Analysis of China's LED Industry Chain Situation

After years of development, China's LED industry chain has gradually improved, companies throughout the LED substrate, LED epitaxy, LED chips, LED packaging and LED applications in various sectors. Looking at the overall industrial chain, due to the relatively high technology and capital requirements of the upstream industry, domestic enterprises rarely get involved, so the industry has the characteristics of small number of companies and small scale.

In contrast, due to the relatively low capital and technical requirements for downstream packaging and applications for enterprises, this is precisely in line with the fact that domestic companies have less funds and weaker technologies. Therefore, there are more domestic companies engaged in these two links. . This uneven distribution of corporate structure led to China's LED industry mostly low-end products, companies face long-term severe price pressures.

With the significant decline in the cost of epitaxial chips upstream of LEDs in the past two years, the upstream epitaxial chips, midstream packaging, and downstream applications have formed a market scale ratio of 1:4:9. From the perspective of the entire upstream investment, the growth rate of the epitaxial wafer investment dropped from 46% in 2011 to 10% in 2012, while the investment growth in downstream applications was 21% in 2011 and 53% in 2012, so LED Industry investment shifts from upstream to downstream.

The upstream links have high technical content, large capital investment, large quality impact, and high profit margins. The LED luminous color and luminous efficiency are related to the production of LED materials and processes, and the upstream accounted for about 70% of the LED manufacturing cost, which is extremely important for the LED industry; It is a technology and capital intensive link. The chip is currently the most intense link in patent competition, with the characteristics of large investment intensity but slow performance; the downstream link includes the development and production applications of LED packaging and lighting, and is the most closely linked with the market, technology With a relatively low content and a low investment threshold, it is the largest and fastest growing field in the LED industry.

In the upstream LED epitaxial wafers, chip production, the United States, Japan, the EU still has great technical advantages, and China's Taiwan region has become an important global LED production base. At present, the world has formed a three-footed industrial structure dominated by the United States, Asia, and Europe. It has taken the lead in Japan, the United States, and Germany as its industry leader. Taiwan and South Korea have followed closely. China, Malaysia, and other countries and regions have actively followed. Into the echelon distribution.

Although there is still a certain gap between China's LED epitaxial wafers and chip production technology from the international advanced level, the huge domestic demand for applications has brought tremendous development opportunities to LED downstream manufacturers. Domestic production such as display screens and landscape lighting fixtures And other LED applications have been exported to the United States, the European Union and other countries and regions.

At present, the main research institutions for domestic epitaxy and chips include Peking University, Tsinghua University, Nanchang University, Institute of Semiconductors, Institute of Physics of China Academy of Science, 13 CLP, South China Normal University, Beijing University of Technology, Shenzhen University, Shandong University, and Nanjing University. GaN epitaxial layers grown on a silicon substrate, GaN-based blue light wavelength drift, increased internal quantum efficiency and light extraction efficiency, improved resistance to light decay, and power chip heat dissipation levels.