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LED future core technology business opportunities in China geometric control of others

    LED industry is attracting more and more companies have joined them, but in the melee among the Chinese enterprises the opportunity to actually geometry? "Do not think the city is very advanced, in order to spend LED lights. In yurts also use solar energy LED lights, hanging next to the donkey, horse meat."
    Cree (Nasdaq: Cree) General Manager of China Tang Guoqing good at discovering details of his other identity is China Association of Lighting Professional Committee of semiconductor lighting, and its prospects for the Chinese LED market stats for optimism. In full color LED,solar heater LED traffic lights, solar LED lights and LED landscape lighting production, our country now have the world's first.

    LED or light-emitting diode, is converted into visible light to electrical energy solid-state semiconductor devices, the main characteristics of green, energy-saving. Global energy-saving lamps in China accounted for 70% of the share, but only semiconductor lighting 1% of the market, so there is only one energy-saving lamps vast development space. By 2010 the output value of China's LED sales will exceed 1,500 billion yuan,solar energy the data twice in 2008, and an annual growth rate of 30%. The next 15 years, China's LED industry market and the Chinese export market is expected to be around 5 trillion yuan.

    The huge Chinese LED market, bringing the two high growth performance of a class of giant surge of foreign capital, and the other is involved in the growing LED business. Cree and Nichia, Osram, Philips claimed that the four largest LED chip giant, has just been published as of June 30, 2010 annual report estimated data show that its fiscal 2010 revenue reached 8.5 billion U.S. dollars, an increase of 53%; net profit rose 402% to $ 152,300,000. To grow is not limited to, Career, Philips reported a second quarter net profit of 262 million euros (340 million U.S. dollars), compared to only 45 million euros. Philips did not forget to emphasize that the profit surge was due to lighting and consumer electronics sector, strong growth in sales.

    China and Asia's LED market growth, the growth of these foreign companies to obtain the maximum power. Fiscal year 2010, Career revenue of its total revenue of the Asian market of about 2 / 3, in mainland China and Hong Kong's revenue growth of up to 100%. Cree LED industry has a plan to shift the focus to China, the company's 2010 about 167 million years, most investment in China to use.

    High-quality performance with foreign giants growth compared to the huge legion of Chinese enterprises have a "paper tiger" flavor. Currently there are only three or four thousand LED lighting business, the variety covers the home, business license, electrical and other fields. But more concentrated in the middle and lower reaches industrial chain, with LED chip production capacity of enterprises is only 62, even count the large-scale packaging capacity of enterprises, the layout of the upstream industry chain is not a few hundred. The LED on the profit share in the distribution chain, LED epitaxial wafers and chips account for about 70%, LED packaging accounts for about 10% ~ 20%, LED applications also accounted for about 10% to 20%.

    The industry believes that China's LED technology companies top companies in Europe and America at 3 to 5 years are still gaps. Many LED companies are relying on government subsidies in the completion of profitable growth. Indeed the Government has spared no effort to promote the LED industry in early 2009 Science and Technology launched the "city of ten thousand ten" model cities program of semiconductor lighting applications, covering Beijing, Shenzhen and other cities in the developed 21; local governments to join, such as Dongguan city government LED industry as the "emerging strategic industries" and into Dongguan, the "five double" (double output in five years) plans. It has been intense to say that the domestic market has just dried according to optical bright LED business growth rate is due to government subsidies, 2007-2009, government grants were received by 180 million yuan, 8.6886 million yuan, 37,120,400 yuan .

    The great efforts of the government led to the current application of multi-national government procurement, not really into the civilian areas, so the market demand is very small. One side is a continuous increase of the Chinese Army LED business, one side is the core technology controlled by others. This is how the LCD industry in China to similar!

    National Development and Reform Commission issued guidance to the industry, requiring that by 2015, domestic chip market share of 70%. Pinning his hopes on the government to help companies remove the bustling Chinese LED behind the shadow of this huge industry, it should be the best One way to solve.

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