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Large number of LEDs and small countries

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Large number of LEDs and small countries

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  In terms of industry scale, China has undoubtedly become a big LED country. According to statistics, in 2010 China's LED sales value will exceed 150 billion yuan, this figure is twice as much as in 2008, and continue to grow at a rate of 30% per year. According to the reporter's understanding, only one province in Guangdong is expected to reach 120 billion yuan in 2012 and 100 billion yuan by 2015. China's LED full-color screen, LED traffic signal landscape lighting production is the highest in the world.

 
    Although China's LED products have an advantage in terms of quantity, they are still subject to high-end technology. At present, the core technology of global patents is mainly in the hands of giants such as Japan's Nichia, Cree, and Osram. At the same time, in the field of epitaxial wafers and chips, American and Japanese companies are also in a monopoly advantage. In this fierce competition, among the thousands of LED companies in China, there are only a few dozen companies involved in epitaxy and chips, and there are only a handful of them that can grow bigger.
 
    According to LEDinside statistics of the LED industry research institute, as of August 2009, there are only 62 existing LED chip manufacturers in mainland China, and there are not many enterprises that actually mass-produce. Enterprises are also mainly concentrated in the low-end, low-end areas. In the high-power field, there are few companies involved in many technical and technological problems. Zhang Xiaofei told reporters that due to the large upstream investment, the requirements for technology, talents and patents are relatively high. At present, only a few enterprises in China have such capabilities.
 
    In the entire LED industry chain, epitaxy and chips account for 70% of profits, which means that only 30% of the downstream profits, more than 90% of China's LED companies will compete for the market in this 30% of profits.