LED market is in disorderly competition, improving product quality is imminent

As the world's high-profile new generation of light source, LED is called the most promising green lighting source in the 21st century because of its high brightness, low heat, long life, non-toxic, recyclable and other advantages. In recent years, the global LED market demand has also been expanding, and the market prospects have been very good.

Big price war
However, it is this kind of market potential that has driven many companies to join the LED industry and grab this cake. The reporter was informed that in 2011, the output value of Guangdong's LED industry alone reached 151.5 billion yuan, which has doubled for two consecutive years. Behind the seemingly prosperous market, it has laid the groundwork for overcapacity.

Due to the impact of the European debt crisis, from the second half of last year, the global LED market faced a weak demand situation, coupled with rising raw material costs, in the fierce market competition, many LED companies have gone bankrupt and closed down. In order to survive, some enterprises will not hesitate to lower prices and wage wars at the expense of product quality. Some of them used very inferior raw materials for low-cost consumption, which seriously affected the quality of LEDs, and all of these results eventually exacerbated the disorderly competition in the LED market. Recently, the Quality Supervision Bureau, the State Administration of Inspection and Quarantine, and the Industry and Commerce Bureau have started to conduct quality inspections on LED lighting products, energy-saving lamps, road lighting, fire emergency lamps and electric light sources throughout the country. The results of random inspections have made people stunned: LED lighting products are qualified. The rate is only 51%.

The industry will pick up next year
Faced with the overcapacity of the LED industry and the low price competition, industry insiders pointed out that the future development direction of the LED industry will inevitably lock in new and high-quality LED lighting fixtures. Enterprises that cannot see this point will be eliminated sooner or later. thing. Tang Qishen, a senior engineer at Shanghai Zhongjing Micro Gas Co., Ltd., admitted that the LED market is not in a downturn, and the demand has always existed. The key is that many domestic companies have not grasped the key points and have not grasped the market demand. The cost of production for many companies can be solved by improving the level of technology and operation.

But some insiders pointed out that it is not easy to master the real core technology. For example, the key equipment for LED products is MOCVD. Only through it can key technologies be completed. However, the current situation is that such equipment is mainly produced by several large companies in the United States and Germany. "High-end technology cannot enter, and foreign transportation is coming in. Backward equipment, this is also the main problem in this industry." Ge Gangru, deputy general manager of Beijing Bangliancheng Technology Co., Ltd. said.

However, some companies are optimistic about this. As early as the end of 2011, Wang Donglei, chairman of Dehao Runda, said that the price/performance ratio of LED lighting products will compete with energy-saving lamps in the next 24 months, and market demand will also erupt. . Recently, the head of investor relations of Dehao Runda has been confident in the face of the media's doubts: "The question of the previous media is entirely due to the fact that the LED industry is not well understood. At present, the domestic LED industry has already been in production capacity and technology. Close to the world's advanced level, the future is worth looking forward to." The person in charge said that the company has been stepping up to build a business model of the entire industry chain, operating activities from the top of the epitaxial chip to the sales terminal.

The industry said that the domestic LED industry is currently in the cold winter before the recovery, LED companies are no longer simply from the original pursuit of quantitative development, but the pursuit of quality development, it is expected that this industry will pick up next year.

(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)

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