One, choose the exhibition : for enterprises, to choose the exhibition is very important, every year around the world, there are held numerous LED exhibition and all are not suitable for every LED lights enterprises, enterprises need according to the exhibition theme, character, regional consumption characteristics and visitor groups to choose the exhibition. For example, LED upstream nature of the show, LED industry downstream enterprises is not suitable for participation; and the type of foreign trade development of China’s domestic market and there is no plan LED enterprises are not suitable for participation in the Mainland Small exhibitions.

Two, select booth: Exhibition Hall location choice for participating enterprises also appears very important. First of all, the entire exhibition person flow is different, enterprise needs to choose a large flow of people; in fact, the quality of the participating enterprises booth around is also very important, if periphery is large LED industry companies, it will be attracted a large number of visitors, and it can drive around person flow, it also can be enhanced to some extent the whole image of enterprise.

Three, exhibition hall design: The design of the pavilion is a negligible factor, because it is the first impression that will attract customers came to visit, but not because the bigger, exhibition hall is,  the better, it will be. Companies need a reasonable choice of the size of the booth according to their actual situation. At the show site, many pavilions shouted in appearance, coming and going, the design of the pavilion can provide as much as possible to see the products and to give guests a comfortable visit just like the urge to go in and have a look, including the appearance of the pavilion is novel, which can provide the design of the environment; the inside design of pavilion can decide the length of time that visitors stay in the exhibition.

Four, Basic information: Exhibitor information need to prepare complete and sufficient, including sales staff business cards, product catalogs, led street light company Profile, bags, gifts and so on. The preparation of these things is not possible, for example, do the high-end market, hungry-issuance of materials is quite reasonable.

The standardization problem has always been the focus of the LED industry. In many complain the LED industry standard, at the time, many regional standard comes on stage in succession, technical specification for continuous releases, so there are so much to know what shall prevail; in many people called for the LED industry should establish national standards at the same time, the establishment of the standard time is really conducive to the rapid development of LED lights industry and the question sound is ceaseless amplification. There is no standard, the LED industry healthy and orderly development is difficult to ensure, with standard, or with restrict the development of LED industry. so about Standard problem, how to solve?

1, lack of standard
LED industry have different standard at present, no matter from central to local. Because of the lack of unified standard, many enterprises do not know the exact standards. Enterprise should take the standard according to the different requirements of the technical for rectification and also satisfy the stability requirement. It’s more difficult for enterprise to do business so it disturb the market . The relevant departments should not only coordinate the standard but also should strengthen standards enforcement.

2, low standard and limitation in representing
At present, either the national standards or local standards, its representation is very limited, and there are many error. As for the formulation of standards , a few enterprises base on their technical status of implementation Therefore enterprises participating in the standard setting process became more representative. In addition, domestic technology is not so good and a limited standard. We should propose foreign firms enter into this standard, and it also can deepen the understanding of foreign technology.

3, the formulation of national standards should not be too fast, which should be simple but not detailed
LED technology level and product performance increases too fast , which cause the standard lag behind the industrial development, thereby constraining the development of the industry. Suggestions for the development of standards should not be detailed, which should be more qualitative description and less quantitative standard. The concerned departments should be standardized and should not just propose these problems directly.

4, construction of public testing or monitoring platform
LED industry lack of market dominant under the governmental dominant period which will have much adverse influence to the development. It is suggested building a public platform for detecting or monitoring, regular domestic LED lighting products such as  streetlights for the authority released. Let people judge this product.

Local industry crisis of the post-crisis period

Industry consolidation, mergers and acquisitions and restructuring are the market behavior. But in the shorter cycle, so intensive penetration of China’s semiconductor LED industry are the first time to appear.

The dense infiltrate behind reflects the plight of the current development of China’s semiconductor industry, and that too much emphasis on the low end of the scale of the development of the situation, and will eventually be replaced by more innovative strength pattern.

Over the years, with the huge market demanded, China will soon become the world’s largest semiconductor market. Local semiconductor LED industry, from the beginning of the last century, has experienced rapid growth of nearly 8 years since 2000 (an average annual growth rate of more than 30%). They have a complete industrial chain in the design, manufacturing, packaging and testing. Moreover, each of the sessions have a large number of enterprise groups.

For example, semiconductor design companies in China had reached a maximum of 500. Manufacturing companies from 2006 to 2007 planning project has reached 20. Relatively strong packaging and testing LED lights industry, there are Changjiang Electronics Technology, through rich micro electric Huatian nearly 10 enterprises.

To Embarrassment, the output value of each link, are not as large-scale overseas with the aspects of an enterprise. For example, 500 design enterprises output value is not as good as had Mediate ranked 10 in the world, all OEM enterprise output value is not as good as TSMC, ASE. All packaging and testing enterprise value is inferior.

The financial crisis tender this situation. Chinese Academy of Engineering, said Xu Juyan, continent of the world’s fastest growing market in 2007, after the onset of the crisis, has become the fastest growing area of the global rate of decline. In 2008, China’s semiconductor LED industry for the first time emerge a the historic negative growth.

“In this way, the integration process is inevitably important scale corporate body is more important.” The Xu Juyan on the “First Financial Daily” said, operators need to enhance physique like SMIC, shifted from the pursuit of scale to the pursuit of profit.

Gu Wenjun said that the current market demand are larger than the production capacity, and that transfer capacity of foreign-funded enterprises in China. It is natural to use the capital, direct acquisition of better factories time.

The disadvantage of the current semiconductor lighting listed as follows:

1, the light efficiency of the high-power LED industry applications is low.
the emitting efficiency for the commercialization of more than 3 watts power light emitting diode light is low, which is lower than the high intensity discharge lamps with the luminous efficiency of more than 100 lumen’s per watt, also lower than the rare earth tricolor fluorescent in more than 60 lumen’s per watt. Semiconductor lighting is energy-saving just setting up within the small power range. When the semiconductor light being the high-power lighting with the current technology does not save much power，but the initial investment cost will be high.

2, The price of high-power LED panel is very high. At present, the market price of the 1watt power white LED is about ten times compared with the price of the traditional light sources.
3, Because the luminous efficiency is low, the input energy shift into heat energy. LED cold light source is just the light itself, but the resistance heat generated by the large current in a semiconductor material will still make the LED to produce a higher temperature. Light emitting diodes produced by the semiconductor materials cannot bear high temperature and overheating will make the life decreases substantially. Using the radiator will  increase the volume of the lamps, so that the semiconductor light source, small size, light weight advantages disappear.
4, Spot, due to the white LED down light manufacturing defects in workmanship and the errors of the reflector or lens, is very likely to cause a yellow circle.

In recent years, the development of LED industry is growing rapidly. But according to the above analysis, we can see that the semiconductor light source in the short term real is not easy to enter the field of general lighting instead of conventional light sources in terms of luminous efficiency and the price level. Solving these problems requires LED luminous efficiency greatly improved and production costs reduced significantly. In short, the deep development of any industry can not do without the power of technology advancement, LED lights technology innovation has become the inevitable development of LED industry.

Analysts said with the core technology breakthrough in the field of light-emitting efficiency, domestic LED scale is rapidly expanding, industry chain is gradually open up. LED is expected to appear larger development in the next two years.

The applications broaden changed the industry structure

“Time is value, the sooner you put into operation, the more favorable it is for the development of the company.” The BDO Randa Deputy General Manager Wang Donging some hurry. December 16, he attended the Ends 30 billion LED projects in Wuhu ground breaking. and 20th, he went to participate in the unveiling of Yangzhou. It only passed two months.

Wang Dongming, introduced the company to enter the LED industry. He took a fancy to the prospects of the industry huge market and higher gross margin. He said that, taking into account the huge market share in applications, LED industry applications into the enterprise is gradually increasing.

Shenyin appliance industry analyst Mao Ping said,  “leading packaging and application of corporate average gross margin of 40% -50%, net profit margin of 20% -30%.”

With the LED luminous efficiency breakthrough product range of applications has also been expanded. “A mobile phone screen is about 10 LED devices, but a 42-inch LCD TV will take 1000 LED Xiangcai Chen Gang LED With its excellent performance, in addition to be applied in the field of lighting, but also continuously improve the penetration rate in the field of TV back-light.

Industrial Securities, said Liu Liang, “2010, global LED backlight expected rapid growth in expected TV demand 30 billion, the demand for laptop 6 million, 7 billion handset demand. “This figure, more than 2008 applications in LCD.

It is to see the industry’s prospects, various funds have flocked to the LED. San-an Optoelectronic has LED upstream core equipment MOCVD from six to ten, and epitaxial wafer production capacity to expand doubled; BDO Runda plans to purchase about 30 sets of MOCVD future.

At present, the domestic LED epitaxy and chip more than 60 enterprises, more than 1000 LED lights packaging companies, nearly 2000 LED industry class enterprise. However, the real achieved downstream companies are rare. In the context of the industry, foreign manufacturers actively layout, the domestic industry is in urgent need of a reshuffle.

LED light industrial has been the focus in people’s life with rapid growth.
In this case, industry consolidation has become one of the hottest topics of the current phase of the LED industry.

Generally speaking, the way of industry consolidation can be roughly divided into vertical integration (mergers and acquisitions, equity participation or policy Union to create vertical industry chain from upstream to downstream) and horizontal integration (ie integration in the enterprise of the industrial chain of the same level) in two ways. At the current stage of development of LED industry, vertical integration seems to be more international. Epistar Corporation (hereinafter referred to as “Epistar) adhere to the level of integration of the main development. We can get a lot of experience. Epistar Chairman had a interview with magazine and Li Bingjie told us that he will explore the integration of art in the LED lights chip industry in the future.

The path of the horizontal integration of OEM

Semiconductor lighting: Recently, Epistar consolidation have sprare no efforts to make great progress in the industry. Jingke have become the important news in the LED industry. The Epistar have made some successful acquisition with M & A cases the element arsenic, Quan, Lian Yong, and a number of epitaxial silicon plant. But this also can be seen a phenomenon, that is, strategy is concentrated in the horizontal level, mergers and acquisitions of enterprises are the main epitaxial silicon plant. Why the Epistar take such an integration strategy?

Li Bingjie: As you said, all these years , the strategy focused largely on the level of integration. M & A is not the direction of vertical integration, although some vertical mergers and acquisitions is a shortcut to the future to enter the manufacturing system. The reason to do it is that it worked closely related to Taiwan’s development environment. Taiwan’s LED industry is rooted in a manufacturing environment of Taiwan’s electronic industry.It is the same as the characteristics of its development and other IT industry in Taiwan, emphasising on how to reduce the costs effectively. The point to reduce the cost for enterprise is to accomplish industrial chain segments.

Semiconductor lighting: industry consolidation is a deep learning, which requires great skills, can you tell us about Epistar successful experience in this area?

Li Bingjie: One of the keys of company consolidation is to make their own corporate culture gradually to be accepted the acquired company. Of course, each cultural integration is not easy mentally, because of the acquiring party barriers, fear of being treated as second-class citizens. The most important of integration is that to be fair and consistent treatment to all employees and to give everyone the same opportunity. So that each employees can feel himself as the one part of this company.

In addition, the integration of technology is also very important for an enterprise, which means that some people should give up everything familiar in the past, to learn and adapt to the new production environment. The Epistar generally took two approaches: First, the integration from new products, old products to maintain the original state. This approach has the advantage of avoiding the difficulty of technology transition during integration, but it takes a long time to complete. LED technology had the rapid changes and development in the past. When technological changes slow down, this integration process will be even longer. Another method is not to integrate, but going into a different market after technical analysis. For example, the Epistar M & Canton Ga, technically on the adoption of this integrated approach. Relatively fast rate of growth of wide gallium epitaxial structure has its advantages in cost. The two technologies take much more time if they want to support each other because of the epitaxial structure, but they may be affected by the original advantages.

The integration strategy of the mainland industry

Semiconductor lighting: more and more stated-owned enterprises are optimistic about the development of LED industry, ready to enter, even to enter the industry. What recommendation do you have for the development of LED industry?

Li Bingjie: 2012 to 2014 is critical time for the future development of LED industry in China. LED lights companies take about 1 to 2-year cycle from the construction of capacity to stabilize out. It is necessary to speed up the pace. We should make earlier decisions no matter to state new policy from the government or, or inputs form enterprises.