"Electricity shortage" stimulates LED industry's capital to bet on the trillion market

LED lighting is the third revolution of lighting sources after incandescent and fluorescent lamps. It has obvious advantages in energy conservation. At present, lighting power accounts for 19% of the world's total electricity consumption. Using existing LED high-efficiency lighting solutions can save at least 40% of energy consumption, and can emit 555 million tons of CO2 per year. Experts assert that the future market for LED lighting will reach trillions of dollars.

Because of this, China has already promoted the application of LED light source technology in urban lighting, urban landscape, traffic lighting and residential lighting projects as a major science and technology energy-saving special project, and has been listed as a "12th Five-Year Plan" strategic emerging industry. At the same time, as the world’s second largest economy, China’s huge market demand has also promoted the rapid development of the LED industry.

According to reports, due to the lack of national standards, there is a vicious competition, so that LED lights can only compete for market through price cuts. Industry sources predict that the LED market will undergo a major reshuffle in the second half of this year: "It is estimated that at least half of the LED lamp factories will close down."

The increasingly serious phenomenon of “electricity shortage” has stimulated various capitals to compete in the LED industry and is also the peak period for M&A of LED companies. It is understood that electricity shortages may lead to blowouts of LED demand, causing LED investment fever, and various sources of capital will be allocated to this emerging industry with a trillion market.

Capital gambling on sharp rise in LED industry investment It is understood that Chinese listed companies have sharply increased their LED investment. In 2010, the listed company's LED investment plan alone exceeded 30 billion yuan. Among them, only Sanan Optoelectronics planned to invest 20 billion yuan; BDO ​​Runda announced 4.1 billion yuan investment in LED; Zhejiang Sunshine 2010 annual report said that in the next three years, the total investment in LED will reach 1 billion. In addition, Huizhou Cree, BYD Lighting and a batch of overweight 1 billion yuan projects have also been launched, with a total investment of 6 billion yuan in the Taiwan Lei LED chips and other giant projects settled, indicating that the domestic LED industry will usher in the new A blowout.

After entering 2011, the capital operation still did not stop. On May 21, the listed company BDO Runda announced that 3.5 billion yuan was raised to improve the LED industry chain. On May 25th, Guangri Group, which had just borrowed from the company's Guanggang Group, also “reminded” investors in its announcement that the company is investing in LED in emerging industries and received good results. This is just the "tip of the iceberg" that has broken into the capital of LED. In 2010, listed companies announced that the capital invested in the LED industry was more than 30 billion yuan, and more non-listed company investments were not disclosed.

Guangdong's LED industry ranks first in the country. According to sources from the Guangdong Economic and Information Commission, LED is listed as one of the three emerging strategic industries in Guangdong Province. By 2012, the LED industry scale will reach 120 billion yuan. During the “Twelfth Five-Year Plan” period, a total of 3 million outdoor LED lighting fixtures and 30 million indoor LED lighting fixtures were promoted and applied. Urban lighting achieved the goal of saving 20% ​​of electricity.

According to statistics, in 2010, Guangdong's LED industry achieved a total industrial output value of 85.3 billion yuan, while the national LED lighting industry output value exceeded 150 billion yuan. It is expected that the fastest in 2015, LED lighting market share in China will reach 20%, driving the industry scale of 500 billion yuan, China will enter the world's top three LED lighting market.

It is understood that the Guangdong semiconductor lighting (LED) industry ranks first in the country, as China's LED production province, Guangdong will continue to strongly support the LED industry during the "Twelfth Five-Year Plan" period. According to the “Guangdong Province LED Industry Development Plan (2010-2015) Consultation Draft”, the LED industry scale of Guangdong Province in 2012 will reach 120 billion yuan, forming an industry group with an annual output value of more than 100 billion yuan, cultivating an output value of over one billion yuan. More than 20 companies. By 2015, the scale of the LED industry will exceed 300 billion yuan. It will basically establish an innovation system that combines enterprise-oriented, market-oriented, and production-study-research integration, and will establish a global LED packaging center and the largest product production and application base.

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