Zigzag road of domestic LED industry

Domestic LED industry started in the 1970s. After nearly 40 years of development, it has been the formation of the national semiconductor lighting industrial bases in Shanghai, Dalian, Nanchang, Xiamen, Shenzhen, Yangzhou and Shijiazhuang. The products are widely used in landscape lighting and general lighting. At present, China has become the world’s largest lighting appliances producer and second largest exporter of lighting appliances. As of the end of 2011, China had more than 3,000 LED enterprises, of which only 140 billion in annual output value. However, in these 140 companies, no one business annual sales have exceed 1 billion yuan, there are only few only a handful of the who exceed more than 500 million yuan.

Zigzag road of domestic LED industry

What makes the Chinese LED industry difficult to forward? The reason, one the industry is the lack of authoritative industry technology, second, corporate R & D is mainly concentrated in the downstream areas of application, in the upper and middle reaches of the R & D investment is relatively small. Large foreign companies and China’s Taiwan region in some companies have monopolized most of the LED core technology, so mainland enterprises can only be turned to look at low-tech downstream applications market.

China’s LED industry, except the core technology is less competitive, Combination loose is also a major factor restricting its development. The top three who own patent are focused on research institutes, Chinese Academy of Sciences, the Institute of Physics and Beijing University of Technology; In the areas of the chip, the top three are the Chinese Academy of Sciences Semiconductors, Beijing University and Peking University. Compared with research institutions, more domestic enterprises apply for utility model patents.

Facing the competitors “Eyeing”, domestic enterprises should be hard to practice “internal strength”. Primarily,  increase innovation, focusing on research and development one that can be widely accepted by the market and recognized the new technology; followed by, cooperate with foreign companies. it should be based on the digestion and absorption of foreign advanced technology, strengthen the imitative innovation to improve core patents to competitors, to improve its technical effect;

In short, China’s LED industry business must attach importance to the early accumulation of intellectual property, and to learn to use science and technology to arm themselves, and use of the patent to explore the domestic and international markets, and turned the “trap” into a good led tunnel light  market prospects, in order to fly higher-and farther.

LED industry: adhere to the scientific development of walking the road of integration and innovation

Integrity – the vitality of enterprises

Credibility is an important guarantee for enterprises to maximize the benefits, and also the vitality of enterprises. The integrity and performance of the enterprise is to determine the strategic positioning for an enterprise, and perseverance to stick, so that customers feel our sincerity to enjoy our service. The Guosheng, Guangdong Investment Limited strategic positioning is: as the scientific and technological innovation a driving force, and as the market demand for force, and as energy management contract the main business modes, and focused on creating the leading enterprises of the domestic contract energy management business.

LED industry: adhere to the scientific development of walking the road of integration and innovation

Innovation – the soul of business development and power

Innovation is the soul and power. Only persist in innovation, it can maintain vitality in the increasingly fierce market competition. Our approach is: First, as energy-saving industry-led the leading, relying on the state-of-the-art technology of the Chinese Academy of Sciences, based on the sales of domestic LED industry equipment, and promote contract energy management, and actively explore overseas markets, create “Rising lighting” as the most creativity and influence national brand at home and abroad. Second, we enhance personnel, development of human resources. Technical Director Dr. Zhong Qun, chief technical adviser, Professor Jin Peng regard as the members for component LED industry. Third, we joint Tsinghua University, Peking University, South China University of Technology, Jinan University, and other relevant institutions, to carry out the LED lighting precise cast light and remote phosphor technology, the phosphor powder characteristics of the quantum properties of LED industry effects evaluation system comprehensive energy-saving project evaluation system; actively participate in the construction of the joint innovation Center of Guangdong Province, semiconductor led tunnel light industry, and become one of the initiators of joint innovation center. Fourth, we have implemented a strategy of “doing” hand and technology with one hand and the market in full swing, at the same time focus on promoting technology research and development, marketing layout. We set up a marketing team of three independent accounting assessment of the outdoor lighting division, indoor illumination Division, International Business Department, and established a professional marketing team, according to the market opportunity to layout marketing quickly, and achieved good sales results.

LED lighting industry in Dongguan will publish a new policy

In November 14th, Dongguan city was held ” Guangdong independent innovation plan ” (hereinafter referred to as the outline) implementation of site acceptance and LED to promote the application of annual assessment report to Guangdong.

” Fully mobilize market oriented innovation ”

On the meeting, vice mayor Zhang Ke implement the “outline” to the provincial inspection group on the city.

Zhang Ke said, Dongguan City, deeply implement the ” Outline “, greatly enhance the capability of independent innovation, the innovation of science and technology is a good development trend for lighting industry. According to statistics, this year 1~9 month, the city’s increasing value for high-tech industry to occupy above-scale industrial added value is about 32.2%, compared to the same rising period of 2.8%; new cognizance of 55 high-tech enterprises, a total of 458 home; the patent applicaitons reach 21104, and the patent authority reach 15135, ranked the second and third;

Zhang Ke said, the main body of the amount of patent applications and authorization amount is enterprise. The improving for both amount proved that enterprise is seriously paying attention to independence, and also shows that the Dongguan science and technology innovation obtain substantial results. Independent innovation greatly need the market this ” invisible hand ” to promote.

The preparing LED lighting industry development policy

Dongguan Municipal Science and Technology Bureau Director He Yuepei report LED lighting products in the promotion application, the city has a total of 43000 LED street lamp installation and transformation of light and 112000 light LED interior lighting, and 17000 street lamp and 20000 lamps indoor led tunnel light renovation program has been submitted to city hall, the near future will be implement.

According to the provincial government and the city of Dongguan LED promotion schedule, the city will further intensify efforts to accelerate, launch a number of projects, plan to launch a number of projects bidding at the end of Dec in municipal engineering and part of town street, park; strengthen the LED Application Center building, the establishment of expert advisory team, town Street and departments to provide scientific and rational, practical application solutions, study and put forward the feasible waste lamps recycling solutions.

LED lighting industry in Dongguan will publish a new policy

” The pressure for Dongguan independent innovation is not small ”

Zhang Ke expresses, assessment group recommends to hold bibcock innovation, which is very conducive to further promoting independent innovation. The next step is to strengthen the supervision for publicity.

Interpretation of two big lighting led industrial clusters regional advantages

Chinese LED industry has formed a basic complete industrial chain, and initially formed a Pearl River Delta, Yangtze River Delta, northern region, Jiangxi and Fujian the four regions, each region will initially formed a relatively complete industrial chain, more than 85% of the LED enterprise distribution in these areas. National semiconductor lighting project approved the first batch of semiconductor lighting industrial bases of Shanghai, Xiamen, Dalian and Nanchang, basically reflects the industrial pattern.

Interpretation of two big lighting led industrial clusters regional advantages

The Pearl River Delta region

The centered City: Shenzhen, Guangzhou central, Dongguan, Foshan

On behalf of the enterprise : the large group, FSL, Hongli photoelectric, ground the photoelectric

Advantage: application market is larger and the downstream enterprises cluster, it is the largest domestic package, investment is the most concentrated area.

Guangdong region of LED industrial chain supporting are relatively perfect, the related materials, parts, equipment supporting enterprise is numerous, and LED packaging enterprise quantity also occupies the 2/3 above of the whole nation, the deadline to June 30, 2011, China’s LED enterprises are more than 5000, of which 66.4% is distributed in Guangdong Pearl River Delta area.  Guangzhou has concentrated on dozens of downstream packaging enterprises, in the package and LED application advantage; Shenzhen formed ” Sapphire epitaxial chip package – – – – Application of ” a complete industrial chain. In the next few years, the industrial chain advantage still exists, and in the LED industry, it will be a long-term occupation of big boss position.

The Yangtze River Delta region

City: Shanghai, Jiangsu, central Zhejiang

Advantage: the Yangtze River Delta is the circle for China’s LED chip companies. The Yangtze River Delta the semiconductor lighting industry has the advantage of a large number of technical and commercial personnel, industrialization has rich experience, strong capita.

The larger Zhejiang LED application enterprise including: the Zhejiang sun, Hangzhou Hongyan, Ningbo prairie, Zhejiang, Zhejiang, Zhejiang core day Shenghui. Zhejiang is one of the China’s most important traditional lamps among three manufacturing. the traditional led high bay enterprises have already started to LED industrial, future development  potential is very great. Followed by the Jiangsu Province, occupy total 5.3% of countrywide LED application amount, accounting for 30.6% of the total enterprises in Yangtze River Delta LED application, the larger LED application enterprises in Jiangsu history, such as Ford, Nanjing luopu.

LED energy saving lamp – the future of investment potential of the led industry(2)

The actual demand is much more than this figure, “mainland China in 2009 will require 1.4 million and 2.4 million global demand, the next large market potential is evident. Some even boldly predicted; since 2013, China’s LED production value will reach more than $ 100 billion, let aside the amount of numbers, but this industry, as long as it is able to break through the “high-end chip R & D of core technology bottleneck, our energy saving and the goal of building a green city is able to achieve.

LED energy saving lamp - the future of investment potential of the led industry(2)

LED is short for semiconductor lighting. It is based on a solid state light source of the semiconductor chip for the material, relying on the electron-hole recombination, and convert electrical energy into light energy efficiency is as high as 80% or more. Olympic venues under construction LED technology has been widely used as representatives of independent innovation.

It is understood that the LED’s energy consumption is only 10% of incandescent and fluorescent lamps is 30%; it uses solid package, the service life is up to 50,000 hours, 10 times is the incandescent 100 times fluorescent in led industry, it does not require the use of glass vacuum packaging and does not produce toxic side effects and mercury pollution.

China is the world’s second-largest power country. The total power generation in 2007 was 3.2559 trillion kwh, the lighting electricity up to 390 billion kwh, equivalent to the total electricity consumption in the United Kingdom for one year.

Since the 1990s, the main producing countries of the energy-saving lamps in the country vigorously popularize to use in China,while energy-saving lamps that China made are mainly for export, the domestic penetration is not high. The data show that the production of energy-saving lamps in China in 2003 to 1 billion, accounting for 70% of the market share of world sales, domestic sales of only 350 million.

According to experts, since 2007, in North America, Australia, legislation to ban the use of incandescent lamps. EU Summit to reach an agreement in the spring of 2007, which requires EU countries to phase out incandescent in led industry.

With the strong support and promote the application of LED introduction of national standards and national farewell Edison era is just around the corner, then people will spend a clean and green, led high bay light pollution, no radiation and toxic side effects of new high-quality light source.

China’s semiconductor lighting industry is hijacked

Since the ” national semiconductor lighting project coordination leading group ” was established, it passed 6 years ago. The so-called ” semiconductor lighting industry to do be in full swing “, since the central ministries and local governments are cheated, confused and disoriented. Because they are all eager to semiconductor lighting in energy saving and emission reduction work achievement. Having seen national upcoming “ten city lights ” semiconductor lighting project will be started, my feeling is that China ‘s semiconductor lighting industry run into a semiconductor lighting “communistic society  by the so-called ” world class”.

China's semiconductor lighting industry is hijacked

 

When we take a look at the domestic semiconductor lighting enterprise technology status as a veteran in the LED industry for more than 10 years, it is that some could not sleep.

LED industry chain from top to bottom, including some major aspects of the epitaxial material preparation, die preparation device package, and application products manufacturing. Preparation aspects of the epitaxial material and die is a core part of the industry chain, with the highest technical content, funding. Without independent intellectual property rights of the epitaxy and die manufacturing, it would not mastered the core technology of the semiconductor lighting, and Such technical, if without many years of accumulated technology or substantial technology introduction, the domestic enterprises is very difficult to compete in a short period of time with the international advanced level.

Now, at every turn, there is a new company or a new technical team parachuted into the Chinese mainland, they said how high technical level for their products , with independent intellectual property rights, and vowed to take samples to show us. But they do not carry with the core technology to have the guidance of experts, many of these take a direct foreign imported components assembled, or it is imported chip package, most bit technology take imports epitaxial wafers  to do.

LED display system including the Beijing Olympics, how many chips are domestic enterprises produced? (Note: the chip, not the device, rather than display)

Let China’s semiconductor lighting industry take the more robust of it!

China’s semiconductor lighting industry peers determined to do a good job to support my post. Let us work together to put our industry well.

LED lighting industry has experienced a decade of hard struggle

The total output of LED products in 2003 is about 20 billion. After ten years development, there are nearly 100 manufacturers for LED epitaxial technologies and LED chip technologies in China. The annual production output of LED products in 2011 is around 156 billion yuan, 6.5 billion yuan is from LED epitaxial industry and LED chip industry.

 

10 years ago, LED lighting industry narrowly avoided the tragedy of marginalization.

 

10 years ago, LED lighting industry narrowly avoided the tragedy of marginalization. Replying on the emergence of Blue-ray, breakthroughs of high-powered technologies and great supports from the government, LED industry ushered in the spring. Currently, LED-related business has become of the most promising industries in China, an important part of information technology and energy-saving strategy. After 10 years of development, China’s LED lighting industry rapidly grew. Technological innovation capabilities continued to improve. The field of application gradually expanded. The entire industry chain has begun to take shape and still running forward at an amazing speed.

 

Domestic LED industry started in the 1970s, but the real development happened in the past 10 years. In 2003, the Ministry of Science and Technology, the Ministry of Information Industry, the Ministry of Education, the Ministry of Construction jointly organized the implementation of the National Semiconductor Lighting Project. Followed by the National Development and Reform Commission and the Ministry of Finance, who increased the investment in LED industry and application. With great supports of the government, the LED industry in China has made rapid progress, the scale of which has maintained a growth rate of about 30%. In 2011, the annual output value of LED products was 150 billion yuan.

 

The technical level also significantly improved with the rapid growth in the industrial scale. The luminous efficiency has been improved from 85lm/W in 2003 to current 110-140lm/W. The gap with the international technical level is narrowing. The packaging technology is heading to flip / integrated direction, much close to the international advanced level. A number of large LED enterprises successfully developed organic  LED Panel Light sources, sapphire substrates and MOCVD models. Our silicon (silicon substrate) LED technology and industry has achieved a breakthrough. Nanchang University National LED Engineering Technology Research Center has successfully produce silicon substrates Blue-ray LED devices which could realize an electro-optic conversion of 50%-55%.

Difficulties of LED layout channels

Like volcanic eruptions, competitions in LED layout channels brought pressure and fear with makers and suppliers. With the further penetration of semiconductor lighting products to various market segments, channels undoubtedly became the battleground of manufacturers. Beyond all doubt, LED lighting technologies have become the mainstream in commercial lighting area, office lighting area and industrial lighting area. And residential lighting area has finished the conversion from LED lighting concept to LED lighting applications. Under such circumstances, LED layout channels still faced up various difficulties.

 

Like volcanic eruptions, competitions in LED layout channels brought pressure and fear with makers and suppliers.

 

What are the major difficulties for LED layout channels?

  1. Difficult channel construction caused by the insufficient in LED industry: the product chain is not long enough to support stores and shops; relative high selling price and low market penetration; products with different quality, both distributors and users need time to indentify.
  2. Increasingly intense competition in channels leading to competitions for resources. The current situation is that dealers selected manufacturers, rather than manufacturers selected dealers; distributors are numbed to conventional marketing tools, lacking of innovative ideas.
  3. In fact, the construction of channels takes time. First step: the establishment of user cognition. Confidence always set up after user experience, like Apple. But quality problems extended this period. Since lacking of experiences, most of domestic LED companies still had no complete service systems. The accomplishment of channels means all links must be smoothly operated, from production to sales. But LED industry lacks of highly qualified professionals, both in research / development part and marketing part. LED industry has a lot of professional knowledge on the entire chain. In addition, the establishment of hidden channels is even slower. Compared with traditional channels, resources for hidden channels is relatively dispersive. The cognition to LED technologies and related knowledge in key aspects (the design aspect, the construction aspect, the distribution aspect, the purchasing aspect) is still in the immature stage.

 

The construction of channels is an issue not only for which channel to choose, but also for which model operation model to use. There are several main channels in the LED Panel Light market: channel direct; small regional agencies; province agent systems; hidden channel agent systems; project direct; These methods have both advantages and disadvantages. And enterprise using these operating models is searching for principle mode of refinement.

The added value for LED lighting products: intelligent control

LED lighting market is relatively fragmented, since in different fields LED has different lighting applications and different requirements and demand. Commercial lighting and industrial lighting will concern more about production cost and appearance, while residential lighting would like to take product quality and lighting effect into account.

 

LED lighting market is relatively fragmented, since in different fields LED has different lighting applications and different requirements and demand.

 

When it comes to market penetration, currently, the penetration of vehicle LED lighting products is still maintain a low state. Similar conditions also existed in other LED lighting area, like commercial lighting, industrial lighting and residential lighting. The only one with high LED penetration is display industry. However, it is estimated that from 2012 to 2020, the market penetration of LED lighting products within these industries will have a “green” growing.

 

Usually, buyers have less knowledge on product quality and standards for LED products. They would like to choose cheap LED lamps for trial and end up with a “broke lamp and broke heart” condition. They lose confidence for some cheap but low-quality LED lighting products, which exerted bad influence on both LED technologies and market. This is not to say that all products should be on the same quality level. But consumers need to understand what they are going to buy? What’s the expectation they should have? A unified standard would helpful in figuring out such issue.

 

So far, LED has developed for nearly 30 years. It is actually very hard to have breakthrough on core technologies. However, intelligent control system can give more additional value to LED lighting applications. Take mobile phone for example, undoubtedly, this is the most frequently replaced electronic products in the world. Please do not doubt their duration. Their life could be longer than most of electronic products in our house. People continue to buy new cell phones because: a. the amazing developing path of this industry; b. new models usually have much more advanced functions than old ones. Same reason could be used in LED industry, in order to sized the market, makers need to continuously provide new models with more value-added advanced functions and features.

 

About the future development of global  LED Panel Light industry, Carlos LEE indicated that “How to connect current technology developing state with future potentials, this cannot be solved independently by a company or a country. This is a big issue requires global collaboration.”

Suggestions for solving glare problems of LED road lighting applications

Despite that the energy-saving effect of LED road lighting applications has been recognized and accepted by the market, there are also some criticism and bad comments, including over-bright light sources, serious glare, low product quality, etc.. The State General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) has recent released a related research report: the quality pass rate of existing road lights in our country is only 58.3%, even lower for LED road lighting applications.

 

Suggestions for solving glare problems of LED road lighting applications

 

Take glare for instance, it will cause eye fatigue and discomfort. Long-term exposed to intense glare even cause damages to our brain. According to the researchers of Philips, glare is the hostile part of the brightness distribution on our visual field, or extreme brightness contrast in space, which causes visual discomfort and reduces the visibility. Imaging a bright spot in the dark field, which makes our eyes difficult to adapt and focus and cause glare, eye fatigue and discomfort.

 

With the development of LED street lighting industry, more and more manufacturers for LED road lighting applications started to realize the importance of standards, reasonable lighting distribution, visual comfort and user experience. How to overcome these shortcomings became a particularly urgent issue.

 

Philips carried out a series of studies and researches about glare problems among high-powered LED lighting products, trying to find out reasonable solutions to solve this problem. Color temperature significantly impacts the people’s perception on the glare. Two beams of light with the same output luminous flux, the light with lower color temperature (warm white) will cause less discomfort to our eyes compared with the light with higher color temperature (cool white). One possible reason is that people have preferences on color temperature and brightness. In dim conditions, people prefer warm white color (like dawn, right and dusk), while in bight conditions, people prefer cool white (like daytime).

 

Researchers from Philips also discovered that the light intensity of light that captured by eyeballs is another important factor leading to glare. For most LED road lighting applications, 80%-90% light could be evenly distributed on the road. But there are still 10%-20% light inevitably dispersed on the edge of the road. A seemingly reasonable approach is to limit the beam on the road, which is also believed as an effective method to reduce glare. However, this edge light is far more useful than it seems like. This part of LED Panel Light could improve the comfort of drivers’ eyes, enabling them to rapid response.