Author: Engineering LED Xiesu Yun
China's real estate industry has overdrawn the future development potential. China's LED industry is also overdrafting future capacity and market. Some people began to describe the current Chinese LED industry. Undoubtedly, the development of China's LED industry in 2009 exceeded our expectations, and the scale LED industry project was blooming in the east, west, and north. Governments, venture capital and companies are gambling LEDs. However, many industry experts believe that the LED industry has already seen overheated investment. After the completion of a large number of LED projects, China's LED industry will not be concentrated, overcapacity, market disorder and lack of talent.
The excess capacity worries
In 2009, LED TV became popular, turning the LED chip market with overcapacity before 2008 into a tight production capacity. Based on the optimistic view of the future LED TV and lighting market, the increase in capital and expansion has become the most important thing for the LED business owners in 2009, that is, the prosperity of the large-scale LED industry project that we have seen in the east, west, and north.
However, according to expert analysis, from the current statistics of construction and planned construction projects, LED production capacity has at least overdrafted production capacity and market in the next three to five years. "The large-scale expansion of LED chip packaging companies in 2009-2010 may make the sluggish situation of overcapacity in 2008 possible." Liu Zhen, general manager of Shenzhen Quantum Optoelectronics, was in the "4th LED Industry Theme Summit Forum" in December last year. Remind the industry that the market "chaos" is about to start.
Worry about competitiveness
According to statistics, at present, there are 62 LED epitaxial and chip companies in China, more than 1,000 LED packaging companies, and nearly 2,000 LED application companies. However, China's LED companies generally have problems such as low technological content, low innovation capability and lack of core competitiveness. With the entry of international giants into the Chinese market, many domestic companies with certain core competitiveness will face the risk of being merged, and the uncompetitive enterprises will be directly eliminated. Mei Jian, an investment partner of Dongfang Haifu, once said bluntly: "I have seen many companies in the LED industry. Unfortunately, I have not completed an investment yet. I feel that there are many enterprises in the LED industry in China, but those with long-term development are not. More." Let's take a look at his "suggestions for LED companies", perhaps for our LED startup companies.
Worry about patent disputes
The lack of core technology will be followed by patent disputes. Due to the late development of China's LED industry technology, a large number of core technology patents for LED are in the hands of developed countries such as Europe, America, Japan and Korea. In recent years, in order to prevent patent disputes between them, the giants who master the core patents have even suppressed newcomers and seized the international market. They frequently set up a rigorous patent network in the world through mutual authorization. It is understood that more than half of the core patents currently licensed by the core patents are authorized in China.
With the development of the global LED lighting industry and the intensification of competition, in recent years, China's LED companies have become more and more prominent in the international trade of intellectual property rights. When entering the overseas market, they frequently encounter barriers such as patent licensing and patent infringement litigation. The development has had a serious adverse impact. With the opening of China's LED lighting market, the trend of Nichia and other large companies shifting the focus of patent litigation to domestic enterprises is becoming more and more obvious.
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