China's LED industry will gradually expand

China is a major country for the production of LED lamps. In recent years, with the widespread application of the LED industry in the world, China's LED lamps have also grown rapidly. According to the survey of major domestic LED lighting export companies, the main reasons for the rapid and rapid growth of China's LED lamps in recent years are: First, the development of the domestic market is currently relatively not very mature; Second, from a global perspective, many countries are stepping up Legislation to encourage the use of energy-efficient light sources. At the same time, as the development of the LED industry not only has a strategic driving role in the lighting and semiconductor industries, but also triggers a series of changes in consumer electronics such as home appliances, automobiles, and mobile phones, the governments of the world are constantly increasing their support.

In 2012, the good situation of China's export of LED lamps was also due to the absolute advantage of the low price of raw materials and labor. Most of the products were exported to Europe, South Africa, the Middle East, and Southeast Asia, and the export volume grew rapidly. In addition, compared with traditional lamps, the profits of LED lamps are higher by about 30%, and the profitability of enterprises is relatively good. Therefore, more and more companies are participating in the flood of LED export competition.

From the perspective of major products, China's exports are still based on packaging and application products. After a period of exploration, domestic LED lighting companies have been very active in the international market, and some outstanding companies have emerged. Most of the exporting countries are the United States. , Germany, the United Kingdom, the Netherlands, South Africa and the Middle East and other countries and regions.

Last year, China's export of LED lamps increased substantially from 2010 to 2012, China's LED lamp exports maintained an annual growth of more than 30%, export prices have also increased substantially year by year. In 2012, the export value of China's LED lamps reached US$5.87 billion, the export increased by 30.52% year-on-year, and the number of export lamps reached 487 million sets, which still showed a rapid growth trend.

Another reason for the rapid growth of China's LED exports is that foreign markets have received a high degree of awareness of environmental protection, and many foreign markets have seen a large number of LED home lighting (using LED as the main light source). In addition, compared with China, overseas markets are even more profitable and have shorter payback periods.

China's major export markets for LED lamps are Europe, Asia and North America. In 2012, China's LED lamps exported to Asia, Europe and North America, the sum of the sum of the three continents close to 90% of the world's exports, of which the European market accounted for more than one-third of China's exports of LED lamps, as the most important market. In addition, this year's export of LED lamps to Africa has grown faster than the same period last year, with a growth rate of more than 50%.

From the point of view of domestic export provinces and cities, the main provinces and cities for the export of LED lamps in China are Guangdong Province, accounting for about 40% of China's exports, but the quality of the products needs to be improved. Guangdong Province is a major province of LED lamps and a major exporter. In 2011, the LED output value of Guangdong Province has reached approximately 150 billion yuan, accounting for 70% of the country and 50% of the world, and has grown at an annual rate of doubling.

The scale of China's LED industry is gradually expanding China's LED industry is concentrated in the downstream applications. The LED industry chain includes epitaxial growth and chip fabrication, packaging and applications. The upstream LED chip manufacturer first carries out metal vapor deposition according to the needs of the LED element structure, and then performs photomask etching and heat treatment on the epitaxial wafer and fabricates the metal electrodes at both ends of the LED. The substrate is then thinned, polished and then cut into small LED chips. Midstream LED packaging refers to the process of enveloping LED chips and brackets with materials such as epoxy or silicone; downstream applications refer to the use of packaged LED devices for the production of various applications such as light strips and downlights. , spotlights, car lights, backlights, displays, etc.

Upstream: In 2012, China's LED epitaxial chip industry reached 7.2 billion yuan, an increase of 20% from the 6 billion yuan in 2011, mainly due to the fact that the average price of LED chips dropped by more than 60% from 2010 to 2012.

Middle reaches: In 2012, the size of China's LED packaging industry reached 39.7 billion yuan, an increase of 24% from 32 billion yuan in 2011. In 2012, the average price of LED light-emitting devices in China decreased by more than 30%. The rapid decline in the price of packaged devices has prompted packaging companies to develop products with high profitability and demanding applications.

Downstream: China's LED application industry reached 159 billion yuan in 2012, an increase of 37% year-on-year. LED application has become the fastest growing link in the upstream, middle, and downstream industrial chains. China has become the world's leading LED application product production base. In addition to LED large-size backlight products, more than 65% of LED application products in the world are produced in China in 2012.

China's LED lighting manufacturers have obvious advantages in cost competitiveness. The scale of the industry has been expanding year by year and it is very popular in the international market. After more than 30 years of development, China's LED industry has initially formed a relatively complete industrial chain. After experiencing the steps of buying devices, buying chips, and buying wafers, the LED industry has initially achieved the autonomous production of epitaxial wafers and chips.

At present, there are more than 500,000 people engaged in the LED industry in China, more than 20 research institutions, and more than 8,000 enterprises, including about 50 upstream companies, about 1,000 packaging companies, and about 7,000 downstream application companies.

China's LED exports account for a large share of the world market, especially in recent years, showing an increasing trend year after year. According to research and analysis, China's advantage of low prices for raw materials and labor is the main location for procurement of LED products in countries around the world. Currently, only a few countries such as the United States and Japan can compete with China's LED export volume. With the continuous expansion of the scope of global LED promotion, market competition has become increasingly intense.

China's LED lighting companies should be alert to the impact of international trade (quotations market) friction. With the rapid growth of China's LED lamps and lanterns exports year after year, the export between the same industry is becoming increasingly vicious and low-price competition. After the international market becomes saturated, it is bound to adopt trade sanctions against China's LED industry such as anti-dumping and countervailing, which should cause China's LED manufacturing enterprises. The vigilance.

Recently, the United States UL organization is working on a series of safety assessment standards involving LED products. Technical barriers encountered in export trade have been common in the lighting industry. It is undoubtedly another serious blow following the export pressures of RMB appreciation, export tax rebates, raw material prices, and many other export pressures.

Due to the large gap between the quality of China's LED lamps and the developed countries in the world, there are still hidden concerns about exports. All along, China’s LED has dominated its product packaging, but it is still far behind developed countries such as Europe and the United States in terms of product development and chip manufacturing. International high-end LED products are produced in China's Taiwan region and Japan, Europe and the United States and other places.

In China, taking the example of enterprises in the Pearl River Delta region, many small and medium-sized enterprises can only mass-produce products with low quality requirements, such as rainbow tubes. Even many companies cannot produce products that meet the certification requirements of developed countries such as Europe and the United States and can only export to Africa. The backward countries and regions such as India and Arabia have made profits at a low price advantage, which is obviously not in line with international development trends and is likely to cause bad influence. In addition, the intensification of export competition among the same industry has led to vicious competition for competing prices, the quality of products is not guaranteed, and many quality compensation claims have been faced. The export reputation has dropped significantly. This has also brought tremendous pressure and hidden dangers to the export of LED lamps and lanterns in China. .

China's LED lamps export growth maintained at 30%

In 2012, the growth rate of China's LED industry exceeded 30%, indicating that the market growth rate remained at a relatively high level, but the entire LED industry's capacity expansion rate is much faster than the scale of growth, and fierce price competition has led to the industry's export situation can not be blind optimism.

Affected by the global economic downturn, the growth rates of markets such as Europe, America and Japan are not as good as those of the domestic market in 2012. In addition, the number of LED export companies in China has soared. The prices of the entire industry chain will also drop sharply, the loan period will be extended, and some companies will have liquidity. Tension, the risk of bad debts surged, which directly led to a sharp drop in gross margins. In addition, for example, LED epitaxial chips and display screens entered the competitive phase-out period, the phenomenon of partial business failures increased, and mergers and acquisitions became more and more obvious. All these risks led to a general decline in orders for LED export enterprises in China this year.

Although faced with the international downturn in the demand situation of Europe and the United States and other markets, but from the Frankfurt International Lighting Fair in the past two years, the Hong Kong Lighting Fair and other world-renowned show learned that foreign merchants are still a strong interest in LED products, China's LED products by virtue of price advantage in Europe and America The market has good development prospects. In summary, China's LED lamps and lanterns exports will maintain the growth rate of nearly three years in 2013, and remain at about 30%, but related companies should pay more attention to changes in domestic and foreign policies and markets.