Business failures with a variety of industry problems LED road where

LED this term in recent years for many investment companies are full of charm. Under the guidance of a variety of favorable policies in the country, the domestic LED industry in the past two years, the rise of a wave of frenzied investment boom. In the expansion of the expected revenue stimulus, a huge amount of capital investment has created a lot of projects. And this year, involving the continued collapse of LED companies really poured cold water on the industry. A large amount of capital investment, immature technology, as well as vicious competition and other unhealthy market environment, the risk of LED industry continues to increase.

Zhongshan billion LED business failures

In July 2nd this year, Guangdong Zhongshan City, a scale of more than billion lighting factory boss suddenly and about 50000000 yuan loans have never been heard of since, behind him is owed hundreds of workers and wages. Recently, the ancient town of Zhongshan city government informed xiongji Lighting Factory operators suspected escape, alleged contract fraud and refused to pay labor remuneration. The local police have launched a criminal filing procedures for the formation of a special task force on the arrest of Xiemou and other personnel involved, and the inventory of goods shipped to public property warehouse. At present, more than 300 male employees have more than one million wages paid by the town government in advance, while the male record of more than 40 million of the purchase price of the supplier is still not landed at present.

Business owners fled this is not a new thing, but this is the name of the owner of the lighting factory has attracted people's attention, the key factor is the transformation of the enterprise in recent years, the production of LED. In this year, China has a number of LED manufacturers broke collapse, including the scale of billions of dollars or even billions of enterprises.

Vicious competition into bankruptcy Guide

Reporters learned that, since 2010, with the state to increase investment in the LED industry, a variety of favorable policies to make the LED industry began to enter the crazy stage of investment. For the future market is expected to benefit from the infinite yearning for many traditional lighting companies have been directed at LED, and the male is one of the.

These companies turned around in a hurry is often very backward in technology, even if the production line is also based on traditional lighting ideas. The low end of the technology led to lack of competitiveness of products, can only take the low-cost route to seize the market. It is understood that, in order to remember, for example, the production of LED bulbs out of the price of only 3.8 yuan, according to this price, even if the cost is difficult to fill. The final result is to grab the market at low prices led to the scale of over one billion yuan Lighting Companies in China LED market, the first death.

In fact, according to industry sources, there are still many production enterprises such as Xiong ji. The Guangdong Zhongshan LED industry is more concentrated area, according to statistics Zhongshan Municipal Science and Technology Bureau, Zhongshan 2012 LED of more than 1200 enterprises, of which more than the size of nearly 100 enterprises, employing more than 70 thousand people, in 2012 the output value reached 35 billion 650 million yuan. Only in the ancient town of a region is the largest professional production base and wholesale lighting, in 2012 the total output value reached 15 billion 810 million yuan, accounting for more than 60% of the national market share. Many of these companies do not have upstream core technology, only in the form of production and processing production. And the number of enterprises increased, resulting in excess capacity in order to compete for the market and they had to lower sales prices. But with a certain technical content of the LED industry, to depress prices and to maintain production, many companies have begun to reduce costs in the accessory materials and processes, and its products are extremely difficult to guarantee the quality of. This vicious competition directly led to the current domestic LED production industry malaise.

Urgent need to introduce industry norms

Government policy to support the development of LED industry, but there is no guarantee on the technical specifications of the industry. "There are people familiar with LED industry pointed out that the current look LED industry is in fact difficult rash and too much in haste. It is understood that the domestic LED industry started relatively late, most of the domestic enterprises do not have any core technology, most of the technology patents are in the hands of some large foreign enterprises.

Lack of technical support, the only way to expand the scale of the market at low prices has now been proved unsuccessful. "The technology heteronomy, but more important is the industry standard vacancy. "These people told reporters that at present it seems a lot of people in LED is a gold mine, as long as you can dive in and can make money. In this way of thinking, there are few companies will dive to engage in technology and R & D. In fact, the industry is very fast technology updates. From 2010 to date, the crazy investment in the LED industry, the upper reaches of the field is the most involved in the field of epitaxial chips, due to the huge amount of money needed, the domestic billions of billions of projects in the past two years can be seen everywhere. These projects are now fresh to see the bright spots, most of them become a means of financing.

The collapse of the male record for the LED industry once again sounded the alarm. At the same time, it also aroused the concern of government departments. As the largest gathering of the LED industry, it is understood that the Guangdong city of Zhongshan has been in the preparation of the "LED industry development plan in Zhongshan", will develop LED industry development policy and strengthen the industrial planning on the agenda.

Industry cooling or provide opportunities for change

This year, the collapse of LED companies make a lot of blind investment in the industry to enhance vigilance. According to LED Industry Research Institute data show that in the first half of 2013, China's LED industry added 37 billion yuan of investment planning, down by 16%. 2013 LED investment in the industry has been the focus of the previous two years by the sapphire, outside