China's LED industry growth is too fast or will bring losses


The high-efficiency and low-energy green light source of LED is familiar with the opening ceremony of the Olympic Games. An emerging industry with a market capacity of up to 50 billion yuan has also surfaced. However, experts revealed to reporters yesterday that the LED shocking performance of the Beijing Olympic Games is difficult to conceal the loss of China's LED: although the Beijing Olympic Games uses hundreds of millions of LEDs packaged and produced by Chinese companies, the power chip with the highest gold content in the value chain. But it is basically imported from abroad.

Insiders in the semiconductor industry said: At present, the domestic LED market is growing rapidly. If the core competitiveness problem is not solved, the market speed will bring losses to the Chinese LED industry. Due to the lack of key upstream technologies, the core interests of the entire industry are declining and opportunity costs are rising.

According to the latest data of China's semiconductor lighting industry released by China Semiconductor Lighting Network, the average annual demand for LED packaging products in 2007-2009 is 46.6 billion yuan. Behind this 46.6 billion yuan, only red LEDs are used. Domestically, only medium and low-end red LED dies can be made, accounting for only 12% of the market share, while 88% is dependent on imports.

China’s LED industry has just seen the dawn, and it is found that it is still in an embarrassing situation in the fringe economy. Chinese LEDs want to get rid of the fate of making wedding dresses for people, they must break out of the upstream, but now the international economic situation is turbulent, how easy is it?

A few days ago, Jinshajiang Venture Capital and Aurora Capital Capital's two venture capitalists moved against the trend and injected Beijing Taishi Corelight Technology Co., Ltd. with US$30 million.

Informed sources also revealed that many domestic LED manufacturers also expect to invest in Taishi Xinguang, in order to enter the industry upstream to strive for a more favorable position in the future competition. At this point, China's LED industry has a basic and complete industrial chain, and initially formed the Pearl River Delta, the Yangtze River Delta, the North, Jiangxi and Fujian regions, and Beijing will become a major town for research and development.

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