Cold thinking in the hot investment of LED industry

Lighting (LED) is recognized as one of the most promising high-tech areas of the 21st century. While it is causing the lighting revolution, it will also make a major contribution to promoting energy conservation, environmental protection, and building a conservation-oriented society. With the rise of global economic integration, the LED industry is shifting its industrial ladder to China, which makes China's LED industry possible to achieve leapfrog development. At present, China's lighting industry currently has a production value of over 160 billion, growing at an annual rate of about 20%, and has a lot of room for development. The industry believes that white LED will gradually enter the field of general lighting in 3 to 4 years, and the development prospects are considerable.
The huge prospects of semiconductor lighting have already triggered a boom in domestic LED investment, and many regional companies have launched LED production lines. However, it should be noted that enterprises and investors should calmly think about the development direction of the LED industry, the direction of investment and how to achieve patent breakthroughs, so as to correctly grasp the direction of development.
Here are a few things that companies and investors need to consider carefully:
1. China's LED industry is still in its infancy. Compared with Japan, the United States, Germany and other countries, the LED industry is a capital-intensive and labor-intensive high-tech industry with high investment intensity and high technical difficulty. Some other industry funds have entered the LED industry one after another, which will help the industry to form scale, but it is difficult to see market benefits soon. It takes a certain amount of time to form mature production technologies and products and be accepted by the market. Therefore, it is not as long as the funds are invested to see the market benefits immediately. Investors entering the LED industry must have a full understanding of this.
2. The competition in the domestic LED industry has been very fierce, mainly because the investment in the upstream industry is slightly insufficient, and the downstream industries are rushing in, which may inevitably lead to repeated investment, blind investment or vicious competition. In the selection of entry points, we should appropriately select industrial fields with relatively high thresholds and less competition, avoiding price wars at the beginning, and should choose automated production lines for investment, and form scale as soon as possible. Only when scale is formed can we produce stable and long-term And significant benefits.
3. The LED industry has not yet formed a large scale and market benefits. After three to four years of development, LEDs can gradually enter the field of general lighting, in order to have considerable scale of development and market benefits. The development potential of LED is huge, but under the current technical level, the cost cannot be significantly reduced. Investors should choose the timing and input method.
4. The competition in high-tech industries is largely the competition of intellectual property rights. There are many patents related to LEDs, and it is easy for a manufacturer with a core patent to create a monopoly in the market. And other manufacturers must avoid the key technologies related to them, thus losing market opportunities, so it will be difficult for manufacturers with insufficient R&D capabilities to survive in the industry.
5. In terms of selecting the entry area, investors should fully consider the industrial technology capability and experience and talent reserve of the enterprise. It must have mature industrialization technology and a team that integrates R&D, production management and marketing. . Engaging in academic research, scientific research, and engaging in industry are two different things, otherwise it will easily lead to a situation in which investment is difficult to recover as planned.

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