According to recently released data, the total output value of China's LED industry reached 345 billion yuan in 2014, a year-on-year increase of 31%. Among them, the output value of LED upstream epitaxial chips, midstream packaging, and downstream applications increased by 43%, 20%, and 32% respectively year-on-year.
Indoor lighting is the main engine for the rapid development of the LED application industry. Data show that in 2014, the indoor lighting industry continued to maintain the growth trend of 2013. The annual output value exceeded 100 billion yuan, with a year-on-year growth rate of more than 70%. Indoor lighting applications led the development of the entire LED application industry.
While the LED industry is growing rapidly, people have to face many problems that constrain the development of the industry. Not long ago, there were rumors that the boss of Guangzhou Juliang Optoelectronics defaulted on more than 200 million in payments to suppliers and "ran away", which has cast a shadow on the industry.
According to statistics, since September 2014 alone, several LED bosses such as Sichuan Yuanli Optoelectronics, Dongguan Yongxing Electronics, Zhongshan Hualiang Lighting, and Fengguan Legend have escaped, which has aroused social concern.
A major impact of the frequent incidents of runaways on the industry is the deterioration of the financing environment. It will become more difficult for LED companies to obtain bank loans or social financing.
For packaging companies in the midstream, 2015 will be a period of fierce competition. People in the LED industry said that small and medium-sized packaging companies will face more brutal competition next year.
"More than 100 packaging companies have closed down this year, and about 300 may go bankrupt next year." The above-mentioned person said, "Large-scale packaging companies that expanded production in the past few years are fully releasing their production capacity this year. However, small companies have limited technology and it is difficult to launch new products with higher gross profits in a timely manner. The dilemma of increasing revenue without increasing profits has further deepened for small businesses. Once large-scale downstream companies go bankrupt, they will be subject to associated risks. "
When it comes to downstream application fields, industry insiders say that indoor lighting applications will still be in a rapid development stage, and companies will not experience large-scale bankruptcies. However, due to fierce competition in the entire downstream and financial problems, there will still be many companies that will go bankrupt in other application fields in the future.
"The threshold for the downstream lighting industry is low. Currently, China does not have corresponding industry standards and entry thresholds, and is in a state of disorderly competition." BYD LED Sales Director Xiao Zhiyong analyzed.
ANNA