According to industry sources, demand for the first half of last year, the strong performance of indoor LED lighting, LED companies said medium power shortages LED indoor lighting products, including light bulbs, fluorescent tubes, embedded lighting. Industry insiders estimate that last year China LED lighting market will grow by 50%. Therefore, some of China's LED business may restart production capacity expansion. Even so, the impact on the healthy development of LED industry, risks still exist.
The first is the technological innovation capability is weak, as the representative of the chip technology products value chain is still mainly lies in the hands of foreign companies. For example, more than 980 sets of MOCVD our existing machines are basically imported, middle and lower reaches critical equipment is imported mainly to industrial growth of potential problems.
Second, the lack of leading enterprises in the industry to lead. Occupy a large number of SMEs in the low-end market, the price war, the product quality is worrisome. Our large-scale LED companies billions of dollars in annual revenue only, with annual sales of ten billion U.S. dollars with international giants scale far.
Finally, China is still the existence of direct subsidies to producers, and policy guidance to be standardized. Currently, governments at all levels to promote the introduction of a number of policies intended to subsidize assistive technology is innovative, but was some businesses to expand production capacity, resulting in unfair competition and capacity sprawl, disrupting the original market order, the need for policy adjustments .
