Entry barriers low LED industry facing barrel effect

Topband plans to invest 380 million to build Optoelectronics Industrial Park. Bund Runda wants to build 3 billion yuan to build the largest LED packaging base in China. Lehman Optoelectronics will invest more than 150 million to build high-end LED production lines. Tiantong will invest 360 million in LED projects. Crystal Optoelectronics plans to invest 2.9 billion in the production of sapphire crystals in Xinjiang, Jinyang optoelectronics ordering four production of LED epitaxial wafer MOCVD equipment, Zhongkai planning 6.22 square kilometers to create LED Industrial Park, Wulong 2.1 billion LED industry project construction, Schott Capital 1.8 Billion LED industry, Inspur Huaguang invested a total of 750 million yuan to build Linyi Optoelectronics Industrial Base, and in 2011, 60% of MOCVD equipment was shipped to the mainland market......

In the past two months, the investment boom in the LED industry is almost boiling point, and billions of investment projects are seen everywhere.

A large amount of capital has entered the LED industry. On the one hand, it has rapidly lowered the cost of the industry. On the other hand, it also exposes many problems of disorderly competition. Once the core technologies are insufficient and talent shortages cannot be improved, the LED industry is still constrained by the shortest short board and cannot achieve the expected capacity.

The problem of overcapacity is becoming more and more serious In the first half of the year, the domestic LED industry has experienced a period of severe overheated investment. In this case, there was a voice in the industry, how to deal with LED excess capacity? It is understood that many domestic LED lighting companies have mastered the low-power chip technology, and high-power LED lighting requirements on the epitaxial material is high, in this In the background, it is extremely difficult for Chinese companies to obtain a share of the LED upstream industry chain. Only a small number of enterprises can survive in the cracks.

Industry sources pointed out that the LED market entry threshold is relatively low, the initial investment of 100 million yuan can be set up factories, making all regions have launched LED projects, and many have never been involved in the LED industry listed companies have also joined them.

According to expert analysis, the hot LED situation seems to be somewhat similar to previous polysilicon and LCD panels. Judging from the current construction statistics and planned construction projects, LED's production capacity will at least overdue the market demand of the next 3-5 years. After the completion of a large number of LED projects will highlight the intractable problems of LED industry is not concentrated, overcapacity, disorderly market competition, talent shortage.

Worrying is that although the investment is hot, the market is not optimistic. The price of sapphire substrates has been declining this year. According to relevant statistics, from January to July this year, the price of 2-inch sapphire substrates fell from the highest of 35 US dollars per piece at the beginning of the year to the current level of US$13 per piece to US$15 per piece, with an average decline of more than 50%.

"Overcapacity in the upstream will inevitably lead to a drop in the price of LED chips, and LED chips will account for a higher proportion of product costs. As a result, terminal products may be further reduced in price." According to experts from the China Lighting Association.

If the price cut can bring market popularity, it is not a solution, but the problem is also expressed in the technology. LED industry experts Zhong Qun said, "LED lamp prices are indeed higher than the general lamp, but it is not a major problem." LED lamps produced by many SMEs are now in the quality and technology are not pass, often necrosis. Zhong Qun suggests that companies need to make more efforts in applied technologies rather than blindly investing in the upstream.

Investment should not be limited to the LED industry in the production line is an emerging industry with high input and high output. At present, China's LED industry still has a relatively short board in its technical reserves. Domestic LED lighting products have poor luminous efficiency and low color rendering. And the source of the chip mainly depends on imports, and the cost of the product is virtually lifted.

Faced with the lack of core competitiveness of terminals, high prices, and flooded with defective lighting market, in the face of foreign-funded enterprises, many local market advantages have disappeared.

Industry experts believe that lighting companies can only find more ways to overcome the bottleneck of LED technology. This is a trend in the development of the LED industry. Only the core technology of independent innovation and research and development can lead the others in the lighting market. If this stock investment boom can improve the defects of the domestic LED technology, it will bring a positive impact on the LED industry.

The industry calls for rational investment analysts to point out that, overall, the current industry investment boom is a bit top-heavy, resulting in a deformed industrial structure. The LED investment fever and the market are deserted and the investment enthusiasm is worthy of recognition. However, behind these investments, it is more reasonable to return. If the one-sided investment overheating leads to industrial imbalances, it will not help the industry. Balanced, orderly and sustainable development is a feature of a mature industry.

In addition, in the market, high-priced LED products, for the average consumer, it is difficult to accept for a while, despite the LED chip prices a lot, but still can not completely reduce the price of LED products, the price change is not just through investment in the upstream What can be changed is that, more importantly, the balanced development of the entire industry and standardization of production, as well as technological breakthroughs, can not always rely on foreign technology, more need their own patents, can make the price of LED products fall.