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The price war caused by overcapacity is fierce. The decline in profitability has led to the collapse of the LED industry, the suspension of production, and the shift in production. LED-related companies preparing for a meal have not been able to eat the "big cake".
The Hunan Provincial Economic and Information Commission recently held a provincial LED production and demand matchmaking meeting, and the participating enterprises have suffered a lot.
Yiyang Yiyuan Optoelectronics Co., Ltd. is an enterprise mainly engaged in LED chip packaging and lighting production. Hu Qinghua, the person in charge of the company, introduced the company's small-power LED in-line lamp beads, which was originally sold more than 90%. Basically, no one wants goods this year. "Even if there are a small number of individual customers, the price is below the cost price." . The company's low-power packaging line is currently in a state of discontinuation.
Zhang Qingliang, assistant general manager of Hunan Minghe Optoelectronic Equipment Co., Ltd. said that there are fewer supporting enterprises in the province and the cooperation between the industrial chains needs to be resolved. “The company's raw materials and key equipment are less than 10% in the province. Others must be purchased from other provinces, and the company's cost is large.â€
Sunshine Fuyuan Technology Company from Shenzhen said that the industrial agglomeration effect of Hunan is not obvious, and the production cost of the enterprise is too high. At the same time, the technical standards of the LED industry are missing, which affects the quality and grade of the products, and consumers have insufficient trust in the products.
The person in charge of Hecheng Optoelectronics Technology Co., Ltd. said that the cost of LED lighting is about 10 times that of fluorescent lamps. The cost is too high and it is not easy to popularize.
A common confusion reflected by the participating companies is that the foreign market has shrunk sharply due to the debt crisis in Europe and the United States. In the domestic market, people's awareness of LED products is not enough. It is difficult to promote and apply in ordinary households. The progress of the project is not satisfactory, and the domestic demand for LED products is weak.
"Hua Lei Optoelectronics" to build a development model of the entire industry chain
Under the background of the general depression of Hunan province and even the whole country, Xiangneng Hualei Optoelectronics Co., Ltd., located in Zhangzhou, has become a bright color in the winter of LED industry: in 2012, its operating income exceeded 300 million yuan, an increase of 67%; The profit is more than 30 million yuan.
What is the magic of Hua Lei Optoelectronics against the trend? "Building a development model for the entire industry chain!" Mao Zili, general manager of Hualei Optoelectronics, said in an interview.
Mao Zili introduced that Hualei Optoelectronics entered the LED industry with a relatively high starting point. At the beginning, it directly entered the high-end epitaxial wafer and chip manufacturing field of the industrial chain. At present, it has 32 world-class MOVCDs and matching chip production lines and corresponding testing equipment. The company has become the only LED epitaxial wafer and chip production base in Hunan Province, and its comprehensive competitiveness ranks fourth in the domestic counterparts.
In addition to the upstream products of the large LED industry, Hualei Optoelectronics is also actively expanding to the downstream of the industrial chain such as electronic displays, lighting, and automotive lamps.
"It's better to extend to the downstream application areas of the market space than to be close to the upstream of the profit margin." Mao Zili introduced that the LED industry's “looking head†is to extend the industrial chain and form a scale effect; thus, it can reduce costs and form new profit growth points.
To this end, Hualei Optoelectronics put forward the idea of ​​“walking with multiple legsâ€: not only producing chips, but also producing lamps, and also engaged in product application engineering construction.
Hualei Optoelectronics took advantage of upstream chip manufacturing, acquired two large chip packaging companies, and established a daily crystal lighting technology company specializing in LED application engineering, expanding the industrial chain to LED lighting engineering consulting, design, construction and service. Covers the entire industry chain of LED chip manufacturing, packaging and application.
"Industrial winter, survival of the fittest is essentially a prelude to the spring of LED industry!" Mao Zili introduced, in order to give a hand in the field of LED applications, Hualei Optoelectronics is in the process of building two production and development including LED upstream, middle and downstream industrial chain. The base formed a relatively influential LED industry cluster in the country, and built a national-level photovoltaic industrial park in Zhangzhou in three years.
The faucet is raised and the agglomeration effect appears. Praxair Industrial Gas Company, one of the world's top 500 companies, established a nitrogen station in Zhangzhou, which is specially designed for Hualei Optoelectronics. Foshan Huate Gas Company established an ammonia gas station in Zhangzhou, which is also equipped with Hualei Optoelectronics. In addition, the province's optical polishing, cutting equipment manufacturers and monocrystalline silicon production companies have interacted with Hualei Optoelectronics, hoping to form a matching relationship with it.
Taking lighting application as a breakthrough to stimulate industrial development
On March 20th, near the 20km mountain road near the Guidong County of 106 National Road, when night falls, hundreds of LED scenery complementary street lights will shine brightly. Looking from afar, it is like a long dragon, lingering in the mountains. This is one of the LED lighting application demonstration projects that Cangzhou City is vigorously promoting. It is built by Rijing Lighting Technology Co., Ltd. under Hualei Optoelectronics.
Benefiting from the demonstration project of semiconductor lighting application, Rijing Lighting Technology Co., Ltd. was established less than half a year ago, that is, it has obtained nearly 100 million LED street lighting projects in Zixing, Yucheng, Guiyang, Anren and other counties. For Hua Lei Optoelectronics, which is in the winter of the industry, it is tantamount to sending charcoal in the snow.
Luo Hongbing, head of the High-tech Section of Shengzhou Science and Technology Bureau, said that Zhangzhou has a good LED industry foundation and has a number of LED high-tech enterprises such as Hualei Optoelectronics and Delta Electronics. In 2012, the output value of the semiconductor lighting industry in the city reached 1.5 billion yuan. He believes that as long as the opportunity is seized, the LED industry can be made bigger.
In fact, Ganzhou City attaches great importance to the LED industry, and uses LED lighting applications as a breakthrough to stimulate industrial development. Last year, the city was approved as a pilot city for the “Ten Cities and Ten Thousands†semiconductor lighting application engineering pilot project of the Ministry of Science and Technology. Taking this as an opportunity, Cangzhou City plans to install 30,000 LED street lamps from 2012 to 2014, and use LED green lighting for landscape lighting and community lighting to encourage the use of LED lighting products for public, commercial and home indoor lighting, and strive for 2014. The output value of the LED industry will be increased to 5 billion yuan.
To this end, the city set up a special leading group, each year to arrange funds from the city maintenance costs, special for LED street lights pilot demonstration and promotion and application of subsidies and incentives.
The application of LED lighting products in Zhangzhou has become a common practice. At present, LED lighting demonstrations have been implemented in the urban areas of the city, as well as in the streets of Yizhang, Zixing, Anren, Linwu, Guiyang, Yucheng, Guidong, Yongxing and other places such as street lights, landscape lights, and courtyards (indoors). At present, nearly 600,000 LED street lights, landscape lights and interior lights have been newly installed.
In order to promote the wide application of LED energy-saving products, the National Development and Reform Commission, the Ministry of Science and Technology and other six ministries jointly issued the "Semiconductor Lighting Energy Conservation Industry Plan" at the beginning of this year, and proposed a series of specific safeguard measures and incentive policies, including the gradual expansion of financial subsidies promotion, timely Incorporate LED lighting products into subsidies and so on.
Xie Haiyan, chairman of Hualei Optoelectronics, believes that the use of contract energy management (EMC) mode, or permission to open up a new way for LED lighting promotion. LED lighting applications, the initial investment is large, it is difficult to promote; if the initial investment of LED production enterprises, with the savings of electricity costs to offset the investment costs, such promotion should be easier. Perhaps this will open a road to spring for the LED industry that is in the cold winter. 
Hunan LED industry is trapped in common confusion Hualei Optoelectronics builds a full industrial chain model
LED industry is in common confusion