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China LED supply chain in 2015 will pose a threat to the world

LED industry in China is very hot. Although China's LED market is still very young, but the Chinese government and enterprises are investing heavily in the field.

Compared with the United States and Taiwan, China's LED manufacturers in the technical capacity is relatively backward, and the lack of experienced management team and R & D engineers. China also lacks the core and upstream intellectual property (IP), such as MOCVD devices and LED epitaxial chip technology. However, Chinese LED manufacturers can get sufficient funds from the government, this advantage allows them to seize the huge demand for China's LED in the near future.

In order to encourage enterprises to invest in the LED market, some of China's local government subsidies, in line with the relevant conditions, the purchase of MOCVD equipment companies to provide 8 million -1000 yuan subsidy. In addition, the local government also provides tax and Hydropower concessions.

ISuppli optimistic forecasts show that from 2010 to 2012, the annual LED related investment will reach $3 billion 500 million, indicating that China's LED supply chain will be a threat to the global industry in 2015. In addition, with the support of the government and LED has gradually entered into the field of application of liquid crystal TV and general lighting new, iSuppli predicted, LED Chinese 2014 revenue will reach $7 billion 100 million, and $3 billion 400 million in 2009, the compound annual growth rate of 12.8%. ultra high brightness (UHB) LED grew faster, by 2014 sales will be increased from $686 million in 2010 to $1 billion 800 million, a compound annual growth rate of 26.9%.

LED market dispersion

Chinese LED market covers numerous applications, including LED display, street lighting, general lighting, traffic signals, mobile phone keyboard and digital camera flash and backlight, large size LCD TV, notebook and other displays. In total, the strong growth of China LCD backlight market, 2014 sales will rise from $468 million in 2010 to $1 billion 200 million, a compound annual growth rate of 25.7%. in addition to a variety of LED applications, general lighting will be the new long-term demand drivers. In view of the global emission reduction trend, the general lighting market demand for LED will grow. LED low power consumption and conducive to the environment. ISuppli estimates that LED shipments in the general lighting market in 2010 will account for the overall LED market 18.4%.

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