LED industry speed up the enterprise will receive policy red envelope

From January to July 2011, the price of 2-inch sapphire substrates dropped from the highest of 35 US dollars per piece at the beginning of the year to the current 13-15 US dollars per piece, with an average decrease rate of more than 50%; the average price of LED chips was reduced by 25%; the average LED package price The price cuts 23%; the average price reduction for LED applications also reached 21%. The price changes of different types of products are quite different, and the price drop of some light strings is even as high as 75%.

China's LED industry began to rise in 1990. From 1996 to 2000, as many small and medium-sized enterprises entered the industry, the internal competition in the industry gradually increased, the product prices fell sharply, began to develop steadily in 2001, industry association statistics, the whole year of 2009 The output value of domestic LED display application products reached 14 billion yuan, of which full-color display application products reached 6.5 billion yuan. In 2010, the prosperity of the LED industry was high, attracting many investors to enter, but with the worsening debt crisis in Europe and the impact of domestic tightening policies, the vast majority of SMEs faced a crisis of survival.

According to statistics, in the first half of 2011, the LED industry signed a contracted investment of 118.498 billion yuan, a year-on-year increase of 26%, but the downstream market has apparently not opened up. The company's LED products rely more on the local government's municipal engineering to digest, the expensive price makes the civilian use is still out of reach, and affected by the weakness of the international market, the export of LED products also suffered poorly. At present, most of the 1,300 LED companies in Shenzhen are small and medium-sized enterprises. It is impossible to survive. The industry collapse has begun and the industry is facing a cruel reshuffle. At present, despite the rapid growth of LED, Shenzhen LED companies face bankruptcy or are liquidated every day.

Policies to promote energy conservation and emission reduction, and leverage the Led Lighting application market are conducive to the medium and long-term development of the industry. The fourth quarter of a number of guiding policies on semiconductor lighting is expected to gradually introduced. It is reported that the Ministry of Finance is in conjunction with the Development and Reform Commission and other competent authorities, plans to subsidize semiconductor lighting products and is expected to be launched in the fourth quarter. In addition, the Ministry of Science and Technology's guidance on implementing measures for the “Ten Cities and Ten Thousand Peoples” is also expected to be released in the fourth quarter.

According to the forecast of the National Development and Reform Commission, during the “12th Five-Year Plan” period, the LED industry is expected to achieve a quadrupling target. By the end of 2015, China's LED lighting penetration reached 20%. In the industry, it is generally more optimistic. It is estimated that by 2015, the penetration rate of outdoor LED lighting in China will reach 60%-80%, the penetration rate of indoor and commercial LED lighting will reach 25%-30%, and the penetration rate of indoor home LED lighting will be 5%- At 10%, the overall penetration of LED lighting in the Chinese market will reach or even surpass 20%.

With the gradual entry of LED products into green lighting, the outbreak of the downstream LED lighting market will drive the large demand for LED sapphire substrates, and sapphire substrate manufacturers such as Toray Electronics and Crystal Optoelectronics will benefit significantly.

It is understood that the production process of LED products can be divided into five stages: substrate manufacturing, epitaxial wafer production, chip production, chip packaging and LED product production. Among them, the substrate plays a role of carrying and fixing in the LED chip, and the market share of the sapphire substrate is as high as 92%.

Topology Industry Research Institute expects that the LED lighting market in Mainland China will achieve a major outbreak in 2012. The market size will increase significantly from US$2.8 billion in 2011 to US$8 billion, an increase of 185% over the same period of last year. By the second half of 2012, the penetration rate of LED lighting in mainland China will exceed 30%, reaching around 31%.