LED "Government Order" Dominated Industry Restructuring "Urgent"

The LED is a LED lighting Ⅲ - Ⅳ aromatic compounds, such as GaAs ( gallium arsenide ), GaP ( Gallium Phosphide ), GaAsP ( gallium phosphorus ) and other semiconductor formed 's .

Relying on the support of local governments in recent years, the domestic LED industry throughout an unprecedented investment boom . However, in view of the prospects for industrial development to support government policies , most companies had to face losses LED difficulties , and even triggered a heated meeting of the recent wide closures . Because the entire LED industry is currently caught in a structural overcapacity crisis two years ago, around the introduction of competing investment planning and construction in LED production capacity has far exceeded the actual market demand .

Insiders said that the lack of upstream core technologies , China LED companies get together in the low-end multi- domain package, application , etc., and the resulting product homogeneity serious problems , coupled with declining purchasing power of U.S. and European markets , except for some high-end products outside , the overall downward trend in orders .

Dominated local government orders to take care of local businesses

" 95% of the domestic LED lighting market is the government orders. " insiders said. Information from public view , government orders basically tun mode. Headquartered in Xiamen Sanan Optoelectronics , there are projects in Huainan City , LED lights orders two cities fall Sanan Optoelectronics ; BDO Runda headquartered in Zhuhai, also announced the end of November to get Zhuhai 30,000 LED street light project . Wuhu while gathered three safety optoelectronics, BDO Runda two giants , so Wuhu LED lights project orders two sharing .

The first three quarters , A-share listed companies, 20 LED only seven business growth , leading enterprises Sanan Optoelectronics maintain profitability , but net profit growth of 14% lower than a year earlier. Next year reshuffle to be drained at least half of the company , which is the period of time within the LED industry mutual spread judgment.

It is understood that entering 2013 , LED product prices keep falling , some LED lighting products have been close to the price of compact fluorescent lamps , which initially with the alternative advantages this objective and stimulating market demand. Related companies admitted that from the current situation , their performance better than in 2012 , but still expect the Government to give this emerging industry for more subsidies. The idea that there are currently less than 200 billion yuan in the LED industry , there have been more than 5,000 enterprises , concentration is low . In the future , want to upcoming industry mergers and acquisitions " ready ."


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