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However, the opening of the layer of aura, behind the seemingly windy LED industry, is actually relying on the government to promote the wave, after an extremely prosperous, perhaps the current stage of China's photovoltaic industry dilemma, is the future of the LED industry.
In order to avoid repeating the mistakes of wind power and photovoltaic industry, the state's support policy for the development of LED lighting industry has begun to become more rational.
Recently, the National Semiconductor Development and Reform Commission issued the "Semiconductor Lighting Energy Conservation Industry Plan" (hereinafter referred to as "the "Plan"), the target value of LED lighting in 2015 will be lowered from the 500 billion yuan of the "Twelfth Five-Year Plan" to 450 billion yuan.
In addition to relying on government orders, industry players are also exploring the commercial market, this year will be a key year for LED lighting companies to compete.
Broad prospects
According to the reporter, LED is the abbreviation of LED. Different kinds of LEDs can emit light from different wavelengths from infrared to blue. In recent years, the most attractive development of LED is to apply fluorescent powder on blue LED to convert blue light into White LED products.
The industry believes that LED can not only directly convert electric energy into light energy, but also has a service life of up to tens of thousands of hours to 100,000 hours. It also has power saving, environmental protection, mercury-free, small size and fast response. High shock resistance, can be applied in low temperature environment, light source with directionality, high color saturation and rich color gamut.
In recent years, Japan’s “21st Century Light Planâ€, the US “Next Generation Lighting Planâ€, the EU “Rainbow Planâ€, and the Korean “GaN Semiconductor Glowing Plan†have been introduced to promote the development of the domestic LED industry.
According to relevant data, in 2010, the global lighting market will reach 100 billion US dollars, and the LED market with broad development prospects is also accelerating.
"In the past ten years, the global LED market has grown at an average annual growth rate of more than 20%. It is conservatively estimated that the market size in the next 15 years is expected to reach 200 billion US dollars." Zhu Xiaoyu, chairman of Zhejiang Zhongzhou Optoelectronics Co., Ltd. predicted.
China is the world's largest producer of lighting sources and lamps, but mainly low-end products, accounting for only 18% of the world market, big but not strong. It is of great significance to develop the LED industry and enhance its international competitiveness. To this end, China launched the National Semiconductor Lighting Project in October 2003, and promoted the development of the domestic LED industry and lighting industry through policy guidance and incentives.
In recent years, under the support of local governments at all levels, LED industry parks have sprung up.
It is understood that China's LED industry has formed four major regions (Pearl River Delta, Yangtze River Delta, Fujian Jiangxi, Northern Region), seven industrial bases (Dalian, Shanghai, Shenzhen, Nanchang, Xiamen, Yangzhou, Shijiazhuang).
Mainly dependent on the government
China's LED industry started late, but in the face of such a broad market, local governments have vigorously fostered the development of LED enterprises in the region from the perspective of their own interests. The long-term "zero-door" access principle has caused the LED industry to "consist" with many "bad habits" such as "industry chaos, miscellaneous products, and enterprise difficulties". The industry as a whole has shown a situation of "high and low."
"Since the rise of the industry, it has been dominated by government support, supplemented by independent development of enterprises, which indirectly contributes to the dependence of enterprises and slows down the pace of non-government market development."
According to media reports, in order to implement the “Twelfth Five-Year Plan†energy conservation and emission reduction plan, the country has increased its subsidies for the LED lighting industry since 2009. Thousands of companies have invested in the LED industry one after another. Many of them are in order to get a share of state subsidies and enjoy various benefits such as tax breaks, subsidies and cheap industrial land.
Some companies rely on government subsidies for net profit, and state subsidies account for a significant portion of their profits. China's LED leading enterprises are not ideal. In 2012, Sanan Optoelectronics' third-quarter profit was 667 million yuan, of which subsidies amounted to 328 million yuan.
The huge subsidies have made the investment of related companies more than impulsive. Unlimited expansion of its production capacity, reckless acquisitions, mergers and acquisitions related companies, blind pursuit of scale production and economies of scale, and did not focus on research and development and core technology to improve the core competitiveness of enterprises.
According to industry insiders, at present, LED core technology - chip technology is mainly controlled by the United States, part of which is in the hands of Taiwan, China is mainly LED OEM base, and the Pearl River Delta is a gathering area for large and mid-stream enterprises. . Unable to master the core technology and the imbalance of cost performance of LED lighting products is still a serious injury in the LED industry.
If LED companies that rely on government subsidies are not "awakening" as soon as possible, their future outcomes will be the embarrassing situation of emerging industries such as wind power and photovoltaics in China.
Taking wind power as an example, in 2012 China's wind power installed capacity reached 60.83 million kilowatts, ranking first in the world. Its development speed is similar to that of the current LED industry, but in 2012 it has fallen into a quagmire of losses in the whole industry. Huarui Wind Power, a leading domestic fan manufacturer that has developed at a rocket-like speed, has repeatedly “stopped work and holidayâ€.
In contrast, China's LED enterprises, in the Guangdong region claiming to have China's semiconductor industry cluster, Shenzhen closed more than 80 LED lighting companies in 2012; Foshan in 2012, nearly 10% of LED lighting companies closed down, Dongguan, Zhongshan LED lighting companies also Deep depression and cold wave. There are 11 net profit declines in the 20 LED companies listed.
Blind development will only lead to insufficient competitiveness, and it will not be able to escape the fate of being eliminated in the market. The huge amount of state financial subsidies has not only made these enterprises that have grown up in the greenhouse "new", but has become a catalyst for their "dead". At the same time, it is difficult for the state's finances to afford enterprises that are getting bigger and bigger but have no benefits as long as they are subsidized
Commercial LED lighting market to be activated
At present, the government's subsidies for LED products are mostly concentrated in the public lighting field, in order to increase the government's macro-control, whether this will slow down the time for LEDs to enter civilian lighting remains to be considered.
However, if the LED industry wants to avoid the old road of China's photovoltaic industry, it must rely on the government on the one hand and the commercial market on the other, and walk on two legs.
The "Plan" pointed out that the proportion of China's LED lighting in the overall lighting market will increase from 0.2% in 2010 to 20% in 2015. By 2015, the scale of China's LED lighting industry will reach 450 billion yuan, of which LED lighting applications will reach 180 billion yuan.
Qi Jun, deputy secretary-general of the National Semiconductor Lighting Engineering R&D and Industry Alliance, said that the output value of China's LED lighting applications in 2012 was about 30 billion yuan. It is concluded that China's LED lighting industry will achieve 6 times rapid growth in the next three years.
“Domestic LED lighting now has two mainstream markets. One is government-led street lighting and public lighting; the other is energy-saving retrofit for commercial lighting. The civilian LED lighting market is still small,†said Deng Fei, secretary of the Board of Directors of Dehao Runda. The commercial LED lighting market is starting, and many real estate renovations have begun to use LED lights. In the future, the LED market will be transformed from the government to the government and market "two-wheel drive."
Bian Difei, director and vice president of Huacan Optoelectronics, who is engaged in the LED lighting chip industry, said in an interview with the media: "This year, the LED lighting commercial market will rise, because from the perspective of application technology and product prices, the convergence of LED lighting and demand has been Higher and higher."
In addition to relying on government orders and developing commercial LED energy-saving products, major LED companies should take their vision to a farther place and develop and develop higher-level services such as LED energy-saving solutions, so that enterprises can be more competitive. In order to avoid the old road of photovoltaics and wind power. 
How does the LED industry avoid repeating wind power photovoltaics?
Abstract Following the wind power and photovoltaic, the LED energy-saving industry has become the object of choice for all kinds of capital. However, the opening of the layer of aura, behind the seemingly windy LED industry, is actually relying on the government to help, after an extremely prosperous, perhaps the current stage of China's photovoltaic industry...
Following wind power and photovoltaics, the LED energy-saving industry has become the object of choice for all channels of capital.