95% of the domestic LED lighting market is still government orders

The LED industry is still in severe form in 2013 The overcapacity of LED is a matter of the past two years. As a branch derived from the semiconductor industry, LED was not a big industry before, and was mainly used in small-sized mobile phone backlights and other fields. 2009 was a watershed year. Samsung pushed LEDs into the field of TV backlighting. Each TV consumed hundreds of LEDs, and the annual sales volume of LCD TVs exceeded 100 million, causing the LED market to explode. The number of MOCVD is growing rapidly. In 2011, half of the MOCVD equipment in the world was sold to China. But the market is not growing as fast as expected. There are many domestic LED companies, most of which are concentrated in the downstream packaging field of the industry. This year, there are more than 1,700 LED packaging companies with mass production scale, accounting for 80% of the world. After 24 months, how popular will LED chips be? There will be people lining up to order. 95% of the domestic LED lighting market is government orders. Industry insiders said. Judging from public information, government orders are basically on a first-come-month basis. San’an Optoelectronics is headquartered in Xiamen and has projects in Huainan City. The LED street light orders in these two cities fell to San’an Optoelectronics; Dehao Runda, headquartered in Zhuhai, also announced at the end of November to obtain 30,000 LED street lights in Zhuhai City. Wuhu also gathered the two giants of Sanan Optoelectronics and Dehao Runda, so Wuhu's LED street light project orders were equally divided between the two. LED street light companies struggled in 2012 In the first three quarters, only 7 of the 20 A-share listed LED companies recorded growth in performance. The leading company, Sanan Optoelectronics, remained profitable, but the 14% growth rate of net profit fell compared to the same period last year. At least half of the companies will be dumped in the next year's reshuffle. This is a judgment that has been circulated in the LED industry during this period of time. The photovoltaic industry will not fall into the same dilemma as photovoltaics. Chairman Wang Donglei is worried about overseas anti-dumping, but at the same time believes that the use of photovoltaics is too dependent on government subsidies, and the LED optoelectronics industry will be market-driven in terms of consumption. For example, LED lighting will account for 70% of official and commercial lighting. Household accounts for 30%. In Wang Donglei's view, the main difficulty of the LED industry is that the production capacity is too fast, and it will take another 24 months for the market demand to start. Wang Donglei believes that Dehao Runda has the advantage of being a latecomer: when we entered the LED industry, the 2-inch production line was very mature, but I decided to go to the 4-inch production line. It took a lot of effort to debug the furnace, but the production cost was 15% to 20% lower. Sanan Optoelectronics also believes that the optoelectronics industry will not fall into the same predicament as photovoltaics. Director Kan Hongzhu said that the national LED market bidding has been launched, and there will be billions of dollars in the market every year. It is expected that the global economy will also pick up in 2014, and the market demand will be released. 100 billion. Photovoltaic is mainly after anti-dumping, the domestic market can not digest, the industry quickly entered a trough. First, LED industry organizations should communicate more between upstream and downstream enterprises to spend the winter together. Second, they should actively help enterprises, especially downstream application enterprises, to deal with overseas lawsuits. In case of anti-dumping, they will actively respond to lawsuits. Kan Hongzhu said that the reshuffle of the industry will take place in the first half of 2014, and next year may be a cold winter year for the industry, but it is a year of opportunity for Sanan Optoelectronics, adjusting the product structure and speeding up the gathering of talents - it is only when the industry is low that it is better to attract top-notch talents. Sanan Optoelectronics is now mainly competing with international manufacturers, and its product indicators do not lose to Taiwan Epistar (the largest LED company in Taiwan). In fact, the layout of Sanan Optoelectronics is unfolding. In November, Sanan Optoelectronics invested in Canyuan Optoelectronics, the top three in Taiwan's LED industry, with cash, becoming the largest shareholder. This year, local finances are tighter than last year, mainly due to the impact of real estate regulation, and the local government's land sales revenue has dropped significantly. Local finance and the prosperity of the LED industry are not only linked to financial subsidies, but also government orders. It is reported that not only the location of the production project, but also Dehao Runda has signed framework agreements for LED street light projects in many cities, with a large total amount; but it can be seen in the workshop that the lighting production line of Dehao Runda is not running at full capacity. In the workshop for inspecting LED street lights, the person in charge of the workshop told reporters that the inspection items hanging on one wall were less than 1/4 of the full load. Many companies expect the launch of new markets LED street lights have received many orders but dare not go too fast, for fear of affecting cash flow. Wang Donglei said. Government orders are often slow to pay back. In the cold winter of the LED industry, Wang Donglei believes that cash is king. If the payment is only slow, Wang Donglei may not have so many scruples, and he is still worried about bad debts. Wang Donglei's observation point is whether the real estate market is picking up, and the second is the launch of the LED lighting market for office buildings and shopping malls next year. The price of LED lamps is much higher than that of energy-saving lamps and incandescent lamps, and the ex-factory price of each is more than 30 yuan. Wang Donglei said that the launch of the commercial lighting market is mainly based on three points: First, due to technological progress, the cost of LED lights will continue to decrease and the price will continue to drop, and the second is longer life. You switch; the third is to save electricity. Calculated by turning on the light for 12 hours a day, the electricity bill saved is expected to be equivalent to the price of the light in one year. Although there is a delay in the start of market demand and the original idea, Wang Donglei still looks forward to the future of the industry with enthusiasm: LEDs for TVs are becoming more and more common. When 70% of TVs use LEDs, all the MOCVD furnaces in the world are currently insufficient. The launch will increase the market demand by more than 10 times. Regardless of whether it is Wang Donglei or Kan Hongzhu, they are both faster than others. The research and development speed is fast, and the new product launch speed is fast, so the gross profit is high; the main products are not only facing excess production capacity, but also continuously declining gross profit. What Sanan Optoelectronics and Dehao Runda want to do is to become bigger in the cold winter, to be technologically advanced, and to wait for the dawn of 2014.