Government subsidies to promote the LED industry to become hot and low-cost competition has emerged

"LED application technology has not yet fully matured, but the low-price competition among LED companies has started in advance." Xu Changchun, deputy general manager of domestic LED driver power supply manufacturer Nanjing North Huihua Optoelectronics, said whether it is LED indoor lighting or LED Outdoor street lighting, the phenomenon of low-cost vicious competition has been very obvious, "For example, in the midst of the month of mid-April, at the China Pavilion at the Frankfurt Lighting Fair, everyone ran into a mess in order to grab orders."

"Because LED lighting is a new product, customers don't understand it well. The result is that there is a quotation. 1W is reported for 20 yuan, or 45 yuan. The customer is also awkward, how to determine the cost of LED lighting in the end, how much is worth "Xu Changchun pointed out that premature low-price competition will naturally lead to cutting corners in product quality. Because, the domestic LED lighting standard can no longer lag, otherwise it will affect the development of the domestic LED industry.

In spite of this, the international process of eliminating incandescent lamps has been accelerating and the people’s awareness of energy conservation has continued to increase. With the background of strong national support, domestic LED companies have earned enough cash in the first half of this year, and listed companies with LED business stock prices It is followed by rising water.

Government subsidies have become hot to promote the LED industry

However, the growth of the LED lighting market compared to the growth of the LED TV market is only pediatrics. Because, the trend that LED TV replaces CCFL backlit LCD TV in the second half of this year is already a foregone conclusion.

According to the latest DisplaySearch data, the global LED TV penetration rate has reached 18.5% in the second quarter, which is an increase of 110% compared to the first quarter; LCD panel makers have planned to adjust the market penetration of LED backlight panels in the fourth quarter of this year. To 40%, to more than 50% in the second quarter of next year.

"The price of LCD TV panels will drop sharply in the third quarter of 2010 due to oversupply and downstream inventory adjustments. However, LED backlight panel prices will be reduced faster than CCFLs," said Xie Qinyi, deputy general manager of DisplaySearch Greater China Markets. The survey results of WitsView in Taiwan also showed that the proportion of LED backlight panels in the second quarter of the mainland TV brand panel purchases reached 14.5%, which was a 2.7-fold increase from the first quarter, which was only 4.8%.

According to industry insiders, the popularity of LED TVs has also led to the popularization of LED energy-saving concepts, which will certainly stimulate traditional lighting to further transform LED lighting. The domestic LED industry has also been developing rapidly due to the rapid growth of the LED application market. One of the main reasons is that 70% of Taiwan's LED industry's production capacity and output value have been or are being transferred to the mainland.

According to relevant sources, in order to attract the LED industry in Taiwan and develop the local LED industry, the local governments in China are currently constructing LED industrial parks vigorously. At present, at least more than 100 have been formed.

It is reported that the mainland government's investment promotion, especially the MOCVD (LED chip production equipment) financial subsidy policy, has effectively promoted the entry of more mainstream LED chip companies in the Taiwan region and the United States. Because, each 8 million to 10 million yuan of financial subsidies, significantly reduced the LED chip companies equipment purchase costs.

"The mainland will plan to increase the number of MOCVD units in the next few years by more than 1200, of which the planned increase in the number of MOCVD will exceed 300. Xiamen Sanan and BDO Runda have already ordered more than 100 MOCVD." The number of mainland LED chip companies has increased too much, and most of them have plans to introduce MOCVD. The shortage of related technology R&D talent for the production of LED epitaxial wafers in mainland China will become a very big problem.

It is reported that whether or not the talent competition is a victory is an important factor for the mainland LED chip companies to win in the future market.

LED lighting market grows rapidly

The BDO Runda, which claims to fully enter the LED industry chain, has recently surged. Compared with the lowest price of 2.15 yuan in October last year, it has increased by more than eight times. In the first half of the year, BDO Runda’s revenue reached 1.074 billion yuan, a year-on-year increase of 55.42%, and a net profit of 20.5 million yuan, a year-on-year increase of 915.95%. Among them, LED application product income of 138 million yuan, an increase of 1411%, accounting for BDO Runda's total revenue share of nearly 13%, also marks the BDO Runda transition from small appliances industry LED industry initial success.

It is not only BDO Runda, but also NVC Lighting, Zhejiang Sunshine and Zhenmingli that have gained a lot in the LED lighting market. In the first half of this year, the gross profit of NVC LED products soared to 740,000 U.S. dollars, an increase of 1245% year-on-year; Zhejiang Sunshine's LED lighting products revenue was 65.69 million yuan, an increase of 497.29% year-on-year; and Neo-Neon LED general lighting revenue was 166 million. , an increase of 228.5% year-on-year, accounting for the proportion of the company's total revenue also rose to 23%.

According to relevant sources in the industry, foreign demand for LED lighting has suddenly increased in the first half of this year, and domestic LED indoor lighting has started to start, especially for industrial lighting applications. In the first half of this year, the sales volume of LED bulbs in Japan accounted for 50% of total bulb sales. This has given the entire LED industry and investors a lot of imagination, and the LED lighting market in Europe and the United States has also been driven.