Shenzhen waste regulations Dongguan development of 100 billion LED industry is reliable?

On May 27th, the municipal government executive meeting passed the "Dongguan City Promotion of LED Industry Development Implementation Measures", and strive to build LED billion yuan industry. However, not long ago, Shenzhen abolished the implementation of the LED industry plan for four years, and the industry also has the argument that LED touches the ceiling.

One way, one waste rule, two cities, the performance is very different. Shenzhen LED once became synonymous with China's LED, its waste regulations, what signal released to Dongguan's LED market? Dongguan is developing a 100 billion LED industry at this time, is it reliable?

What kind of signal is released by Shenzhen waste regulations?

Background: In mid-March, Shenzhen Municipality abolished the Notice on Printing and Distributing Shenzhen LED Industry Development Plan (2009-2015) in the form of “Government Gazette”. This is the country's first LED industry planning, and many of the relevant plans developed by many cities are based on this.

Zeng Wei: Shenzhen has indeed developed a benchmark in the LED industry. However, in a period of time, Shenzhen has also experienced the collapse of LE D enterprises, but we also have to see that the LED sector of A shares, Shenzhen accounted for half of the country. There are nine companies including Lehman Optoelectronics. In fact, the entire LED market in Shenzhen can now be “self-defeating”, large enterprises are bigger and stronger, and small enterprises are naturally eliminated. This is the normal market track. In turn, we look at government planning, which is a way to support the industry without the market being fully developed. Since the Shenzhen market has matured, this "abolition" is understandable.

Shi Guangdian: Our company was planning last year and moved to Dongguan. At that time, there was already a wind that the LE D industry plan might abolish. What we are concerned about is that the content of industrial planning is to help small and weak, and it is beneficial to our small and medium-sized LED enterprises. But now that the giant LEDs in Shenzhen are up, the government does not need to continue to use resources to support it. Then, those of us who are still growing up will live by the water and go to Dongguan, where we can get more support. .

The person in charge of the Dongguan Semiconductor Lighting Industry Association: The introduction of the Dongguan plan, there are many policies to support enterprises. Our association will do an annual statistic every year. There are 180 LED companies surveyed in Dongguan. There are thousands of LED companies in Shenzhen. The development of the entire market in Dongguan is still not mature enough, so it is necessary to have planning to guide. Now our plan is to achieve 2015, and boldly imagine that if the market in Dongguan can be developed, then the LE D industry planning and implementation measures in Dongguan may also abdicate and give control to the market.

Is there any excess capacity?

Background: LED companies have closed down all over the country. The industry is worried that the entire LED industry has actually experienced overcapacity, lest the LED industry become the second photovoltaic industry.

Shen Haijun: Dongguan is a demonstration city of LED lighting. This year is the last year of the goal of 200,000 baht in the province. There are still 150,000 street lamps to be promoted. From the perspective of government procurement, this market demand is also very large. And this year will also promote indoor lighting, which is another big market. So the absolute excess does not exist. In the past few years, the LED industry has developed rapidly, and there are more downstream enterprises with low-end packaging. However, the entire market is still relatively weak in terms of chips and equipment materials, which has caused a relative surplus.

Lin Jiang: I agree with the idea of ​​relative surplus. LED is an energy-saving product. From the market that replaces traditional lamps, LED production capacity is not excessive. There are so many street lamps in the country, so many household lamps need no absolute surplus. But what is the excess and the excess? Now, in batches, those companies that are downstream are doing low-end packaging. There are spare parts, there are venues, you can put together LED lights. The initial stage may develop very quickly, or even do a lot, but soon the competitiveness of this product will come down. If Dongguan does not plan for the upstream of the LED industry, and continue to follow this low-end road, it will inevitably lead to excess.

Huang Mei: At present, the situation of the entire LED industry is not full-load production. However, at a certain time, the market consumption is limited. At this stage, the market has not been fully liberalized, and the use of LEDs has not been fully promoted. Therefore, there is no excess capacity, but the market has not yet been fully developed.

Head of Dongguan Semiconductor Lighting Industry Association: Now Dongguan LED lighting industry, upstream of the gallium semiconductor, Fudi is doing chips, but the actual work is very good. Downstream, there are a number of packaging enterprises such as Qinshang Optoelectronics, and there are also Delta and other power sources, and the downstream is relatively developed. But to talk about core competitiveness, we still have to go upstream to compete.

What kind of support does the LED need?

Background: Dongguan's support measures cover a number of funding policies including LED major achievements transformation projects, core technology research projects, product promotion and application, product testing and certification, and professional and technical personnel training. For the transformation of major achievements, 70% of the loan interest will be subsidized by interest subsidies; and the new government will be introduced to cultivate innovative enterprises, and the innovative leading enterprises will be awarded up to 1 million yuan.

Lin Jiang: If you look at whether this plan is doing well, it depends on whether it is at the lower end of the low-end, or whether it is determined to support the upstream. Dongguan does not have an absolute advantage in the upstream of the LED industry. Some enterprises have accumulated some capital in the downstream. At this time, they must guide these capitals to feed upstream. From the perspective of this approach in Dongguan, it is a more reliable way to carry out technological innovation and transformation of results in a targeted manner.

Xu Xin: What kind of support do we need as a company? The LED industry is urgently needed to be understood by the public and needs a fair, open and healthy market environment. Because the LED industry is still in its infancy, there are still some irregular behaviors in the industry, and the government is urgently needed to help enterprises improve. The LED industry is still not perfect in terms of technology, effects, and program innovation, and it needs government guidance.

Army: Many LED companies in Dongguan are now doing spare parts or battery industry. Many Shenzhen companies do integration, which is the spare parts purchased in Dongguan. What Dongguan has to do now is to stop at the imitation and packaging level, to be able to make its own brand and have independent intellectual property rights. This ability to withstand shocks will be stronger. The new plan is to make a fuss about this.

Where is the future of the LED industry?

Background: In the first two weeks, Qinshang Optoelectronics signed a contract with Tsinghua University to develop LED optical communication. At the same time, some LED companies' products have more accurate market segmentation, such as lighting to promote plant growth. What implications does this direction have for the industry?

Shi Guangdian: The traditional lighting market, because many companies do not have chip technology, so the competition is too concentrated. Now the company is doing LED lighting solutions, first to do LED special lighting to promote vegetable production, and then to develop lighting that has special effects on animals and homes, and to open up the old battlefield to develop.

Xu Xin: It is also mentioned in the newly introduced plan that the support for the core technology research projects is because there are still many technologies and services that are not fully developed in the LED industry at this stage. This situation leads to a market that is not broad enough. Now the company has grafted LEDs and the Internet of Things to do LED lighting solutions, in order to break away from the traditional lighting competition.

Shen Haijun: First of all, in the upstream of the LED lighting industry, there are still many opportunities for technological innovation. For example, how to make LE D products last longer and cost less. In addition, the new field is a new development space for LED. Recently, the cooperation between Qinshang Optoelectronics and Tsinghua University, as well as the misplaced development of some market segments, is a good direction. It is also supported by our policies.

Lin Jiang: Dongguan develops upstream industries and can also use the introduction method.趁 Some upstream companies are not asking for high prices, and they can introduce their research and development results to Dongguan.

Boldly imagine that by 2015, the Dongguan market will be well developed, and the LED industry planning and implementation measures may also abdicate and give control to the market.

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