Domestic and foreign firms input level to increase LED

Most suppliers are stepping up production to meet the growing overseas demand, manufacturers are expected to invest productivity. Guangdong Province, the project may be issued for the 1,500 kmLED lights large orders, the project covers Dongguan, Foshan, Guangzhou and Shantou.

Some R & D program is in response to a number of LED patents expire. Open these solutions, will allow manufacturers to develop new lighting concepts and enhance the market competition.

For example, the 2008 Chinese companies nearly 26,000 patent applications, most are LED packaging technology and applications.

The diode-based products and other light sources, improving energy levels and reduce costs will be R & D focus. Will focus on improving the durability and life of the product above.

Currently, LED bulb life of 10,000 hours or so usually, but some design above the average. Also, most CFL's lifetime is longer than 5000 hours. More than 8,000 or even 10,000 hours of product, too.

Price depends on the power, size, manufacturing materials and technology used. Most of the domestic enterprises to purchase raw materials, but some are also required to purchase from abroad. For example, ABS is usually imported from South Korea. Taiwan's production of several thermoplastic can also be used.

LED products are normally purchased diodes and chips, the latter mainly from the U.S. or Taiwan. Other lighting solutions, usually from the Cree, Philips, Osram and Nichia and other famous enterprises to purchase.

Most of the cost of raw materials is expected to remain steady in coming months. Since the main packaging technology patent will expire in the year, is expected to LED chip prices to fall 5-10%. May reduce the license fees the patent expires and the next six months so that prices remain stable.

LED-based products is expected to expand in the residential and non-residential areas of penetration. As technology advances have reduced costs and prices, the market acceptance of these products will accelerate the speed.

LED landscape lights are the main export products

LED products are used in many of the major indoor and outdoor lighting applications to replace fluorescent lamps and incandescent lamps. Areas in the garden and landscape lighting, LED products in the production and exports abroad account for a large scale.

2009 Lighting and electrical exports show that the market is changing to green technology. October 2009, shipments grew 11%, more than 30 billion, compared with the first nine months of any significant improvement. January-September 2009, overall shipments fell 24%. CFL, LED light bulbs and supporting the use of these lamps, in 2009 the first 10 months of the strongest growth.

For example, CFL's shipments declined by only 6% to 1.7 billion. CFL LED bulbs cheaper than the 30-40%, more attractive in terms of price, most of the second half of CFL suppliers shipments expected to grow 10%.

Suppliers first half of 2010 sales of LED lighting products grow by at least 10%. Manufacturers may continue to consolidate in Europe, North America and Asia Pacific markets, which are currently the main export market.

However, there will be more manufacturers to develop potential markets such as Africa, the market for low-end products are in high demand, and barriers to trade less.

LED manufacturers in China foreign investment

China is the world's leading LED consolidate its position as producer status. In recent months, a number of leading international companies to invest in the Pearl River, Yangtze River and the Min River Delta, the Bohai Sea economic zone or even to build a factory in western China.

"This year China will become the main battlefield of global LED manufacturers." LED development of the national high-tech enterprise specialized committee director, said Wen Hao Zheng "total foreign investment in this area is expected to exceed 8.8 billion, compared with 2009, significant growth of about 1.5 billion U.S. dollars. "

In order to encourage international companies set up factories in mainland China, the local government introduced a policy of subsidizing construction costs. For example, Nanhai District, Foshan, Guangdong Province, set up a 1.46-2.93 billion dollars in financial support fund. The project was established in October 2009 to support the region's semiconductor lighting industry.

As a result of this, the United States in the South China Sea area SemiLEDs $ 350,000,000 investment in established a new factory. The plant is named "Asahi Optical Co., Ltd. Rui", will be used SemiLEDs patented vertical structure of the metal substrate and high power LED chip wafer production. The first phase in October 2010 in full production, 1x1mmLED chip monthly capacity 20KK. Phase III investment is expected to be completed end of 2013, the production capacity of more than 380KK / month.

Yangzhou has a similar policy. The government took 3.51-3.66 billion dollars to subsidize MOCVD equipment purchases. The fund will be in place before October 2011. Through this policy, Yangzhou will each take $ 1,500,000 equipment purchase. Depends on the equipment specifications, MOCVD equipment price at 440 million U.S. dollars.

Taiwan's Chan Yuen (FormosaEpitaxy) to act quickly to take advantage of the incentives. The company and the Unity Opto, Switzerland and South Korea LG Xuan cooperation, investment 150 million U.S. dollars to establish a company in Yangzhou LED epitaxial chip plant - Jiangsu Formosa Young Company. Full production in May after the expected yield of Jiangsu Formosa Jan 1 billion per month LED chips. Its products will be mainly used for LCD panel backlighting.

Other local government is to adopt the same strategy. In the National Development and Reform Commission published in October 2009 after the latest industry guidance, the city officials are increasing the support of the LED industry. 2009 to 2011, Shenzhen will set aside $ 14,600,000 each year to help fund the development of LED industry. Putuo District, Shanghai, LED industry in 2010 as a special fund set aside $ 57,500,000. American Cree and Osram company is building in Huizhou and Foshan LED manufacturing plant.

Epistar in Taiwan is also taking the same action. It is with the Taiwan LED packaging company Lite (Lite-On) and the mainland appliance manufacturers, will invest 120 million U.S. dollars to build a plant in Changzhou. UMC and Taiwan also set up a joint venture, and $ 16,000,000 invested in Shandong Province established a LED factory.