As China's urbanization process accelerates, low-carbon economy and green environmental protection concepts continue to enter the hearts of people, the semiconductor lighting industry has emerged. In the past two years, it has become a hot industry among listed companies in Guangdong, and Guangdong has also become a domestic LED lighting industry. One of the most developed areas in the industry. Under the dual background of policy support and market demand, the LED industry in Guangdong has seen explosive growth.

Competing to enter the capital market In the past two years, the average growth rate of Guangdong's LED industry output has exceeded 40%. In 2010, the LED industry in the province achieved an output value of 85.3 billion yuan, nearly 3,000 companies, and the industrial scale accounts for about 50% of the country's total output value and scale. Ranked first in the country. In 2011, the scale of LED industry in Guangdong Province reached 150 billion yuan, and the output value and scale continued to rank first in the country. It is expected that by the end of 2012, the LED industry in Guangdong Province is expected to become an emerging industrial cluster with an output value exceeding RMB 300 billion.

In the face of international and domestic blowout prices, domestic and overseas investment and mergers have accelerated the integration of upstream and downstream businesses, and traditional lighting companies, state-owned capital, and private capital have swarmed into the LED investment boom.

In the past two years, many LED concept companies have successively tapped the capital market gates. Guangdong Guoxing Optoelectronics, Hongli Optoelectronics, Qinshang Optoelectronics, Lehman Optoelectronics, Ruifeng Optoelectronics, Zhouming Technology have also been listed on the Shenzhen Stock Exchange. There are about to land on the small board of Zhongshan Mulinsen Electronics. Among the listed companies, traditional lighting companies involved in the LED industry include Foshan Lighting, Fangda Group, and Snow Wright; Guangdong LED, Guangdong Bahrain, BDO Runda, Shenzhen Konka A, Han's Laser, which may be used as backdoors, or It will enter the LED industry in various ways such as mergers and acquisitions, restructuring, or capital increase. There are also dozens of LED companies that have completed the joint-stock system transformation and are also ambitiously waiting for opportunities to enter the capital market.

Mr. Zhao of the Invest Securities Department of GF Securities commented that: Guangdong's LED companies seeking to go public will not only show their strong desire to grow bigger and stronger, but also consider the company itself to withdraw from the chaos. After the listing, the company will have more financial strength and expansion power. Under the impetus of capital, big fish will eat small fish. The LED industry cluster effect will gradually appear in the Pearl River Delta region.

One hundred disputes flow Pearl River Delta so far, Shenzhen, Dongguan, Foshan have LED industry as a pillar industry development. Shenzhen issued the "Shenzhen LED industry development plan", Dongguan introduced the "Dongguan City to promote LED industry development and application of demonstration projects", Foshan also the new light source industry as one of the key development industries.

Judging from the development of industrial regions, LED industry in Guangdong is most concentrated in Shenzhen, followed by Guangzhou, and other more concentrated areas include Zhuhai, Foshan, Dongguan, Zhongshan, and Huizhou. Among them, Shenzhen LED industry has a strong R&D capability and has become the world's largest production and supply base for solar LED lighting, the world’s major production and supply base for LED backlights, and the largest domestic LED display production and supply base, LED packaging and LED lighting. Lamps are the major domestic production areas. The number of LED companies in Guangzhou is small, but the degree of concentration is high, and they are highly capable of being driven. They are at the high end of the domestic LED industry and have a certain degree of innovation capability and potential for sustainable development.

Shenzhen Dianye Industry Association president Wang Diantang pointed out that the LED industry in Guangdong Province has shown a full blossoming trend, has formed a relatively complete industrial chain and supporting capabilities, clustering effect has emerged. More and more companies, especially upstream chip giants who master core technologies, have settled in Guangdong. The settlement of these upstream chip giants further stimulated the development of supporting industries in the middle and lower reaches.

Elimination of strong trend to remain strong In many cities and districts in Guangdong, LED industry will be developed as a pillar industry. Everyone wants to have a share in the LED field. There are more than 200 LED companies in Dongguan alone. Most of the projects launched were concentrated in the downstream packaging industry, and the signs of repeated construction have already begun to appear. This shows that although the Guangdong LED industry has formed an industrial chain of epitaxy, chips, packaging and application, it is not balanced in the development of each link, showing a pattern of epitaxial, weak chip links, and a strong package and application link.

In the upstream areas of epitaxial wafers and chips, due to the lack of core technologies, it is difficult to achieve major breakthroughs in the short term. At present, in the LED industry, the excess production capacity of the upper sapphire substrate is the most serious; the production capacity of the midstream packaging industry is relatively surplus, because the risk resistance ability is the worst, and industry insiders expect that nearly 10% of the companies will be eliminated by the end of the year; while the overall performance of the downstream LED applications is the highest. it is good. This can also be viewed from the Guangdong LED concept listed company's stock price performance.

On May 1, last year, the five LED standards developed by the National Lighting Electrical Standardization Technical Committee began implementation. According to industry sources, after the implementation of the national standard, the cost of each product will increase by 8 yuan to 10 yuan, while the profits of some products in the market will be only 3 yuan or less. This also means that if the standard is strictly implemented, a large number of LED companies will be eliminated.

Li Xuliang, chairman of the Guangdong LED Industry Alliance, pointed out that in the replacement of new incandescent light sources, LED development prospects are quite broad. However, with the market competition mechanism playing a role, those workshop-type enterprises that do not have strength and market positioning are bound to be eliminated.

According to Wang Donglei, chairman of BDO Runda, the current semiconductor lighting industry has faced many problems, such as a large number of companies, a small scale, a lack of technological innovation capability, and a majority of companies focusing on the low end of the market and repeated competition at a low level. The excessive price is still a "stumbling block" in the process of LED popularization. Technological upgrading, substantial cost reduction, and continuous improvement in product penetration rate will be the LED industry's future development choices.