Six Major Characteristics Analysis of China LED Industry
Posted: 03/29/2016 02:03:34   Edited: 03/29/2016 02:03:30  Clicks: 1983
Reviewing the development of China's semiconductor lighting industry during the past 12 years, before 2012, all the devices mainly rely on imports, the whole industry's output is billions of dollars. However, by the end of 2015, the industry scale is expected to exceed 420 billion Yuan; Patents grow from few to more than 30000 pieces now; especially the homemade rate of LED chips, is now close to 80%.
 
Six features of current China's semiconductor lighting industry.
 
LED industry scale continues rising while slowing down in growth.
China's semiconductor lighting industry remains more than 30% growth in a row over the past decade. But this year, influenced by overall development of the economic, its growth rate dropped below 20%. Although in the first three quarters of this year, the scale of China's semiconductor lighting industry is still rising, but growth has slowed down. In some segments of the market, especially automotive lighting is growing rapidly.
 
Concentration ratio of upstream industry increases, and LED chips suffer from fierce price war.
Survey data show that China has more than 70% of the global amount of MOCVD equipment and in the first three quarters, the price of the chip has decreased to 18.5%. One LED corporate chief state outright that their intuitive feelings are chip prices fell by 20% to 30% range.
 
Midstream enterprises: the strong one is becoming stronger and medium-sized enterprises is speeding up the evolution
Midstream enterprises polarize seriously. It is hard for midstream enterprises to make choice. The upstream chip scale packaging has emerged and downstream is reaching to the midstream. The strong enterprise becomes stronger and some small and medium-sized enterprises' survival becomes more difficult and middle enterprises' growth rate is low.
 
Downstream: lighting permeability increases, but enterprise revenue falls.
In the first three quarters of this year, the downstream application value is 258.7 billion and year-on-year growth rate is 18.5%. Permeability was predicted to be 30% and industrial scale up to 500 billion by 2015. It now seems that market penetration has reached expectation, but the industry scale is less than 450 billion because of the price drop.
 
Export growth slowed and the regional markets behave differently.
Growth rate of the first three quarters declines very fast compared with that of last year. Export growth rate of last year was up to 92%, but in the first three quarters of this year, the growth rate is only 13.3%. Europe and the United States are still the main market and market in Southeast Asia grows rapidly.
 
Industry mergers and acquisitions come forth and industry leading enterprises gradually form.
An obvious trend of semiconductor lighting industry is mergers and acquisitions come forth and industry leading enterprises gradually form. Especially since the second half of last year, significant merger cases have exceeded 40 and the industry's leading enterprises gradually form. In the first three quarters of this year, the downstream application value is 258.7 billion and year-on-year growth rate is 18.5%. Permeability was predicted to be 30% and industrial scale up to 500 billion by 2015. It now seems that market penetration has reached expectation, but the industry scale is less than 450 billion because of the price drop.
 
Industry faces three major challenges.
Although the semiconductor lighting has established the leading position in the lighting industry, it is still immature. The light source itself is still in progress, and potential or additional features have not been excavated. The LED industry still faces three major challenges: first, industry innovation ability is not strong, the second is structural overcapacity, and the third is that the development environment of the industry needs to be optimized. The whole industry showed problem of low profit, product homogeneity, and lack of market order, etc. To solve the problem of driving force for the whole industry, solving the problem of technical support and product exports is the top priority. From the global experience, 20 years is needed in the cultivation of a new industry and the application of LED lighting took less than 15 years, so whether alternative lighting or intelligent lighting, or beyond the lighting applications have not developed to vertex and semiconductor lighting industry in the future still has a long way to go.
 
Change wave hit but where is the chance?
The wave of global change has hit and now the world is facing the challenge of energy, environment, aging population and the problem of shift of economic growth. At the same time, the world also faces the challenges caused by protectionism in political area, the cold war mentality and regional conflicts. Especially in technology, how to develop the traditional industry and Internet and emerging industry, the real economy and wisdom industry at the same pace. Especially the digital growth potential has not yet been fully realized. We actually have just begun. We are faced with challenges about how to implement more disruptive technology open innovation in the global scope and realize the cross-border cooperation.
 
Chinese economy has stepped into a new normal state, with economic shift, industrial upgrading and the population aging in sync. In the conversion period of old and new growth engine, Chinese government put forward the innovation drive strategy. One is system and mechanism innovation, and another is scientific and technological innovation, modifying the large-scale low-end traditional industry and claiming for environmental protection green GDP.
 
For the semiconductor lighting industry development goals, ten years ago, we preset with 30% replacement rate by 2015 and now we made it; we preset the scale of production to 500 billion, to be down for now. Mainly because the industry LED chips are now selling in a quite low price, but LED indeed perform well in energy-saving.
 
In the next five years, we are hoping the emergence of high value-added LED products, including, as experts said, LED combined with the Internet of things, the realization of the digital and its services and output could be trillions.
 
What is energy-saving? Energy saving is not only LED lights energy saving, but also energy saving in the whole system services and management which is likely to be up to four times power generation of the three gorges. Now the country is planning next five-year development targets, one of them is the semiconductor lighting and the third generation of semiconductor.
 
Now our country's "13th Five Year Plan" project has included semiconductor lighting and the third generation semiconductor material, the core concept of new science and technology plan is the whole chain design and the integrated organization. "13th Five Year Plan" semiconductor lighting research and development strategy put forward the "one innovation chain, two platforms, three lines" and the whole country team up and form a join force to achieve mutual share of technology and resources.
 
In addition to some basic and frontier research, semiconductor lighting industry is orientated by the goal and problem. More money should be placed on the open platform, mainly for research and service. As for semiconductor lighting, there are three major applications line. The first one is the light source itself. Both its photosynthetic efficiency and quality should be improved. The second line is intellectualization related to the Internet of things. The last line is the application of agriculture, medical and health.
 
In the field of wide band gap semiconductor materials, semiconductor lighting is the first breakthrough. The future third generation semiconductor material and technology has a very broad application space in many basic industries, such as energy interconnection, rail transportation, power electronics and other field. The combination of downstream application of the semiconductor lighting and the third generation of semiconductor will develop to a brighter application prospect.

Six major characteristics analysis of China LED industry


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