticepower expansion of production capacity, in the domestic market share of more than 10% chips, and by the United States Massachusetts Institute of Technology "Technology Review" magazine as "the most innovative company in 2011 one of the top 50", but also the world's only one in the LED company.

Nationstar (002449, shares) is the only one in the LED package as the main business of listed companies, mainly engaged in LED devices and components research and development, production and sales, with 30 years of accumulated technology, in the leading position in the field of LED package. Since last July, after the listing, the state of the chain will be extended to the top of the downstream industry chain, vertical integration. In the upstream, and its joint venture with SemiLeds Asahi Asahi optoelectronics, specializing in LED epitaxy, chip production. In the downstream areas, to extend the application area for municipal engineering, lighting engineering and other projects to provide lighting applications.

At present, enter the LED industry funds have many different investment entities, including venture investment institutions and other industry manufacturers, foreign capital and private capital, investment scale is larger than before, while excessive investment generated by the bubble is also looming.

With a large number of foreign enterprises to enter the market China, while they were holding the patent technology of the killer, this is a fatal blow to most of the enterprises China, in the face of strong opponents, domestic enterprises need to improve their competitive ability.

Foreign advantage

Now, there are Chinese enterprises in Taiwan packaging and packaging enterprises in Japan moved to mainland China, and some of the business model, especially the capital operation is worth learning from. Internationally, there is a vertical management model, across the semiconductor, packaging, lighting and other industries, but the level of business management requirements are very high, only a few strong European and American strength