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.

LED road lighting products should be more intelligent and environmental-friendly

Recently, Zhuhai (Guangdong Province) announced a large energy-saving project: replacing more than 90,000 traditional streetlights with LED road lighting products before the end of 2013.

 

LED road lighting products should be more intelligent and environmental-friendly

 

LED lighting technology has a lot advantages: high technical content, low power consumption, environmental friendly, etc.. The application field has expanded from residential lighting to road lighting. Outsides Zhuhai, many other cities, like Suzhou, Changde, Chongqing announced LED road lighting related projects in the past two years. The huge energy-saving potential became the biggest motivation behind. During the United Nations Conference on Sustainable Development held in this in Rio, the Climate Group released a copy of independent global research report. According to this report, LED road lighting products are estimated to save more than 85% energy. It is also showed that city activities consumed approximately 70% energy in the world, in which 15% from the street lighting area.

 

In addition to their energy-efficient feature, realizing intelligent control will further improve the energy-saving performance of LED road lamps. In this respect, it is Philips that be the pace maker and has already owned many innovative researches and patents. Their Starsense & City Touch light control platform could connect every light source to the central control platform through wireless, and realize intelligent remote control to these lamps. This lighting system can self-adjust each single  LED Panel Light source in accordance with the actual situation: the flow of people/vehicle, the traffic condition and weather. “These intelligent lighting system can help us to detect pedestrians and vehicles on the road. They can automatically be dimmed and turned off if no vehicles or people have been “seen” by sensors. Intelligent designs made the entire LED lighting system more environmental-friendly.” Explained by Dr. He Dana, senior vice president of Philips Group Research Institute, Asia chief technology officer.

 

According to statistics, in 2011, the domestic LED road lighting industry (including LED streetlights and LED tunnel lights) will realize a total output value of 35 billion yuan and total production output of 910,000, 2.9 billion yuan coming from street lighting area (totally 680,000 pieces). It is predicted that by the end of 2012, the production value LED road lighting products will account for 50% of the entire road lighting market. The urbanization will further stimulate the demand for LED street lamps.

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

2009 was destined a China ” LED “, in April, Ministry of national science and Technology launched the ” Ten City ” plan “. In July 24th, the national development and Reform Commission and the United Nations Development Programme ( UNDP ), the global environment facility ( GEF ) cooperation ” Chinese phasing out the incandescent lamp, energy saving lamps promotion ” project signing ceremony was held in Beijing. United Nations Secretary-General Ban Ki-moon, national hair changes appoint vice director Jie Zhenhua, Chinese Ambassador Zhang Yesui, Li Yong of undersecretary of Ministry of finance, the United Nations Development Programme ( UNDP ) chief representative of China Ma Heli attended the signing ceremony. This marks China’s green lighting  usher into a new level to the international cooperation.

the future of investment potential of the led industry

In fact, the State Ministry of Finance in 2008, begin to execute ” the promotion of efficient lighting products financial subsidies to fund management Interim Measures ” have LED semiconductor lighting products included in the scope of subsidies, then the corresponding supporting tax policies have been introduced. This is a industry unprecedented support. By 2008 Beijing Olympic LED application continues to have a fever, and the 2010 World Exposition in Shanghai, Guangzhou Asian Games and the 2011 Shenzhen World University Games coming soon, driven by the large LED billboard, architectural landscape lighting application opportunities, also it was 2009 LED industry focus.

The support of the government, the national energy-saving emission reduction policies led will be the driving force for sustainable development of LED road lighting and led tunnel light market, in addition to international exhibition, event promotion, governments large purchases and LED street demonstration program implementation, and LED street lamp in LED industry where the specification is made in succession, expects 2009 global LED street lamp market penetration will break through 1%, and began to enter rapid growth period.

On how to carry out the “Ten City ” ” LED pilot demonstrative city, Gao Xinsi of Ministry of science and technology to business offices original proposed scheme the initial idea is: through LED in municipal lighting demonstration project as the carrier, to choose 10 city to promote the application of LED lighting (including lamps, tunnel lights, Metro and led tunnel light rail, gas station, underground parking and other functional lighting) 10000 sets or above. According to LED product technical efficiency, energy conservation effect and the economic and social benefits, taken after subsidies, subsidies, but right now it still has not issued a document.

Policy make the environmental lights in enterprise survival and different

In 2009, the promotion activities at present in state financial subsidies for energy-saving lamps are like a raging fire throughout the country. This year the country plans to extend the 120000000 highly efficient environmental lights products, the central finance will be paid 600000000 yuan special funds for subsidies for residents to purchase energy-saving lamps. In addition to the central government funds, local governments also have specialized finance for local area energy saving lamps promotion allowance. In short, this year’s 120000000 highly efficient lighting products, the broad masses of residents spend only half or 1/3 of the price to buy.

environmental lights

Today the state financial subsidies purchase for energy-saving lamp will adopted by bidding to the whole society, through bidding, the last a total of 23 home lighting companies short-listed government financial subsidies list, these enterprises are the lighting industry in China which is relatively well-known brand, whether the enterprise scale and product quality and product R & D, walk in front of the similar enterprises. This includes opple lighting, OSRAM, Zhejiang sunshine, FSL Philips Lighting appliances, domestic well-known lighting brands.

State financial subsidies for energy-saving lamps take tender procurement, the strength of a strong, in the energy-saving lighting products that has great attainments in bidding enterprises is undoubtedly a great advantage. But once the government’s energy saving lamps procurement, these enterprises will gain enormous economic benefits at the same time, the brand will also get a great promotional opportunities. Many lighting enterprises of national subsidies for energy-saving lamps bidding interest also illustrates the potential business opportunities in the inside.

At present, the biggest factor for restricting energy-saving lamp popularization is price. Even though incandescent lamp save more energy, yet the price compared with energy saving lamp and environmental lights, a little more than ten times, for ordinary people, whether to choose cheap one but energy-consuming incandescent lamp, or expensive but energy efficient lighting products, it may also have to consider. This research results, probably is the choice of incandescent lamp, an incandescent led tunnel light in his life took charge of electricity is not better than energy-saving lamp high price.

The country take the way of financial subsidies to promote energy-saving lamps to the general public. To lead people to have very low price to buy high-quality energy-saving lamp, it is important to promote energy-saving emission reduction. But this policy, in addition to, have social sense, for lighting enterprises influence can not be ignored.

Current status and development of lighting industry in China

The advent of lighting products have a long history dating back now, but it is not a long time to develop as an industry. The lighting industry has been in the direction of the scale, brand development. The more well-known brands in the worldwide Philips, Os-ram, GE, Panasonic and others. In recent years, the share of sales of these enterprises accounted for 40-60% of the global lighting market.

Current status and development of lighting industry in China

The lighting scale in China’s lighting industry

The rapid economic development and the formation of the global processing and manufacturing center provide the opportunities in the lighting industry and at the same time, accompanied by increasingly fierce competition. To the end of February 2009, the lighting industry had more than 2963 companies, small businesses accounted for nearly 90% of the proportion, and large enterprises is only 15. Although there are a number of firms, yet a smaller proportion lighting limited to reach large-scale production led tunnel light. So the scale production of lamp enterprise are even more smaller, and unable to generate economies of scale. The lighting industry, large and dispersed, low industrial concentration, the whole industry is not more than 1% of a company’s market share. In lighting technology is highly developed, the format is quite mature in developed countries such as Germany, the United States and Japan, the entire lighting industry after several strong corporate integrated industry, 2 – 3 controls more than 95% of the country’s market share, industry concentration is very high.

Lighting companies in China

Competition in the domestic market are becoming more international, Philips, GE, Os-ram, represented by the internationally renowned brand known for its high-end technology accumulated over the years and the brand advantage, after several years of running, as well as the understanding of the Chinese market, has entered a stable development period, and occupy a great proportion of high-end products in the domestic market. Domestic enterprises with its price and service advantages are mostly positioning in the low-end market. With the lighting industry competition stage of evolution, whether it is to occupy the high-end market–Philips, GE, OSRAM and other international giants, still in the low-end market–FSL, Zhejiang sunshine and other domestic brands, no one can occupy more market share.

The future development of the LED lighting market forecast and analysis

LED lighting, as a new generation of lighting products, has its own strong advantages: energy saving, high brightness, high efficiency, long service life, environmental protection, because the LED lighting with these merits, so it decided that he would revolutionize the lighting market! From quantitative change to qualitative change. If 1 – 2 years after, LED lighting market enter into the family, so the needs will be not million units, but in one billion, 10 billion for the unit, so it is visible that the market has huge potential business opportunities, and rich. Shanghai long core semiconductor, as a domestic enterprise, has its own characteristics in the power management and LED driver contributing to the development of LED lighting!

The future development of the LED lighting market forecast and analysis

If you want to accelerate LED lighting of the family, it is the important factor to restrict the performance and cost. LED lamp itself can be divided into two main parts : one is the LED drivers, two is LED semiconductor itself. So far, I think LED driving part determines the LED lighting performance, only a stable and efficient drive system can reflect all the advantages of LED lighting, if there is no a good drive system, not only a lot of advantages of LED lighting display, but also plays the side-effect. Domestic LED driver design standards, although many companies involved in and made ​​a lot of products, but still in the Warring States Period, there is not a mainstream program, and there is not a company’s products who is the LED lighting market Leader ! Perhaps there was no good LED driver programs in the past. Most of led tunnel light domestic lighting manufacturer have wrong theory, they just do some big projects in order to meet the market, mainly to do some big orders, just do a lot of LED lights projects, and big orders. They just make a little simple process for LED lighting, because they think it is just can be enlightening. Resulting in inefficiency and waste of resources; drive current instability, uninterruptedly power supply, pulse power, greatly shorten life of the LED lights, which can be said that being contrary to the concept and design of LED lights.