[Source: "High-tech LED - Research and Review" July issue Yuan Duo / Gan Qin]
In 2011, in the context of the global economic downturn, the entire LED industry was bleak, and the Chinese LED industry was not spared. Investing in madness, rushing, rising costs, falling profits, overcapacity, price wars, and small and medium-sized enterprises are struggling... ... can be described as all the way to the wind and rain.
After the "shadow" of the year of 2001, the waves have sold countless heroes. In 2012, the policy "Sunny Day" was ushered in. The demand for the LED industry has picked up, and the capital market has been rising one after another. However, the first half of the year The overall development of the LED industry is not smooth sailing, the cost continues to rise, the profit is further declining, the price war is getting worse, the followers are numerous, the talents are still lacking, and so on. The shadows are still spreading, and there are more companies such as retreating doors, closing doors, running gates, etc. The scandal has been widely spread, but it cannot be denied that the Chinese LED industry is laying a solid foundation and is making great strides forward.
Gaogong LED editors summed up and counted the “Top Ten Keyword†of China's L ED industry in the first half of 2012, helping the industry to accurately grasp the lifeline of China's LED market.
Policy--"Timely Rain"
Focus on the index: ★★★★★
In the first half of 2012, the intensive introduction of a new round of central and local industrial support policies seems to be a timely rain in the LED lighting industry. Although the industry is still difficult to conceal the "chaos" ills, the frequent policy dividends have caused the entire industry to heat up rapidly.
Since November 4, 2011, the National Development and Reform Commission announced the roadmap for the elimination of incandescent lamps in China, such as the public bidding for LED street lamps and the 12th Five-Year Plan for semiconductor lighting. On May 16, 2012, the State Council decided to arrange a subsidy of 2.2 billion yuan to support the promotion of LED lights and energy-saving lamps.
What excites the industry is that Guangdong Province has responded positively to the call of the state. On May 23, it issued the “Implementation Plan for Promoting the Use of LED Lighting Products in Guangdong Province†to fully popularize LED lighting in public places, all public lighting built by government finance or state-owned capital. In the field, LED products will be used, and the original non-LED lighting products will be retrofitted with LED lighting by the end of 2014.
Then, Qingdao, Foshan, Dongguan and other cities have successively launched consumer subsidies for the civilian LED lighting market.
Civil lighting is the biggest potential market for LED lighting. Under the government's continued favorable policies, GLII expects that domestic LED lighting production will increase by more than 60% year-on-year, which will be the fastest growing year for the LED lighting industry. With the maturity of domestic LED lighting technology, the timing of government subsidies for end consumers is becoming more mature.
Investment--"trajectory" of disorderly competition
Focus on the index: ★★★★
How hot is the LED industry? The government has been motivated by a series of favorable policies. In 2012, the investment boom was higher than the waves. Enterprises may expand their production, or seek vertical integration, or seek cooperation, or broaden channels, or seek financing, or cross-cutting, or transforming... have invested heavily in internal technology or external repairs. Doors, more fruit dealers, tire dealers, shipbuilders and other "outsiders" forcibly entered, there is no accurate statistics showing that the foreign trade into the LED industry accounts for a large proportion, but the low threshold of LED waves affecting people from all walks of life.
However, the negative impact of the investment in LEDs has become more prominent, overcapacity has increased, manufacturers have rushed price wars... disorderly vicious competition has eroded the healthy body of the entire industry.
GLII statistics show that as of the end of 2012, if all LED projects planned for investment in China are 100% put into production, the overcapacity crisis will be further aggravated, especially in the field of LED sapphire substrates and LED chips. How do manufacturers digest this part of the inventory? Looking for cheap clearance in the market, the price war is getting worse. In one year, the price of LED chips has dropped from more than 6 yuan to more than 2 yuan, and the price of downstream LED lamps has generally decreased by nearly 30%, and it is getting closer to energy-saving lamps.
Throughout the first half of 2012, GLII believes that China's LED industry investment pace has slowed down overall, and has gradually become more rational, and has already bid farewell to the era of investment "upstream". Investors can ignore overcapacity, but the stranding of large-scale domestic investment projects has to lead to thinking, the withdrawal of the GCL-Poly Sapphire project, the reef of the Foshan Xurui Optoelectronics project and so on have shaken the industry, but GLII believes that the industry invests in LED upstream The project will be more and more cautious 　
In 2011, in the context of the global economic downturn, the entire LED industry was bleak, and the Chinese LED industry was not spared. Investing in madness, rushing, rising costs, falling profits, overcapacity, price wars, and small and medium-sized enterprises are struggling... ... can be described as all the way to the wind and rain.
After the "shadow" of the year of 2001, the waves have sold countless heroes. In 2012, the policy "Sunny Day" was ushered in. The demand for the LED industry has picked up, and the capital market has been rising one after another. However, the first half of the year The overall development of the LED industry is not smooth sailing, the cost continues to rise, the profit is further declining, the price war is getting worse, the followers are numerous, the talents are still lacking, and so on. The shadows are still spreading, and there are more companies such as retreating doors, closing doors, running gates, etc. The scandal has been widely spread, but it cannot be denied that the Chinese LED industry is laying a solid foundation and is making great strides forward.
Gaogong LED editors summed up and counted the “Top Ten Keyword†of China's L ED industry in the first half of 2012, helping the industry to accurately grasp the lifeline of China's LED market.
Policy--"Timely Rain"
Focus on the index: ★★★★★
In the first half of 2012, the intensive introduction of a new round of central and local industrial support policies seems to be a timely rain in the LED lighting industry. Although the industry is still difficult to conceal the "chaos" ills, the frequent policy dividends have caused the entire industry to heat up rapidly.
Since November 4, 2011, the National Development and Reform Commission announced the roadmap for the elimination of incandescent lamps in China, such as the public bidding for LED street lamps and the 12th Five-Year Plan for semiconductor lighting. On May 16, 2012, the State Council decided to arrange a subsidy of 2.2 billion yuan to support the promotion of LED lights and energy-saving lamps.
What excites the industry is that Guangdong Province has responded positively to the call of the state. On May 23, it issued the “Implementation Plan for Promoting the Use of LED Lighting Products in Guangdong Province†to fully popularize LED lighting in public places, all public lighting built by government finance or state-owned capital. In the field, LED products will be used, and the original non-LED lighting products will be retrofitted with LED lighting by the end of 2014.
Then, Qingdao, Foshan, Dongguan and other cities have successively launched consumer subsidies for the civilian LED lighting market.
Civil lighting is the biggest potential market for LED lighting. Under the government's continued favorable policies, GLII expects that domestic LED lighting production will increase by more than 60% year-on-year, which will be the fastest growing year for the LED lighting industry. With the maturity of domestic LED lighting technology, the timing of government subsidies for end consumers is becoming more mature.
Investment--"trajectory" of disorderly competition
Focus on the index: ★★★★
How hot is the LED industry? The government has been motivated by a series of favorable policies. In 2012, the investment boom was higher than the waves. Enterprises may expand their production, or seek vertical integration, or seek cooperation, or broaden channels, or seek financing, or cross-cutting, or transforming... have invested heavily in internal technology or external repairs. Doors, more fruit dealers, tire dealers, shipbuilders and other "outsiders" forcibly entered, there is no accurate statistics showing that the foreign trade into the LED industry accounts for a large proportion, but the low threshold of LED waves affecting people from all walks of life.
However, the negative impact of the investment in LEDs has become more prominent, overcapacity has increased, manufacturers have rushed price wars... disorderly vicious competition has eroded the healthy body of the entire industry.
GLII statistics show that as of the end of 2012, if all LED projects planned for investment in China are 100% put into production, the overcapacity crisis will be further aggravated, especially in the field of LED sapphire substrates and LED chips. How do manufacturers digest this part of the inventory? Looking for cheap clearance in the market, the price war is getting worse. In one year, the price of LED chips has dropped from more than 6 yuan to more than 2 yuan, and the price of downstream LED lamps has generally decreased by nearly 30%, and it is getting closer to energy-saving lamps.
Throughout the first half of 2012, GLII believes that China's LED industry investment pace has slowed down overall, and has gradually become more rational, and has already bid farewell to the era of investment "upstream". Investors can ignore overcapacity, but the stranding of large-scale domestic investment projects has to lead to thinking, the withdrawal of the GCL-Poly Sapphire project, the reef of the Foshan Xurui Optoelectronics project and so on have shaken the industry, but GLII believes that the industry invests in LED upstream The project will be more and more cautious 　
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