The low-carbon development model has risen to the height of “national policyâ€. The sustainable low-carbon and green economy has become the trend of the world, and it has undoubtedly brought unprecedented opportunities for energy-saving and environmental protection industries such as LED lighting. The 2010 Low Carbon Development International Forum and LED Summit Forum was held in Shenzhen. Some experts predicted that the LED output value in China will exceed 100 billion this year, which is double the number in 2008. The market is very attractive.
However, this fast-growing industry faces multiple bottlenecks such as talent, technology, patents and standards. The upstream part of the chip and other industries that account for 70% of the industry's profits are almost monopolized by foreign giants. Is LED just another area of ​​production foundry "Made in China"?
Policy to promote the LED industry to become bigger
  At present, not only foreign companies, but almost all domestic lighting companies have begun to get involved in the LED industry. At the same time, under the impetus of energy conservation and emission reduction policies, the “cake†of the LED industry is rapidly becoming bigger. At the end of 2008, the Ministry of Science and Technology and the Ministry of Finance implemented a pilot project of “Ten Cities and Ten Thousand Milesâ€. It plans to promote more than 300,000 LED municipal lighting fixtures in 10-20 cities by the end of this year. In addition, the 2008 Beijing Olympic Games, this year's World Expo, the Asian Games and next year's Universiade have brought about billions of business opportunities to the LED industry.
  Philips China CEO Bi Baijun once said, "China's LED market is only civilian lighting, worth 40 billion yuan." Shenzhen LED Industry Association vice president Wu Shirong also said, "this year, the domestic LED industry will exceed 100 billion, and As the leader in the development of the domestic LED industry, Shenzhen’s output value reached 24.5 billion yuan last year, accounting for one-third of the country’s total."
Shenzhen LED industry has begun to take shape
  Shenzhen is the leader in the LED industry. It is understood that the industry scale of Shenzhen in 2007 is about 15 billion yuan, and the number of employees exceeds 120,000. At present, Shenzhen has become the world's major production and supply base for LED lamps and LED backlights. Yan Shirong pointed out that "Shenzhen has formed a relatively complete industrial chain and has already developed a certain industrial scale." In addition, in April 2005, the Ministry of Science and Technology officially approved Shenzhen to set up the "National Semiconductor Lighting Engineering Industrialization Base" in Guangming New District, also for Shenzhen. The LED industry offers a new gathering space.
  Although the Shenzhen LED industry has developed rapidly, the short board has gradually become prominent. In the "Planning", it is pointed out that the upstream and middle enterprises such as LED chips account for only 1% of the entire industry. According to other data, LED epitaxial wafers and chips account for about 70% of industrial profits, which means that many LED companies in Shenzhen Still relying on low cost, earning very little profit.
  Xie Suyun, Marketing Director of Shenzhen Gaogong LED Research Center, said, “To put it bluntly, Shenzhen is still in the middle and low-end applications of the industrial chain. Although there are nearly a thousand LED-related enterprises, many of them are just some very small manufacturers, lacking core. Technology and competitiveness."
  In fact, Shenzhen is also actively promoting the development of the LED upstream industry. Chip companies such as Century Jingyuan and Fangda have emerged, but the products at this stage have not been mass-produced or recognized in terms of quality. Peng Xinyu, president of Shenzhen LED lighting manufacturer Zhongyihai Technology, admitted that "most of the chips we use today are imported, although domestically produced is cheap, but the quality is still very different."
The company has no patents, and the industry has no standards.
  From the perspective of the global LED industry, US and Japanese companies have monopoly advantages in technology and equipment, and European companies have outstanding advantages in applied technology.
  Moreover, these foreign companies have mastered a large number of major technology patents in the upstream and downstream. Once they launch a "patent offensive" and build a "patent encirclement", domestic LED companies will face severe challenges.
  Xie Suyun pointed out that "the products of many domestic manufacturers have more or less infringement problems. Although many foreign giants have not yet collected them, as long as the LED market is slowly spread, these problems will be prominent."
  "The pig has to wait for the fat to be slaughtered." He gave an example to illustrate that the foreign LED giants are like Microsoft at the time. When the Windows system was promoted, it was initially encouraged to use it whether it was pirated or genuine. After the dependence was generated, the charges began. "At the end of last year, some enterprises in Shenzhen were prosecuted for infringement, and the amount of the claim was as high as 200 million yuan."
  Peng Xinyu thinks, "The biggest dilemma of the LED industry is that there is no standard and no standard. The standard is the specific technical requirements for various products. Although the government attaches importance to this industry, it has always been no standard, so everyone is viciously competing, resulting in inferiority. The excuses of good coins have a great impact on the healthy development of the industry.†According to industry insiders, more than 2,000 enterprises in the Pearl River Delta can achieve stable products and less than half of the production according to orders.
  Xie Suyun pointed out, "In fact, all national ministries and commissions and local governments are now formulating LED standards. Not only the Ministry of Industry and Information Technology has a set of standards, but even Shanghai, Guangdong, Shaanxi, Shenzhen and other places have their own standards. However, in addition to the Ministry of Industry and Information Technology, local governments The standards are often also likely to be mixed with the interests of local companies, which will lead companies to use the standard monopoly of local markets, but become an obstacle to industrial development."
  In addition, Xie Suyun believes that "current LED technology is still in the growth stage and is constantly developing, but some departments have set standards that are lagging and not suitable for time, while others are too high to be realized. These are not enough for the entire industry. Carry out the specification."
  Short board
When the price is too high, when will LED lighting be popular?
  Although LED lamps have energy-saving advantages, there are only a handful of LED lighting products on the market. According to some industry insiders, LED lighting products are mainly used in automotive lighting, display technology and municipal engineering. The biggest resistance to LED application is undoubtedly the price.
  Xie Suyun pointed out that "LED lights are several times or even dozens of times more expensive than traditional lighting products. Although the cost can be recovered through energy saving, the concept of users has not changed yet."
  However, the manufacturers are optimistic, Peng Xinyu said, "It takes time for any product to enter the market. At present, the market awareness of LED products is much better than that of a few years ago. And some domestic LED lighting products and foreign brands. The energy-saving lamps are almost the same in price, so the competitive advantage is still very large."
  Some research reports predict that with the advancement of technology, mass production of LEDs, and price decline, in 2015, civilian LED lighting products will be fully rolled out, and the market share will reach 20%.
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