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Mainland China LED alone is not conducive to the overall industry business development
〖 2011-08-09 | Click 7039 〗

Source: Digitimes Published: August 9, 2011

Continental recently light emitting diodes (LED) companies to quickly rise, although the amazing amount of investment, but also hidden behind the subject of attention. More than 3,000 mainland enterprises most of them are the LED industry chain downstream, and in patents not as good as foreign manufacturers. Today the face of external forces, local enterprises are still alone, fear of future negative impact.

On the other hand, mainland China's LED industry base has as many as 13, had hidden in the problem under the table gradually emerged, such as the homogenization of the industrial structure, defects and other core technologies.

The recently held 2011 China International LED Industry Technology Exhibition and Forum, the experts said mainland China's LED industry is exactly the same and other new energy industries, the rise of fast development, but also with the overcapacity of the shell.

Investment in the mainland of the LED industry figures alarming, Shanghai Semiconductor Lighting Engineering Research Center report pointed out that mainland China's LED industry in 2010 with full scale of RMB 120 billion. The Engineering LED industry statistics institute also said the mainland in 2010 the LED industry signed up to planned investment of RMB 2,178 billion, and to the end of 2010, the new project has been completed the amount of 34.3 billion yuan investment.

However, investment growth in the LED industry behind, but many of the disadvantages previously noted. More than 3,000 mainland China's LED business, and more in the package or the downstream industry chain, but in the industry, the key substrate wafer production technology and core equipment, due to lack of technical background, reasons, long-term patent monopolies by foreign manufacturers, only rely on imports, the price of losing a fundamental advantage.

Even more critical is the face of foreign manufacturers endless offensive, the mainland did not work together local businesses, choosing instead to go it alone. Some local governments to promote local business restructuring, the introduction of many supporting policies, such as procurement of equipment subsidies, tax incentives, local priority demonstration project into the use of local enterprises. Local Government's intention is good, but disguised in other regions to prevent cross-enterprise integration, develop the market.

If the LED industry to become mature and healthy industry, then the vertical integration across the region should be a necessary process. LED companies now scattered all over the mainland, the current fragmented situation, fear of the whole industry to help is limited.

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