Jiangmen LED Industry Urgently Needs to Improve Endogenous Competitiveness

In recent years, Jiangmen's green (semiconductor) light source (ie, LED) industry has achieved rapid development driven by the ultra-conventional preferential support policies. This industry has thus become the focus of development in the city during the “12th Five-Year Plan” period. It plans to build a domestic first-class and internationally competitive industry by establishing a series of measures such as building a green light source industrial base in the High-tech Zone and building a green light source Expo Trade Center. Clusters will become one of the industries with an output value exceeding 100 billion yuan by 2015.

At present, the domestic LED industry is facing the turmoil of the solar photovoltaic industry similar to the previous period: Once the landscape was once overwhelming but the production capacity was seriously excessive, the shrinking of the international market led the industry to enter the winter. In the past two years, there have been over 100 cities in the country that have listed LED as a priority for the development of new industries. Most regions in the Pearl River Delta are also developing vigorously and have begun to build a number of LED industry bases. With the large number of LED's being launched, besides the investor's mentality of self-interest, the performance of local governments is even more worrying. Some places do not have the basics and conditions at all, but they also insist on LED. Last year, MOVCD machines registered and registered by the National Development and Reform Commission amounted to more than 700, which is evident in the madness of LED industry development in various regions.

However, the development of the LED industry in our city has a relatively solid foundation, and it does not follow the trend. The city has so far introduced more than 50 LED projects with a total investment of about 26 billion yuan, and the policy support has continued to increase. The subsidies for MOVCD equipment have reached more than 60 million yuan, and there are also technologies and funds such as Citizen City, Neo-Neon, and Delixi. Strong and powerful large enterprises are the backbone. Jiangmen LED has formed a complete industrial chain covering upstream epitaxial wafers and chip manufacturing, midstream packaging, and downstream applications, and has been growing at an annual rate of over 30%. In the first three quarters of this year, the output value of LED was 11 billion yuan, a year-on-year increase of 27.4%, and the growth rate has declined. According to industry experts' estimation, due to fluctuations in the entire industry, about 30% of small LED companies in our city will be eliminated, but this may be more conducive to the healthy development of the industry.

At present, the main performance of the disorderly competition in the LED industry is the low level of industrial technology, the large gap between chip R&D and manufacturing and foreign giants, lack of their own standards and testing systems, and the second reason is that the industrial structure is very unreasonable. Most domestic LED companies Crowding in the lower reaches of the profit margin of 30% to fight hard; Third, the products mainly rely on exports, the added value is not high, it is difficult to accumulate technology; Fourth, facing market development and development, consumer acceptance, cost and price series of problems. This disorderly competition will inevitably hurt the entire LED industry. Many small businesses will face problems such as the market and funds, and reshuffling will be inevitable.

Recently, the National Development and Reform Commission and other departments have issued a timetable for the phase-out of incandescent lamps in China. This has been a major advantage for the LED industry. However, if the product cost and price cannot increase consumer acceptance, it will not be able to turn the good into reality. Sexual motivation. The export rate of Jiangmen LED exceeds 80%. When the economic conditions of developed countries are sluggish and the demand for LED lighting products shrinks, if they encounter the “double reverse” (ie, anti-dumping and countervailing) investigation lawsuit as in the photovoltaic industry, they will fall into The predicament of a vicious price war.

In the long run, the LED lighting market has broad prospects. However, the biggest problem facing the development of the LED industry in Jiangmen is how to enhance its endogenous competitiveness in the fierce market competition. Therefore, we must make every effort to break through these two major bottlenecks, which are the lack of core technologies and the restriction of key equipment, as well as the difficulty in market promotion and application, so that the industry can gain more room for growth.