During "Twelve Five" China LED companies are seeking to expand upstream

In addition, BDO Runda, Guangdong, Guang Dong Bright Star, Foshan Sai Weike LED technology and a number of companies have begun to increase the investment in the field in the LED chip. Among them, BDO Runda 3.2 billion capital increase to its subsidiaries, and increase the development, production, marketing LED chips. In addition, early December, the global chip giant American Cree LED (CREE) invested $ 50,000,000 in the establishment of the chip production base in Huizhou, also officially put into operation.


Although the rapid expansion of China's LED industry, the average annual growth rate of about 30%, according to statistics, the LED industry in 2009 reached 82.7 billion yuan of sales revenue (including LED product applications), but in rapid development, China's LED industry is also face some problems: the key to the basic equipment and materials imported; products are more concentrated in low areas on price competition.


LED or light-emitting diode, is the world's most promising high-tech industries. The high technology content, long chain, industry driving ability, current product application has been extended to the field of electronic information from the lighting. In 2009, the global LED product (not including applications) sales of approximately 11.8 billion, nearly 10 years the scale of the global LED industry, the average annual growth rate of over 20%.


"The scale of China's LED industry is built on by many outsiders to enter the industrial development is still in its infancy, the lack of core technologies, lack of innovation, market competition, confusion, product quality varies greatly and so on, these problems seriously hindered the development of the domestic LED industry . "industry sources, introduced the current domestic total LED company currently has more than 3,000, of which 2 / 3 is the downstream businesses, only 50 more than the upstream business.


Engineering Research Institute under the LED industry statistics show that in 2010, about the size of China's LED industry 125.6 billion yuan, of which, LED manufacturing, packaging, application output were 36 billion, 27 billion yuan and 950 yuan. This set of data show the display in the upper reaches of China's LED industry - the manufacturing sector of the weak.


Shenzhen Wang Dian-fu Federation of LED industry in an interview, pointed out that most Chinese companies currently do not have the core technology of LED, LED chip core technology is mainly controlled by the current Philips, Osram, Cree, Nichia and a few Industry leading foreign hands.


"Chinese companies into upstream LED chip industry, to better carry out the vertical integration chain, enhance the cost advantage and ability to resist risks. LED chips to the upstream companies must break in order to maintain the healthy development of the entire industry. If domestic enterprises blindly in the downstream competition, inevitably again become a well-known enterprises of foreign trade low-end processing and assembly base. "SG Securities analyst Liu Liang think.