The LED street light industry is facing a reshuffle. Enterprises study business strategies

The LED street light industry is facing a situation of reshuffling. The LED industry used to be a pioneer in the domestic energy conservation and emission reduction industry, and its development has been booming. However, according to recent media reports, nearly 100 LED companies in Shenzhen have closed down, and 90% of them are on the verge of loss. The semi-annual financial report released by the well-known LED company Zhenmingli Company shows that due to the worsening economic environment, the customer order quota has generally shrunk. And this is just a portrayal of the development of the entire domestic LED industry facing a cold winter. The short spring of LED The LED lighting industry is a sunrise industry that is the focus of the national energy conservation and emission reduction support. Since 2008, the state has vigorously promoted high-efficiency lighting products, and its market prospects are optimistic for the industry. At that time, the Ministry of Science and Technology of my country first proposed ten cities and ten thousand LED lighting demonstration projects, and subsidized 30% to 50% of the investment increment of LED lighting compared with traditional lighting. The number of cities joining the government program has since ballooned to 42 now. Since the state's subsidy to the LED industry is not limited to the subsidy for LED street lights, there are also high subsidies for the chip production machines upstream of the LED. It is said that for a MOVCD machine, the government subsidy exceeds 3 million yuan. As a result, almost all traditional lighting companies have turned to invest in the LED industry. Zhen Mingli has also joined this investment wave, and received 43.1 million yuan in subsidies from domestic local governments in the first half of this year alone. The 19 MOCVD equipments (LED epitaxial wafer production equipment) currently owned by Zhenmingli are all put into production, and the monthly output of LED epitaxial wafers is as high as 55,000 pieces. It is reported that in order to complete the plan of replacing street lamps with LED lamps, local governments have invested heavily. In addition to the huge product orders for Sanan Optoelectronics, the Wuhu Municipal Government has more than 500 million yuan in procurement subsidies. Shenzhen proposes to provide 10% subsidy according to the price of lamps and lanterns for enterprises participating in LED demonstration projects of government investment projects, and discount interest for 3 years, and to enterprises undertaking enterprise investment projects of LED application demonstration projects, subsidize 30% of the price of LED lamps . But this investment frenzy does not mean that domestic LED companies already have sufficient technical reserves and market channels. An unnamed researcher from the Academy of Social Sciences said that domestic households basically use ordinary fluorescent lamps and rarely use incandescent lamps above 60 watts. Therefore, the elimination of incandescent lamps to promote the development of the LED lighting industry is just an illusory LED market expectation. . As for LED lighting products, there are only a few large LED companies that are highly subsidized by the government. But now the entire industry is crazy about investing in the LED lighting industry. It is reported that the domestic LED industry has the characteristics of not agglomeration of industrial resources, small and scattered enterprises, and low concentration. Many companies have repeated construction at a low level. Due to the deterioration of the market environment, the order quota of LED customers has generally shrunk. The LED production capacity is obviously oversupplied, and the market price is rapidly declining. In the face of disorderly investment and repeated construction in the domestic LED industry, Li Jinmin, chief expert of major semiconductor lighting projects and director of the Institute of Semiconductors of the Chinese Academy of Sciences, once pointed out that the large-scale disorderly investment in the LED industry will not last for a long time, and when the entire industry develops At a certain stage, the domestic semiconductor lighting industry will inevitably be reshuffled. In the next three years, this industry will inevitably have a number of outstanding enterprises with advanced technology to stand out and become leaders in the LED industry. At present, due to the optimism of the market prospects, the domestic investment in the LED industry has increased by more than 30% every year. However, there is a serious phenomenon of quick success and instant benefit in the entire industry. Although many companies invest heavily in the LED industry, few companies have really settled down and seriously engaged in the research and development of LED product technology. Many companies are only satisfied with purchasing advanced equipment and becoming a foundry company in the packaging process. , earn meager foundry fees, and let the bulk of the profits be controlled. In fact, as a key industry in the energy-saving and emission-reduction industry, LED lighting not only involves basic materials and chip technology, but also involves fields such as light, electricity, heat, chemistry and equipment. It is a typical complex system that integrates multiple disciplines. project. Some domestic packaging companies engaged in the production of LED products may use Taiwanese epoxy resins, American silicone resins, and Japanese companies' phosphors in the entire production process. The packaging structure imitates Philips Lumileds or Ketax or Osram. The entire industry chain is relatively long. Although the domestic LED industry is facing various difficulties, LED lighting products have excellent energy-saving effect and long service life. Not only do a large number of domestic companies invest in LED, foreign giants Panasonic and Philips also intend to occupy a leading position in the Chinese and international markets. Matsushita Electric was launched to occupy 10% of the global market share in the global market size of 2.6 trillion yen by 2015. Now that the domestic LED industry has entered a critical period of development, technological upgrading is inevitable. After the large-scale expansion in the previous two years, the supply of chips this year has exceeded demand, and the price has dropped significantly. However, the application market has not really opened up, and the profits of LED enterprises have generally decreased. The industry will enter a reshuffle period ahead of schedule. Vertical integration has become an industry consensus. Wu Shenjun, managing director of GSR Ventures, believes that whoever can integrate vertically in the LED industry will be the big winner, and will be the future GE. At present, it is a challenge that the entire LED industry must face to solve the contradiction between the individual needs of customers and large-scale production. Only by relying on capital ties and industrial integration can local enterprises with independent brands and international competitiveness emerge in the LED reshuffle.