LED industry is still good and international competition is still worrying

In the face of fierce competition and overcapacity in the industrial winter, for many LED companies, either seeking the best way to keep warm, such as going public, or face the risk of closure or merger.

Policy springs up in southern countries

On the evening of March 12, 2012, the Guangdong Provincial Government published the full text of the “12th Five-Year Plan” for the development of strategic emerging industries in Guangdong Province. The plan shows that Guangdong will invest 11.6 billion to support 13 LED projects.

In another development, Dongguan, a city of LED lights, will soon issue the "Dongguan City 2012 LED Industry Development Work Plan". Dongguan City will regard LED as a key supporting development industry. It will formulate an industrial base plan, clarify the main directions of the two industries, and build three industries. Public platform, agglomerating four industrial development factors, building five industrial subdivisions, adopting five industrial promotion measures, breaking through the upper reaches of the industry, and completing the LED industrial chain in Dongguan. By 2015, LED will achieve an output value of RMB 50 billion. On the closing of the publicity period on March 16th, related persons from the Dongguan Science and Technology Bureau stated that after the end of the publicity period, the contributions will be coordinated according to opinions of all parties, and the formal program will be introduced in the near future. According to industry insiders, Guangdong Province is leading the country in the establishment and promotion of the LED industry standard system and the support of industry development policies, and is worthy of recognition.

One after another

The good news from the LED industry was one after another. Guangdong's "12th Five-Year Plan" was just released soon. The Ministry of Finance, the National Development and Reform Commission, and the Ministry of Science and Technology organized the "2012 Semiconductor Lighting Products Financial Subsidy Promotion Project on March 20 in Beijing Meiquan. The Beijing Office of the Palace Hotel conducted an open tender in the country. Nearly 300 bid representatives from 110 companies across the country participated in the bidding. Among them, in addition to Philips, OSRAM and other internationally renowned companies, LED companies such as Myles, Huizhou Yuanhui Optoelectronics, and LED companies such as Huizhou NVC, Sunshine Lighting, and Shletwright have all participated in bidding. The final bid results have yet to be announced. This financial subsidy promotion project is the first time that the Ministry of Finance has subsidized the promotion of LED products. According to the announcement, the companies participating in the bidding must have independent legal personality and registered capital of no less than 50 million yuan. The tender includes a total of indoor lighting products - LED downlights, reflective self-ballasted LED lights and outdoor lighting products - LED lights, LED tunnel lights 4 products.

In addition to subsidies, the state has also reduced the LED industry in terms of tariffs. In March this year, the Ministry of Finance, the Ministry of Industry and Information Technology, the General Administration of Customs, and the four ministries and commissions of the State Administration of Taxation jointly issued the "Notice on Adjusting the Catalogue of Import Tax Policies for Major Technical Equipment", exempting customs duties and import link value-added tax. In the adjustment of the catalogue, 28 major technical equipments have been added, and LED equipment has become one of the three most obvious emerging industries. The Semiconductor Light Emitting Diode (LED) production equipment selected in the "National Major Support Equipment for Development and Equipment Catalogue (Revised in 2012)" is a newly added category 3 equipment: Metal Organic Chemical Vapor Deposition (MOCVD) and Plasma Etching machine, Indium Tin Oxide (I-TO) sputtering station. According to the “Notice”, since April 1st, imported parts and components of LED type III equipment will be exempt from customs duties, which means that localization of LED equipment and independent innovation will become possible. Wang Zhanguo, an academician of the Chinese Academy of Sciences and a researcher at the Institute of Semiconductors, Chinese Academy of Sciences, pointed out that if equipment made by China can be used, the cost is expected to gradually decrease, and the cost performance of the product can be improved.

SAR first set standards

There is no policy support, but there is also a “rules of the game.” The Shenzhen Special Economic Zone wants to be the first person to eat crabs. On March 21, Shenzhen City held the LED Industry Standards Release and Industrial Metrology Conference, Shenzhen City. The LED Industry Standard Alliance has released the "Part 3: Tubular Lamps" and "Part 4: Bulb Lamps" standards of the "Technical Specifications for Indoor LED Lighting Fixtures" and the revised product standards for LED street lamps formulated in 2010. At present, the overall output value of the LED industry in Shenzhen amounts to 70 billion yuan, accounting for 40% of the national market share.Industry sources said that the LED industry is rapidly developing in Shenzhen, and its associated technical standards are urgently needed to be regulated and determined.

It is understood that the standards for indoor LED bulbs and indoor LED tube lamps were first proposed by Shenzhen, and it is also the first time in China. The person in charge of the Shenzhen LED Industry Alliance stated that the standard classifies the energy efficiency of indoor lighting and specifies the color temperature, color rendering index, and test methods. The purpose is to regulate the current chaotic domestic LED indoor lighting market and improve the indoor lighting of Shenzhen. The technical level is conducive to improving the market competitiveness of Shenzhen LED indoor lighting products.

In addition, the revised product standard for LED street lamps stipulates that the specific luminous flux maintenance rate is revised to not less than 98%, and the energy efficiency grade parameter has also been greatly improved than before. According to industry sources, the biggest highlight of this revision is the first time to combine the simulation and measurement results of the general lighting simulation design software as a means to consider the performance of LED street lamps.

Japan and Taiwan attacked menacingly

According to relevant data, in 2009, the LED packaging industry was distributed regionally on a global scale as follows: Japan's packaging companies ranked first in terms of output value, accounting for 33% of the global LED packaging output value in 2009; packaging companies in the Taiwan region ranked second, accounting for 17% of the world; South Korean companies have increased investment in the LED packaging industry in recent years, and the output value has increased from 9% in 2008 to 15% in 2009; the global market share of LED packaging industry in Mainland China has been steadily rising, and the market share in 2009 It is 11%. The current gap is still large. Insiders pointed out that Shenzhen LED companies listed in the largest revenue does not exceed 1 billion yuan, Taiwanese companies have reached 5 billion yuan in revenue, European and American giants are about 7 billion. According to the prospectuses of four companies such as Jufa, Wanrun, Liyade and Shenzhen Changfang, the annual revenue of the four companies is only about 400 million yuan.

It can be seen that despite the policy support, the situation of China's LED companies is still worrying. At present, photovoltaic companies in Japan and Taiwan have stepped up their steps to enter the mainland. It is understood that on March 17th, Shanghai Yaming Lighting Co., Ltd. held a signing ceremony for the joint venture of packaging high voltage LED (HV-LED) modules and high voltage LED (HV-LED) finished light products with Taiyou International Optoelectronics and Epistar. The signing of the contract seems to be beautiful, and it seems that a new chapter in the cooperation between the two sides in the field of LED functional lighting has opened up. However, people in the industry are concerned that this is a disguised form of Taiwan's entry into the mainland LED market. In another development, Taiwan's LED industry boomed on a month-on-month basis. The Taiwanese company Yinghui Optoelectronics joined hands with its strategic partner, Japan Daguang Electromechanical Co., Ltd. on March 18 to formally complete an LED experience hall and lighting in Shanghai. design Center. Ying Hui said that in the future, it will use Shanghai as a base to radiate the entire mainland market and provide one-stop service from production technology, design, installation to after-sales service. These news are undoubtedly the best for the Chinese LED companies that have just seen the sweetness of policies.

After editing

In the current situation of turmoil in the industry and the crisis, in the face of blind expansion, overcapacity, price competition and other issues, many domestic LED companies even if they have policy support, if they do not face their own problems and improve the overall competitiveness of enterprises, The result will still be eliminated by the market.