The government strongly supports Jiangmen LED industry to double

On July 30th, “Jiangmen City Supporting Strategic Emerging Industries (Green Light Sources) Development Preferential Measures” was reviewed and approved by the Jiangmen Municipal Government's thirteenth executive meeting of the 14th session and officially implemented. Looking forward to the market's recovery, Jiangmen LED enterprises, under the support of the new policy, can it really break out?
The government has vigorously supported the industry to double its growth. Since 2009, Jiangmen has issued a series of policies to subsidize the purchase of MOCVD, a key equipment for LED production, of 8 to 12 million yuan per unit. According to the characteristics of the rapid development of the LED industry and the need to build a full industrial chain, Jiangmen has arranged 150 million yuan of special funds every year for two consecutive years. Such support is very powerful in the province and even the whole country.
Compared with the relevant policies in recent years, the new policy that has just been revised has mainly been revised in six aspects. The new policy support focuses on the transfer of upstream epitaxial chips to downstream packaging applications, and the scope of support is extended to the entire industry chain; important support measures (such as investment equipment subsidies) are carried out in the form of tax rebates; no separate subsidies for MOCVD equipment are established, but they are still Within the scope of subsidies for LED equipment; new preferential policies for attracting major projects; and new funds for self-sustaining of e-commerce, logistics platforms, public technologies, and design platforms.
In 2009, Jiangmen green light source industry has just started to develop, with more than 100 production enterprises with an output value of 9.5 billion yuan. In the past few years, Jiangmen has introduced famous enterprises such as Zhen Mingli, Citizen, Orend, Delixi and Taiwan Yiquan, forming a complete industrial chain of epitaxy-chip-package-application. By 2012, the number of LED manufacturers has increased to more than 300, and the output value has exceeded 19 billion yuan, an increase of more than 100. Since 2013, according to incomplete statistics, there are as many as 1,000 LED-related enterprises in Jiangmen.
The market price has fallen all the way, and the name of the company has been ruined. Since the second half of last year, the market price of LED products has been falling all the time, which has a fatal impact on many companies. The Mingliang Group, the largest LED manufacturer in Jiangmen City, has been losing money in recent years. Fan Bangyang, president of Jiangmen LED Industry Association and chairman of Zhenmingli Group, admitted that the first is because the European and American environment is not good, which leads to the decline of exports. Second, China's lighting technology has not been fully popularized, and the price has not been made transparent. The third is the government. A large number of subsidies and support have led many companies to come in and share a piece of it.
Guangdong Deli Optoelectronics Co., Ltd. also suffered losses. Deli photoelectric engineer Hao said: Three years ago, a chip can be sold for 1,000 yuan, and now only 300-400 yuan. This is a manifestation of overcapacity and a reduction in costs due to higher technology levels and lower material prices.
According to reports, in the first quarter of 2013, the price of LED upstream chips rose, and some of the white light chips rose by 10, attracting epitaxial chip companies to concentrate; while the midstream package factory closed down 20, while most packaging companies turned to lighting devices. Downstream display companies have also closed down and shifted to lighting devices, and even LED lamps are cheaper than traditional energy-saving lamps.
In addition to the fact that in recent years, Jiangmen LED industry has seen a lot of soy sauce companies. According to industry insiders, some investors in other industries have seen the LED industry thriving and want to participate. As a result, LEDs have been made for food, underwear, and building materials. The constant joining of people from all walks of life has enabled the industry to expand rapidly and affect the quality of the industry.
Jane Yucang, general manager of Shenzhen Ruwei Electronics Co., Ltd. admits that if the chaotic development continues, the LED industry may have problems in three to five years. According to reports, there are basically three large blocks of light, light source, power supply and aluminum substrate. The most chaotic is the aluminum substrate. Because it is difficult to keep up with supply chain optimization, it will inevitably lead to regional industry lag or even retrogression.
Wang Junhua, director and deputy general manager of Guangdong Juke Lighting Co., Ltd. pointed out: When we settled in the high-tech zone in 2010, there were less than 10 LED manufacturing companies, and in just a few years, now there are more than 500. He believes that after the first wave of SMEs in recent years, the second wave of competition will be guided by listed companies to integrate the market through the big brand effect.
Industry standards are chaotic and updated. It is reported that the LED industry does not have a clear and specific industry standard. Each manufacturer can only produce according to its own standards. The market is more chaotic and the product quality is uneven. Many LED companies have hit the wall in the European market because of the lack of product quality or related parameters.
In the case of chaotic industrial order, there are not many companies that are not well-balanced and indiscriminate, and the market is disrupted. Last year, Hou Huamin, the general manager of Jiangmen Jiandeng Optoelectronics Technology Co., Ltd., moved the company in Zhongshan to Jiangmen High-tech Zone. However, due to the standard chaos in the industry, the injury was very deep. I strongly urged the LED industry standard to be launched as soon as possible. The launch will accelerate the industry's reshuffle.
The decline in exports, product replacement is too fast, and the things that are made quickly do not adapt to the market. Fan Bangyang said that the company has invested hundreds of millions of dollars in LED production and R&D in recent years. Now it faces problems such as falling orders, overcapacity, aging equipment, etc., and will continue to increase investment. If it is not invested, it will be difficult for products and markets. Mastering, it is difficult to meet the future market.
Mr. Yang, the head of a LED company in Jiangmen High-tech Zone, said that the serious problem in the capital chain is because the investment in this industry is large, and the technology and equipment are updated too fast. However, the sales of the products are not so smooth, and the funds have not returned. It also needs to update the equipment, so it has been losing money.
It is absolutely the sunrise industry is about to enter the outbreak period. Although there are many problems and difficulties, the time can prove everything. Luo Zhida, secretary general of Jiangmen Lighting Industry Association, said with confidence: LED industry is definitely a sunrise industry! Fan Bangyang also said: In the past two years, the LED industry will usher in an outbreak period, and Zhen Mingli is planning to invest in new equipment.
Guo Xiu, general manager of Guangdong Guangbohui Investment Development Co., Ltd. said: With the improvement of LED product technology and the decline of product prices, LED has gradually penetrated into the civilian field from the engineering field, and the spring of LED lighting industry is already in sight. He believes that the second half of this year to the next three years is the outbreak of the LED lighting market.
It is understood that although the number of enterprises is relatively large, at present, Jiangmen is engaged in the research and development of LED upstream chips, only three companies: Zhen Mingli, Deli Optoelectronics, and Orende. As related companies grow up, core technologies will become the decisive factor in the new round of integration in the LED industry.
Zhang Xiaofei, president of the High-tech LED Industry Research Institute, pointed out that the current domestic LED enterprises are generally small and medium-sized enterprises, facing the stifling of domestic and foreign counterparts. If there is no financing means in the capital market, they can only disappear or be marginalized, and listed companies are the most A company that may survive.

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