In order to create an energy-saving and environmentally-friendly future, the Beijing authorities have strongly supported the LED lighting industry. However, under the double impact of falling product prices and oversupply, the industry predicts that one-fifth of China's LED lighting companies will fail in 2013.
There are about 4,000 LED lighting companies in China, which were initially attracted by tax breaks, subsidies and cheap industrial land, and companies have invested in the industry. These companies are now struggling with fierce competition in the industry, and product prices have been swayed over the past three years.
Pan Yirong, director of Shenzhen Zhongming Semiconductor Planning, said in an interview: "Now everyone is doing LED. The industry is very chaotic." He also pointed out that "once a new industry emerges, everyone is rushing into the industry and will immediately do this industry. Rotten."
The goal set by the Chinese government is that LEDs will account for 30% of the domestic lighting market by 2015, more than three times the current level. Official estimates that this will save 35 million tons of coal per year.
If half of China's lighting uses LED lights, the annual savings will be equivalent to 2.5 times the annual power generation of the world's largest hydropower station, the Three Gorges Dam.
However, the demand in the domestic market is sluggish. Despite the subsidies, and the electricity bill will be reduced after use, the process of replacing LED lights in Chinese households has been slow, because the price of LED lights is much more expensive than traditional lighting. In addition, quality issues have also affected consumer confidence in it.
Turn off the lights
Industry experts and even senior executives of some LED companies believe that at least 20% of LED lighting companies in China are either eliminated.
"Many small LED lighting companies are facing difficulties, and may not be able to reach the end," said Wei Li, the director of the company. Qinshang Optoelectronics is a major LED Street Light manufacturer in China.
“After five to ten years, the industry will not have so many companies,†she said in an interview at the company’s headquarters in Dongguan.
Given that 60-70% of China's LED capacity is used for export, industry consolidation may temporarily disrupt the global LED supply chain. However, in the long run, the restructuring of the industry pattern should make China's LED industry healthier and thus help to improve product quality.
At present, there are more than 20 Chinese LED companies listed in Hong Kong and the Mainland, and some of them have attracted private investment before listing. As these companies fell in profit, their share prices also fell sharply. Lehman Opto's share price has fallen 48% from its peak in March, while Chau Ming Technology's share price has fallen 37%.
Industry experts believe that foreign lighting giants including Philips PHG, Osram Osram and GE GE should be able to stand out with strong financial power and advanced technology. German industrial giant Siemens SIEGn holds a partial stake in Osram.
Support Policies
Although the industry is expected to usher in integration, the Chinese government is still committed to supporting the industry. The Ministry of Science and Technology of China said last summer that it plans to increase the scale of the LED lighting industry to 500 billion yuan by 2015.
The Ministry of Science and Technology also plans to cultivate 20-30 leading companies with technological competitiveness in the LED chip-related industries, and include the industry in the industry catalogue further supported by the government. At present, the annual output value of this part of the industry is 200 billion yuan.
China's LED manufacturers are currently heavily dependent on foreign chips, and chip costs have accounted for half of the cost of the product. Introducing chip technology to the domestic market will help reduce costs. For China to achieve its own LED-related goals, reducing costs and improving technology are key.
According to the GLII research report, the annual compound growth rate of China's LED lighting market may exceed 40% by 2016, and its share of the domestic overall lighting market will reach 46%. This is also a global trend.
There are about 4,000 LED lighting companies in China, which were initially attracted by tax breaks, subsidies and cheap industrial land, and companies have invested in the industry. These companies are now struggling with fierce competition in the industry, and product prices have been swayed over the past three years.
Pan Yirong, director of Shenzhen Zhongming Semiconductor Planning, said in an interview: "Now everyone is doing LED. The industry is very chaotic." He also pointed out that "once a new industry emerges, everyone is rushing into the industry and will immediately do this industry. Rotten."
The goal set by the Chinese government is that LEDs will account for 30% of the domestic lighting market by 2015, more than three times the current level. Official estimates that this will save 35 million tons of coal per year.
If half of China's lighting uses LED lights, the annual savings will be equivalent to 2.5 times the annual power generation of the world's largest hydropower station, the Three Gorges Dam.
However, the demand in the domestic market is sluggish. Despite the subsidies, and the electricity bill will be reduced after use, the process of replacing LED lights in Chinese households has been slow, because the price of LED lights is much more expensive than traditional lighting. In addition, quality issues have also affected consumer confidence in it.
Turn off the lights
Industry experts and even senior executives of some LED companies believe that at least 20% of LED lighting companies in China are either eliminated.
"Many small LED lighting companies are facing difficulties, and may not be able to reach the end," said Wei Li, the director of the company. Qinshang Optoelectronics is a major LED Street Light manufacturer in China.
“After five to ten years, the industry will not have so many companies,†she said in an interview at the company’s headquarters in Dongguan.
Given that 60-70% of China's LED capacity is used for export, industry consolidation may temporarily disrupt the global LED supply chain. However, in the long run, the restructuring of the industry pattern should make China's LED industry healthier and thus help to improve product quality.
At present, there are more than 20 Chinese LED companies listed in Hong Kong and the Mainland, and some of them have attracted private investment before listing. As these companies fell in profit, their share prices also fell sharply. Lehman Opto's share price has fallen 48% from its peak in March, while Chau Ming Technology's share price has fallen 37%.
Industry experts believe that foreign lighting giants including Philips PHG, Osram Osram and GE GE should be able to stand out with strong financial power and advanced technology. German industrial giant Siemens SIEGn holds a partial stake in Osram.
Support Policies
Although the industry is expected to usher in integration, the Chinese government is still committed to supporting the industry. The Ministry of Science and Technology of China said last summer that it plans to increase the scale of the LED lighting industry to 500 billion yuan by 2015.
The Ministry of Science and Technology also plans to cultivate 20-30 leading companies with technological competitiveness in the LED chip-related industries, and include the industry in the industry catalogue further supported by the government. At present, the annual output value of this part of the industry is 200 billion yuan.
China's LED manufacturers are currently heavily dependent on foreign chips, and chip costs have accounted for half of the cost of the product. Introducing chip technology to the domestic market will help reduce costs. For China to achieve its own LED-related goals, reducing costs and improving technology are key.
According to the GLII research report, the annual compound growth rate of China's LED lighting market may exceed 40% by 2016, and its share of the domestic overall lighting market will reach 46%. This is also a global trend.
48V Ebike Battery,48V Ebike Battery Series,48V Rechargeable Battery,Ebike Litthium Battery
ZHEJIANG TIANHONG LITHIUM-ION BATTERY CO.,LTD , https://www.tflbattery.com