Enhance the competitiveness of LED in the upper reaches of the key

LED companies want to get involved in the upstream chip industry, which is an inevitable trend. However, it must be recognized that the risk of upstream investment projects is very large, the key is the market and technology positioning.

Light emitting diode (LED) makes the opening ceremony of the 2008 Beijing Olympic Games, the Olympic Games will play an important role in promoting the development of China's LED industry.

LED industry promising

The use of LED in the Olympic Games makes LED more popular, people know more about LED. Because LED officially boarded the Olympic Games the world class "in good taste" makes the application of LED technology is facing more opportunities, greater demand will occur in other major events like World Expo. The demonstration project of each region, will design and products in favor of more LED, the enlightenment is: LED industry will have a brilliant future; LED used its place, it must have good social and economic benefits.

But it must be noted that LED's mainstream market should not only be in a few special major projects. We need to understand what is the focus of the development of LED industry. Previously, I mentioned the development of the domestic LED industry is not the same as Europe and the United States and japan. The focus is on display, landscape lighting and backlight. Small size backlight is a red sea industry, large and medium size backlight in the initial stage, but the technical requirements are high, the channel is limited, for domestic enterprises to enter the threshold is very high. The display and landscape lighting, there is a huge market potential. In addition, cars, roads, tunnels, underground parking and some commercial and indoor lighting also has a huge market space, should be concerned about.

However, the reality is that China's LED industry wall outside the wall incense. The causes of this situation are the following factors: Europe and the United States and other countries or regions pay more attention to energy conservation and environmental protection, so pay attention to LED product application; their purchasing power is relatively strong, for some products, the current price level is close to the acceptable range; for some Brand Company, they focus on product novelty and new technology for lead. Active attitude to use and promotion; ability standard, standard system of their own market channels. The domestic enterprises are relatively weak, weak purchasing power of consumers, the standard serious lag, which makes the large-scale use of LED products and marketing becomes very difficult.

Involved in the upstream industry is inevitable

To get rid of production, use small, must start from the following aspects: to improve the environmental consciousness of consumers; accelerate the development and promotion of standards; through technological innovation, greatly reduce the cost of LED lighting products; countries should put on LED energy industry support policies as soon as possible.

At present, the domestic mass production of epitaxial chip enterprises is about 20 or so, the technological level of products at low (most are low-grade), cannot be widely applied to the high quality of the display, and large size LCD backlight (LCD) and other high-end applications, can not meet the demand of domestic most packaging enterprises.

LED companies want to get involved in the upstream chip industry, which is an inevitable trend, because we are optimistic about the industry. With the gradual maturity and growth of the industry, the industry chain profits will gradually focus on the upstream areas. And the upper reaches of the investment intensity, high technical threshold, not everyone can do. This project will also feel better. However, it must be recognized that the risk of upstream investment projects is very large, the key is the market and technology positioning.

The development of the upstream industry is facing the biggest problems in several aspects: first, the concept, but also cognitive issues. If our investors and managers for the good LED epitaxial chip factory should look like what is not the concept, how do they build such a business. Only self-taught, feeling the stones across the river, resulting in a huge cost and opportunity cost.

The second is the operating system, the extension chip is truly belong to the high-tech, it requires a standardized operating system to guarantee, such as how the research achievements into production, how to implement the inspection and quality control of online, how to carry out personnel training, how to grasp FQC (final quality control) and OQC (outgoing quality control). How to achieve seamless connection with sales, customer service and so on, these are the need to ensure a complete set of management system, otherwise it is impossible to provide customers with low cost and high quality chip products. Once again, the team, we use the mercenary way to carry out technology and cash transactions, but often ignore the cultivation and establishment of their own talent, the company is difficult to form in all aspects of accumulation.

Finally, the low degree of localization of key equipment and basic raw materials. Our resources are scarce, and only resources are not fully utilized. Products have been in a lower grade, low yield, low added value. The solution is to change the concept, attach importance to the establishment of operating system, pay attention to quality, pay attention to the cultivation of talent team, the implementation of an effective incentive mechanism so that key employees can grow together with the enterprise. Countries need to make great efforts to support the localization of key equipment and basic raw materials, while colleges and universities to open the relevant professional, train more and more professional in the field of upstream epitaxial chip.

Pay attention to packaging innovation product development

In the past 5 years, the domestic LED packaging has developed rapidly both in technology and production, and has a strong competitive edge in the low-end products. But on the whole it is still