Detailed Industry Keywords Refraction Domestic LED industry development context

The LED industry has a certain scale effect and gradually matures. In recent days, the author has teased out the basic thread of domestic LED industry development and summarized several key words.

Key words: Scale At present, China's LED industry has formed a complete industrial chain including epitaxial growth, chip manufacturing, packaging, application, testing, etc. Products are widely used in landscape lighting, backlight sources and general lighting and other fields. As of the end of 2010, China's LED industry has a market size of more than 100 billion yuan. It is estimated that by 2015 China's LED industry will reach 500 billion yuan in market size, and the business opportunities will be huge.

In China, most of the raw materials, manufacturing equipment, and test instruments that currently manufacture LED products have been domesticized, but MOCVD epitaxy equipment, some fully automatic chips, packaging equipment, and some optical inspection instruments also rely on imports. Although some equipment and instruments can be manufactured in China, their performance is still inferior to similar imported equipment imported from abroad.

If the magnifier is focused on the LED industry chain itself, it will be found that the most basic of the entire industry chain is the substrate, epitaxial growth, chip manufacturing, they belong to the upper reaches of the LED industry chain; LED device packaging is in the middle reaches of the industrial chain; LED applications are in Downstream of the industrial chain. At present, most of the LED companies in China are concentrated in the downstream of the industrial chain, that is, the manufacture of LED light source application products, such as Longpool Optoelectronics Co., Ltd., Northern Ruitex Technology Co., Ltd., and China Optoelectronics Co., Ltd., etc. Thankfully, at present, several large and powerful companies in China have extended their reach to the upper and middle reaches of the industrial chain of epitaxial growth, chip manufacturing, and device packaging. China Electronics Technology Group, which participated in the expo, is one of them. one.

China Electronics Technology Group is China's LED industry in the "giant", its business areas from LED chips, epitaxial wafers to the production of LED light source application product development, almost all-inclusive. According to the relevant person in charge of the 13th Institute of the Group responsible for the research and development of LED products, over 10 years, through the introduction of technical teams in Taiwan and the experts and scholars of the Institute, the research and development of LED chips have been underway. The level and quality have reached the domestic first-class level and are favored by Russia and other overseas markets.

It is understood that at present, domestic LED lighting applications are mainly concentrated in traffic lighting (such as street lights, tunnel lights, etc.), landscape lighting (such as park green lights, building exterior wall lighting, etc.), commercial lighting (building halls, etc.), also Without going into the homes of ordinary people, one of the reasons is the high price of the product.

In the entire lighting market, the civilian-class products market is broad, but because LED light bulbs are more than 10 times more expensive than ordinary light bulbs, the high prices make ordinary consumers frightened, so civilian-level LED products are basically flowing to hotels, restaurants, villas, high-end residential Area. Some people may say that an LED light bulb can emit 50,000 hours of continuous light, while the life of ordinary tungsten light bulbs is only 500-1000 hours. It is still LED bulbs to save money, but consumers may ask: Who can guarantee 50 yuan? Can the LED bulb really use 50,000 hours?

In fact, companies are also helpless. At present, the cost of producing an LED bulb is very high, especially the core raw materials such as chips are expensive, and many domestic companies are accustomed to choosing expensive foreign chips, epitaxial wafers, and other materials, which virtually give away a large part of profits. Foreign manufacturers, the main reason for this situation is that the core patent technologies such as chips and epitaxial wafers are in the hands of foreign manufacturers. This is like the CPU chip in the computer field. The intellectual property right has the final price decision power. Domestic LED companies without core technology can only be controlled by people.

High prices virtually limit the output of LED products, which in turn increases the production cost of monomer products, thus creating a vicious circle. Therefore, in order to reduce the cost of LED products, in addition to continuous innovation and increase production, improving the quality of domestic chips, epitaxial wafers is the fundamental solution.

Keyword II: Government Support 2011 is the first year of the “Twelfth Five-Year Plan”. The relevant functional departments of the government have increased efforts to support the LED industry and increase its development goals. It is reported that during the "12th Five-Year Plan" period, China's LED industry's main development goals are to increase the LED chip light-emitting efficiency, strengthen the patented white LED layout and accelerate the development of LED lighting standards.

According to relevant plans, by 2015, the luminous efficiency of China's white LED will reach the international advanced level in the same period, occupying 30% of the general lighting market, replacing 70% of imported bright chips, and realizing the localization of MOCVD core equipment and key supporting materials; around the backlight , automotive lighting and other major strategic products, strengthening technology integration, and achieving large-scale demonstration applications, industrial scale reached 500 billion yuan, 500,000 new jobs; annual electricity saving of 140 billion degrees, annual savings of 49 million tons of standard coal, reduced Carbon dioxide, sulfur dioxide, nitrogen oxides, dust emissions 140 million tons.

When asked about the future development of the LED industry, the heads of exhibitors all expressed their willingness to work hard toward this goal.

However, as there is no uniform LED light industry standard in the country, LED companies basically do their own business in production, and the quality of products varies greatly, leading some companies to doubt the domestic market environment. The most criticized LED product is the problem of the service life of LED lamps. At present, the theoretical service life of LED light source products is more than 50,000 hours, but the actual service life of some products produced by some companies is far below this standard, which casts a shadow on the quality and reputation of LED light source products, and to a certain extent. Constrained the development of the LED industry. The person in charge of the exhibitors expressed that they hope to formulate a unified industry standard as soon as possible.

The establishment of industry standards is the only way for the LED industry, but there are still some difficulties. LED light source products are more special and belong to optoelectronic integration products. The formulation of light parameters is relatively easy, and the development of power standards is complex. This requires the government's large-scale enterprises in the United Nations to lead and guide the formulation of industry standards.

Key words 3: Solar energy Following the nuclear crisis in Fukushima, Japan, the nuclear power that has been favored by people in recent years has been unavoidably fearful. In this context, China decided to adjust and improve the mid- and long-term plans for the development of nuclear power, and to suspend the approval of nuclear power plant projects and projects for carrying out preparatory work. For other clean energy sources such as hydropower, wind power, and photovoltaics, the new development opportunity is impressively present.

In fact, as a representative of renewable energy, solar energy has long been written into textbooks and entered people's lives. The reason why solar energy has drawn attention from all parties long ago is that it is renewable because it is inexhaustible; second, because it is one of green and environmentally friendly energy sources, it is cleaner than wind energy and water energy. . However, as the energy conversion process of solar energy is too cumbersome, the cost is high, the development is slow, and it is gradually overtaken by nuclear power, etc., and it becomes a single lady who is only a single figure. Until the rise of the LED industry, solar energy found a happy "second spring." At the "two sessions" this year, the development and use of solar energy has become a major topic for some deputies and has received extensive attention.

Zhao Baohong, director of Longpo Optoelectronics R&D Center, said: “Solar power generation is basically 12 volts or 24 volts low voltage direct current, which is in line with the low voltage DC power required by LED. It can be said that it is a natural match.”

In addition, the "12th Five-Year Plan for Development of China Household Appliance Industry" suggests that it is necessary to develop and use solar energy products and new energy household appliances to increase the technological level of solar energy utilization and promote the use of solar energy products such as solar water heaters in home life. . The combination of LED and solar energy is a reflection of solar energy applied to traffic and municipal lighting. At present, solar LED street lamps have entered the cities of Beijing, Shenzhen, Dongguan, Baoding, Handan, and other large and medium-sized cities, to contribute to the local municipal lighting.

Take Beijing as an example. In 2004, Beijing started the “Green Lighting Project”. First of all, it was applied in more than 50 government agencies to achieve good results. Subsequently, some hotels, commercial buildings, hospitals, and colleges and universities have also replaced energy-saving lamps, followed by Beijing. The 70 subway stations and 114 kilometers of subways in the city have all achieved "green lighting". After the renovation of 1,263 public toilets in the Second Ring Road, all energy-saving lamps were used. More than 2,000 primary and secondary schools replaced the high-efficiency lighting sources. Get strong support from the government.

Keyword 4: The brand's long-term development depends on the brand, and the brand is built on the people's reputation. In the international community, Panasonic, Volkswagen, Nokia and other companies all rely on word of mouth to build their own brand and win a place in their respective fields. If the company’s product quality is poor and easily damaged, it is inevitable that the company will be eliminated by the market. Because brands and companies suffer losses due to poor quality and reputation, and even affect the entire industry, cases show that brands and companies are interdependent, and those without a brand are companies that have no vitality.

According to incomplete statistics, there are currently hundreds of LED lighting companies in the country, a considerable part of which is small workshop-style enterprises. These small companies use low-cost, difficult-to-guarante chips, heat sinks, and molds to produce LED fixtures. After these fixtures enter the market, they cost less, but their service life is far less than the normal lifespan of LED fixtures, ultimately resulting in the market. An illusion that inexpensive LED lamps are not good enough to bring negative effects to the entire LED industry.

The good news is that the pursuit of brand and word of mouth has become the consensus of the LED companies participating in this Expo. “The quality of products people have the final say, if you often fail, product reputation is where the long-term development of the company must rely on word of mouth.” Zhao Baohong believes that in today's product homogeneity is serious, to win the market must rely on the brand and reputation. If it is a good brand that can be trusted, its products will naturally be welcomed by consumers, and companies will stand out in the fierce market competition. This is also why many large companies have tried every means to reshape their corporate image and restore consumer confidence through product recalls, claims, and apologies.

However, the shaping of the brand cannot be accomplished overnight and it will require years of hard work. “In the traditional lighting market, foreign Panasonic, Philips, and domestic NVC lighting have been created after many years of hard work,” said He Rong, general manager of Northern China.

Looking back at the history of the development of many well-known brands at home and abroad, you will see many similarities: They were born a long time ago, and they all experienced a painful growth period. They all learned to gain reputation by quality in their development. Today, these companies have played a pivotal role in their respective industries through their own efforts and brand building, and have become leaders in the industry.

Key words 5: Innovation In addition to brand building, innovation is another important cornerstone for corporate development. “Innovation is a must, and LED products have gone through several upgrades. Each generation of products has developed a better quality product through constant innovation and constant technological breakthroughs,” said a company official.

According to the exhibitors, they will conduct a lot of research work in the early stages of research and development, forecast market trends and development prospects, and then come up with a number of product design solutions. In the next step, the company's R&D department will work with relevant universities, scientific research institutions or foreign partners to continuously modify the product design through experiments to produce better samples. Then, these samples will go through several performance tests to solve the problems that appear in the tests and eventually bring the qualified products to market. The entire R&D process lasted 3-6 months.

The so-called innovation refers to the activities of human beings to continuously expand the process and results of the cognition and behavior of the objective world and itself in order to meet their own needs, in short, to create new things. Specific to the LED field, innovation mainly refers to technological innovation and functional innovation.

As the core technology of LED lighting products is mainly in the hands of large foreign companies, many LED lighting manufacturers at home and abroad will shift their R&D focus to product function innovation and application innovation. At the expo, a special LED flashlight demonstrated by a company attracted attention. According to the person in charge of the domestic company that represents the product, this flashlight not only has a long lifespan, but also has a hard metal shell that can be used in addition to lighting and self-defense. In fact, this is a very clever design. After all, people in the city rarely experience power outages. Therefore, flashlights may be used in special situations such as outdoor activities. In some special situations, it is inevitable to encounter various crisis situations. A multi-function flashlight that can defend itself, prevent water from being eroded, and issue distress signals at critical moments is definitely a good choice.

Although the energy-saving effect of LED light source products is obvious to all, and the light-emitting performance is close to that of traditional light sources, the LED light source heat-dissipation problem still causes headaches for LED companies. It is understood that most LED companies use high thermal conductivity materials as heat sinks, and product housings are also made of aluminum, so that the heat generated by the light source can be quickly emitted. The Hong Kong Polytechnic University is taking another path. It has not continued to make fuss about heat dissipation, but has tried to reduce the heat generated by the LED itself.

It is understood that the newly developed high-efficiency LED lighting system of the Hong Kong Polytechnic University adopts a new current waveform design, which significantly improves the luminous efficacy of LED products and reduces the heat efficiency of the diode body. Traditional diode drivers use periodic switching technology PWM dimming, although they can achieve the effect of linear light control, but the luminous efficiency will be reduced. The research team at the Hong Kong Polytechnic University found that if the mean current is constant, if the low-level current increases from zero (ie, from zero to Ib) and then generates Bi-Level current, a significant improvement in luminous efficacy is achieved. Since the Bi-Level retains the pulse current waveform of the PWM, the traditional driver's linear light control effect and color stability can still be preserved and fully utilized. Based on this concept, the research team designed and developed a set of driver system for testing purposes. After several tests on different products, the results showed that the products using this technology have significantly improved luminous efficacy.

Although it is too early for most domestic LED companies to break through the blockade of foreign companies in core technology, it does not mean that China's LED industry can only be controlled by people. At present, some domestic LED companies have found a new breakthrough, that is not to do all-round enterprises, but integrate limited resources to specialize in one aspect. For example, in the field of road lighting, it is necessary to apply for a series of patents by improving the performance and technical content of related products, to form its own unique technology that is ahead of other large foreign companies, and to use this as a basis for cross-licensing with foreign companies. , thus gaining a favorable position for enterprises to participate in the international market competition.

“The development of the enterprise relies on innovation. The enterprises in Beijing pay more attention to innovation.” Zhao Baohong said. At present, domestic large-scale LED manufacturing enterprises invariably set up their product R&D departments around Beijing. It is precisely here that they have many strong universities, research institutes and many experienced experts and scholars.

It is understood that almost every major LED company will have one or several strong, renowned Chinese and foreign universities and research institutes such as the Chinese Academy of Sciences and Tsinghua University as partners, and these companies’ R&D teams also have their origins. Dr., Master of the prestigious universities and academic leaders and technical advisors who have fought for many years in the LED industry. In short, relying on top-level colleges and universities and research institutes at home and abroad, the major LED companies that have taken root around Beijing are expected to lead the development and innovation of China's LED industry.

Keyword Six: Development As LED lighting products have obvious advantages in energy saving, China is planning to actively promote LED light source technologies in urban lighting, urban landscape, traffic lighting and residential lighting projects. According to statistics, in 2010 China's LED lighting market output value of more than 150 billion yuan, as expected, the fastest in 2015 LED lighting products in China's lighting market share will reach 20%, industrial scale will reach 500 billion yuan. An LED investment boom is about to start in China. It is understood that in 2010 China's listed companies only on the LED investment plan amounted to more than 30 billion yuan, of which a total investment of 6 billion yuan of LED chip project has settled in Dongguan, Guangdong.

Compared with the booming investment boom, the scope of business for domestic LED companies is much more limited. At present, most of these companies are targeting the large and medium-sized sports venues, road traffic, bridge tunnels, park lawns, office space and other municipal areas, of which street lights and landscape lights are mostly.

The major customer groups in the market for street lamps and landscape lamps are domestic governments at all levels. In recent years, in response to the national energy conservation and environmental protection call, governments at all levels are actively promoting green lighting projects. According to the plan of the Ministry of Science and Technology, this year will expand the original “Ten City Ten Thousand” semiconductor lighting demonstration project to “Five Cities Two Million Units” and proposes to increase the localization rate of LED from 60% to 70%. It can be seen that, although the current LED lighting business scope is limited, the future market prospects are broad.

It is not easy to enter the LED lighting market. As a representative of new light sources, LED lighting products can be applied not only to roads and landscape lighting, but also to TVs, automobiles, indoor lighting and other fields. The application fields are very wide, and their characteristics of low-carbon energy have long been accepted by the public. But for many of the just-started domestic LED companies, all this may just look beautiful. On the one hand, industry standards are still lacking. On the other hand, foreign LED giants have stepped in. It is not easy to obtain a certain market share in the current market environment.

In order to open up the situation, many LED companies are also actively participating in overseas competition while seizing the domestic market. According to a person in charge of an LED company, the company's products have been exported to Europe, America, Southeast Asia and other countries and regions. At the same time, foreign exchange earnings have also established a good image of Chinese LED companies in the international market.

However, the problems exposed in the development of the LED industry cannot be ignored either.

The first is the lack of core technologies. The core technology of LED is mainly the control of epitaxial growth, the structural design of the chip, and the manufacturing process. These core technologies are monopolized by a few large foreign companies and have patent protection, resulting in a very passive development of LED technology in China, and LED products are also in a long-term homogeneity. The level of low-grade, as well as the formation of vicious competition.

Second, LED companies are mixed. At present, there are a large number of LED companies in the country, but the scale of development is uneven. Some small companies have low grades due to lack of R&D strength. They rely on low-price competition and are not good for the development of China's LED industry.

Third, key raw materials and equipment cannot be self-sufficient. At present, China's LED industry chain, the main equipment and instruments (such as MOCVD epitaxy equipment and some fully automated chip manufacturing equipment and packaging equipment), key raw materials, accessories (such as phosphor, sapphire, organic source, arsane, phosphine Etc., etc., high-performance silica gel and epoxy used in packaging are basically imported and the price is high. Over time, it will inevitably lead to high product costs and lack of market competitiveness.

Fourth, the standardization of LED lighting products lags behind and cannot meet the needs of applications and markets. At this stage, the product standards of China's large LED companies are basically based on European and American standards, while some small companies are more confusing. This will result in uneven quality of LED products, which is not conducive to the long-term development of the domestic LED industry.

Keyword VII: Integrity and Integrity The development of individuals, companies, and even the entire industry is crucial. It is imperative to establish and improve a social credit system for a modern market economy. What is good faith? Honesty, that is sincere and honest; letter, that is, keep promises, talk about credit. The basic meaning of honesty is keeping promises, keeping promises, and being honest.

A company with integrity will be firmly remembered by customers and consumers. This kind of integrity will become the most effective source of capital for the company. Recently, China's food industry has frequently erupted into food safety issues, and the image of the entire industry in the eyes of ordinary people has been deteriorating. This is a warning to other industries.

"The long-term development of the company needs to put credibility and quality first. Once there is a problem with integrity, the company can't do it." He Rong said.

Integrity is just like a sea pin for China's just starting LED industry. At present, China's LED industry is like a child in his teens. He is still in a period of growth, and he is easily misguided. At this time, relying on the integrity of the business is equivalent to a primary school student wearing a backstrap correction belt, so that from the outset he can back without a camel, shoulders and shoulders, chest and head, and strode on the road to development. Only in this way, China's LED companies have a bright future.