When will the LED industry be able to live on its own?

Policies are not a long-term solution. Marketization is the only way for companies to become bigger and stronger. For domestic LED companies, whether they can smoothly get rid of their dependence on policies has become the biggest test.

Today's LED industry is obviously somewhat confusing. On the one hand, LED companies continue to fail. After the Shenzhen Everlight and Xiongji events in Zhongshan, Ningbo Global Optical Electrolytic Powder was recently exposed, and Shenzhen Shifang Photoelectric was closed down; on the other side, the government The policy is to boost the LED industry.

Following the previous series of LED industry policies, the State Council issued the "Opinions on Accelerating the Development of Energy-saving and Environmental Protection Industries" on August 11th, stating clearly that it is necessary to promote the industrialization of semiconductor lighting, integrate existing resources, and increase industrial concentration. Cultivate 10-15 leading enterprises that possess core technologies, own intellectual property rights and well-known brands, build a number of industrial agglomerations with complete industrial chains, implement key local production equipment and important raw materials, and accelerate the development of core materials, equipment, and key technologies. R&D focuses on solving major technical issues such as heat dissipation, modularization, and standardization.

The state will further promote the semiconductor lighting industry will undoubtedly promote the rapid development of China's entire LED industry and technological progress. However, there are also industry insiders who point out that government policies have contributed to the support of the industry.

Needless to say, LED lighting replaces traditional lighting as a general trend. National policies are conducive to the popularity of LED lighting, but the popularity should not only consider the development trend, but also should follow the law of development. At present, the development of China's LED industry is not mature enough, especially civil lighting has not started effectively, and the popularity of LED lighting will take some time. Zhu Ming, Lighting Manager of Southern Branch of Shenzhen Kerui Optoelectronics Development Co., Ltd. Shenzhen Branch, stated that at present, the LED lighting industry is still in the seller's market, and the market is mainly concentrated in government projects. As the lowest civilian market, it has not started.

Policies are not a long-term solution. Marketization is the only way for companies to become bigger and stronger. For domestic LED companies, whether they can smoothly get rid of their dependence on policies has become the biggest test. Reviewing the development of LED industry in the past two years, support policies have been issued successively from the central government to local governments. The government subsidy heat has given rise to the domestic investment in LED chips, LED packaging and application companies have also rapidly increased, resulting in a serious excess capacity in the entire industry chain.

The feedback from the market shows that at present, LED technology is not mature and there is no unified national standard, let alone international standards. Throughout the LED industry, this industrial miracle of relying on government subsidies has achieved an astonishing growth rate in the early stages. But it also led to the LED industry's ability to self-reliance decreased. Let some LED companies form an erroneous idea virtually - find the market is not as good as the mayor, accustomed to the "food." For example, in 2012, the Guangdong Provincial Government issued the "Guangdong Province Implementation Plan for the Promotion of the Use of LED Lighting Products." According to the plan, the Pearl River Delta region will strive to promote LED public lighting in the east and west areas by the end of 2013 before the end of 2014 to drive the whole society. Popularize LED lighting, achieve lighting energy saving of more than 50% in the same year under the caliber of the province, and pull the LED industry to achieve an annual output value of over 500 billion yuan at the end of the “Twelfth Five-Year Plan” period.

Now, under the impetus of the country, China's LED industry has initially formed a relatively complete industrial chain including the production of LED epitaxial wafers, LED chip preparation, LED chip packaging, and LED product applications, forming four major regions, 7 With the large-scale industrial structure, the scale of enterprises has also grown geometrically in recent years. However, how many companies in the entire LED industry can leave government policies to support themselves? Although it is not possible to give an answer now, but under the test of the market economy, time will produce results.