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Depth Perspective: The Development of China's LED industry, the advantages and disadvantages

   And multinational corporations, the Chinese LED companies in many areas there is a big gap. How to improve China's LED core competitiveness of enterprises, and actively participate in the competition of globalization, we urgently need to consider.

   First, the advantages of analysis.

   (A) low market entry threshold.

   1, the technology has a good research base is gradually narrowing the gap with foreign countries.

   Despite the weak domestic industrial base LED, technology level is relatively low, but some domestic enterprises to hire foreign technicians,ratchet tie dowm continue to make breakthroughs in technology, many companies have made intellectual property rights, the domestic high technology enterprise with Taiwan makers have the or less the same level of technology, and international companies are also shrinking the overall gap.

   2, construction of less capital investment.

   LED billion initial investment can build factories, the Year optoelectronics, Hangzhou Silan Microelectronics and other well-known listed companies within the industry will more than 10 billion total assets, the domestic enterprises to enter the low threshold, easy rolling development, which integrated circuits Manufacturing and LCD panel manufacturers to easily billions of billions of yuan in investment, more than "negligible", the domestic enterprises easy access to the formation of industrial clusters.

   (B) the domestic part of the core advantages of companies already have proprietary technology.

   Jinqiu Wise Consulting analysis, compared with microelectronics, the field of LED smaller gap with foreign countries. China has independently developed the first light-emitting diode (LED), the world's first light-emitting diode than just a few months later. Overall, the current light-emitting diode of the semiconductor industry's technology level, and the developed countries only a difference of 3 years. Through the "863" projects such as the support, China has initially formed from the epitaxial wafer production, chip preparation, device packaging integrated application of relatively complete industrial chain, is now engaged in the semiconductor light-emitting diode devices and lighting production enterprises above designated size more than 400 products have been packaged in the international market accounts for a sizeable share.

   (C) LED industry has a labor cost advantage downstream.

   Semiconductor lighting industry, especially those located in the downstream industry chain, chip packaging and lighting industries, is both a technology-intensive industries, but also a labor-intensive industries, the difficulty and risks are much lower than the microelectronics industry. Development of semiconductor lighting industry can give full play to our advantages in human resources, development of related industries and increase exports, creating jobs. After the maturity of the technology, LED downstream packaging and device production is labor intensive, China has significant labor cost advantage.

   (D) the initial effects of the formation of industrial clusters.
   The rapid development of LED industry in recent years. LED products can be widely used in landscape lighting, security lighting, special lighting and general lighting and other fields, there are thousands of billion of its market potential. Jinqiu Wise Consulting analysis, China's semiconductor lighting industry is entering independent innovation, to achieve leapfrog development in the important period. In 2006 domestic market share of 44% of the chip has been developed, including LED lights, miner's lamp and other four categories, 2001-more than 140 new products in 2006, average annual sales growth of semiconductor lighting market is 48%. China has Lighting the world's largest producer and exporter. In 2006, China's lighting industry output of about 160 billion yuan, export 100 billion U.S. dollars, accounting for 18% of the global market. A new industry to seize the commanding heights of semiconductor lighting the battle has been fought in the world. In 2006, global semiconductor sales in the lighting market over seven billion U.S. dollars, the average annual growth rate of more than 20%, the next 5-10 years will form a 50 billion -1000 billion potential market.

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