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China's LED industry is still in the thinnest segment of profit


China's LED industry is still in the thinnest segment of profit

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  At present, with the update of technology, LED can be said to be no stranger in China, but China's LED industry is still in a very weak profit link. The reason is that the core technology is in the hands of foreigners, resulting in high prices.

    According to reports, similar to the structure of China's global IT industry chain in the past, in the LED global industry chain, Chinese companies are still in the middle and lower reaches of the industry. In the composition of the entire LED industry chain, LED epitaxial wafers and chips account for about 70% of the industry's profits, LED packaging accounts for about 10% -20%, LED applications account for about 10% -20%. More than 70% of China's LED industry is concentrated in the middle and lower reaches of the industry, which is the thinnest part of the profit. "The vast majority of LED upstream core technologies and patents are in the hands of others." Secretary Shen Ru told reporters that the current domestic LED epitaxial materials and chips are mainly low-end and medium-sized, and more than 80% of power LED chips and devices are imported. . What is even more worrying is that because a considerable number of Chinese LED application companies have not paid royalties, this makes their products at risk of infringement in overseas markets.
    In addition, at present, domestic LED manufacturers mainly focus on the fields of architectural landscape lighting, large-screen display, traffic signal lights, etc., resulting in insufficient product development for ordinary people. “Really, the LED products themselves have some problems, and the color rendering index has some gaps with the traditional light source. That is to say, its light efficiency is already very high and can be used completely, but the comfort and light environment are better than the traditional light source. There are still some gaps. In addition, the development of its supporting products, supporting lamps, current-driven parts, and some areas that need improvement, on the whole, these two aspects limit the further promotion of LED."