LED development prospects

       The huge LED market is destined to develop into a huge industry. Generally speaking, the development of large-scale industries in China has been unsatisfactory. Typical cases are the integrated circuit industry and the liquid crystal panel industry. The domestic integrated circuit industry still has a tail between the tails. The liquid crystal panel industry is also plagued by diseases and complex technologies. Large investment and weak foundation are the main reasons, and the LED industry will break this curse and promote the improvement of related industries. For example, the domestic driver chip industry cannot do well in LCD driving because the LCD panel industry is not in the country. Supported by the market, LED driver chips are expected to develop vigorously in China, which will promote domestic related companies to become bigger and stronger, which in turn will promote the development of domestic LCD driver chips or other driver chips.

        The disadvantages of the current development of the LED industry in mainland China are: 1. The technological level of LED products of domestic enterprises still lags behind that of overseas, and they are at a disadvantage in gaining high-end customers; 2. The basis of domestic integrated circuit manufacturing is compared with those of Japan, South Korea and Taiwan. Strong regions are weak, LED epitaxy, chip manufacturing capacity, process level and peripheral material matching capabilities are poor, and the learning curve is longer, and it takes some time to cultivate; 3. The scale of domestic LED companies is still relatively small, most of which do not exceed 100kk/month Production capacity (blue-green light), this situation will improve in the next two years; 4. Domestic R&D is mostly concentrated in universities and research institutes, and production is in various enterprises, and there is a lack of a rapid conversion mechanism for the industrialization of R&D results. This aspect should be used for reference The technical achievements authorization mechanism of the Taiwan Industrial Research Institute speeds up the conversion of technological achievements. Research institutes cannot industrialize themselves without transferring the latest technological achievements to the industry in a timely manner. The government should formulate relevant policies and regulate relevant behaviors; 5. Domestic core The lack of patents, especially the lack of blue light core patents and white light patents related to the long-term development of the industry, will restrict the long-term development of the domestic industry. At this stage, Chinese local companies are still in their infancy. They are small in scale and pose no threat to large companies that hold patents. Patent issues are not very prominent. However, with the development and growth of domestic enterprises, once the scale is expanded to a certain extent and the "going out" development strategy is implemented, patent issues will become hidden dangers. At present, for domestic enterprises, increasing the scale, improving product quality and technical level is the primary task, improving the ability to ask for the future patent authorization of major manufacturers, or gradually breaking through core patents through research and development.

        We believe that the LED industry has good development prospects in China based on the following points: 1. As far as technology is concerned, LED has the characteristics of high technological growth bottleneck and low learning threshold. The domestic research resources accumulated for a long time in the semiconductor field can be used. , Have a good research foundation. Although the domestic integrated circuit manufacturing foundation is relatively weak and the level of technology is relatively low, some domestic companies have continuously made technological breakthroughs by hiring overseas technical personnel to join. The technical level of domestic good companies is not much different from that of major Taiwanese manufacturers. The overall gap with international manufacturers is also getting closer; 2. LED investment is relatively small, with an initial investment of 100 million to build a factory, and domestic enterprises have low entry barriers and are easy to achieve rolling development. This is similar to integrated circuit manufacturing and LCD panels. Manufacturing investment of billions to tens of billions of yuan at every turn is “insignificant”. Domestic companies are easy to enter and form industrial clusters. Of course, it may also cause vicious competition and require market integration to a certain stage. Third, the domestic market is huge, LED The main market in the future is the general lighting market. The market capacity is large, the terminal consumer market is relatively fragmented, and it is not easy to form a monopoly. Domestic companies have a vast living space; 4. Some domestic companies have core intellectual property rights, such as Lattice Optoelectronics silicon substrate gallium nitride blue light The project, Dalian Lumei’s core technologies in the chip field, are globally competitive. These companies are likely to form a demonstration effect in technological development and promote the healthy growth of the domestic enterprise market; 5. After the technology is mature, the LED downstream packaging and device production are labor-intensive , The mainland has a labor cost advantage for development.