Facing Chinese LED industry issues
2014/12/08
LED products more widely used due to LCD TVs and street lighting, LED has become a popular Chinese-made products, but is very attractive investment. In addition, government support for the industry seems to have an effect. China LED market is expected next year will reach $ 6.9 billion, to reach $ 11.1 billion in 2015, 2010-2015 compound annual growth rate of 17.7%.Chinese LED market covers a variety of applications including LED displays, traffic lights, car lights, LCD backlight, mobile phone keypad, digital camera flash, decorative lighting, street lamps and general lighting.
Street will be the largest application areas, this year will reach $ 1.5 billion, is expected to reach $ 1.8 billion in 2012. Due to the large size LCD TV and laptop with LED, LED backlighting market will usher in strong growth in 2015 sales will grow from $ 713 million this year to $ 1.8 billion.
Medium and long term, to drive the LED industry growth of a new factor will be the general lighting market. In view of reducing carbon emissions, global trends, demand in China for LED general lighting will be very strong. LED low power consumption, and environmental protection. IHSiSuppli company's data show that shipments of LED in general lighting will account for 15.5% of the overall LED market.
Moreover, the Chinese LED manufacturers can obtain adequate funding from local and central government, which will help domestic enterprises occupied most of China's LED market. So far, there are some local governments to provide generous subsidies for the purchase of MOCVD equipment LED chip manufacturers, and even up to 70% the proportion of each machine is equivalent to about $ 1.5 million subsidy. In addition, the government also provides tax and utilities incentives to encourage businesses to invest in the domestic LED industry, which for local businesses is also very attractive.
Despite the relatively prosperous LED in China, but compared with other US and Taiwan, mainland China's LED industry is still in its infancy. China is lagging behind in this area, as well as the reasons behind the lack of technical capabilities, including experienced management personnel and research and development engineers. In addition, China's lack of intellectual property rights in the core areas and areas upstream LED wafer, etc., is also a serious problem.
