LED: large market space, more opportunities for enterprises

Compared with foreign countries, there is a gap between technology and brand strength in China's LED technology, but at present, China's market capacity is large, and the end consumer market is diversified. This technology is relatively backward enterprises have a greater role in the protection and support, the market is not easy to form a monopoly.

Lack of core competitiveness

China's LED technology and the lack of brand strength, directly lead to high-end applications in the LED market for high-end customers lack of competitiveness.

Among them, there is a stable process between technology and industry issues. LED industry is currently the main means of technology introduction digestion and absorption, stable process to a certain extent is more important than technology issues.

A lot of new companies to explain the contradiction between high technology and low output: "our technology is very advanced, but it needs to be further stabilized. "And a lot of relatively mature enterprises, in the face of market, brand and other issues, the core of the subject is often" stable "rather than technical issues.

Many times we do not want to face their own gap, always stressed that he has reached the level of technology, and how close to the international advanced level. But in fact, we know that the first bright blue LED chip in 1993, the ability to form a bulk supply market is 5 years later. We also know that technical success may only take 3 months or less, but the process is mature but takes 3 years or even longer.

This is also the introduction of so many local enterprises in recent years, the overseas technical team, technical elite, but can not be the most fundamental reason for the success of a successful enterprise. Enterprises tend to have technical elite, but there is no process elite". Successful business operations rely more on process teams than individual technical elites.

At the same time, the gap between scientific research and industrial transformation is a big problem.

In fact, the leading enterprises in the same industry now occupied, in the process of growth has a role in universities and research institutions, it should be said, only from the perspective of substantive cooperation, the cooperation of few successful examples, but the technical achievements of scientific research institutions is still the most important way to the healthy growth of the enterprise, the reason is the scientific research institutions and enterprises will need their in-depth review.

Market capacity into the threshold low

However, China's development of LED technology and industry also has certain advantages. First of all, China's market capacity is large, the end consumer market is a diversified structure.

In particular, is one of the leading companies in the world, in fact, at this stage is not in the pursuit of the expansion of production capacity, but to wait for the right time to enter the general lighting market in the leading technology trend, at the same time actually let go part of the technical requirements are relatively low, scattered the terminal application market, and this pattern is also expected to maintain a longer during the period, which gives companies a growing and catching space to a certain extent.

LED technology study and the entry threshold is actually relatively low, the investment threshold is not high, even if the investment is the highest demand upstream, compared with the hundreds of billions to the target market size, and even hundreds of millions of billions of investment on high.

At present, it is in the development stage of unprecedented scale of liquidity funds, which is very easy to form LED industrial clusters. Of course, the maturity of the process, the expansion of the scale needs more time, but this is a matter of course, as long as there is a return on investment, nothing more than a return on what the main issues embodied. At present, the leading enterprises in the technical level and the gap between the international manufacturers are also constantly narrowing. Of course, there may be caused by vicious competition, but this is only the pressure on individual companies, the industry is concerned, to a certain stage of market integration can be.

In addition, the issue of intellectual property rights, although the pressure on the LED industry is relatively large, but also non space. The main technology of LED patent is not a monopoly, or the nature of all these long, international companies in the patent protection strategy is not consistent, European and American enterprises more active in patent licensing, to Japanese companies more pressure.

On the one hand, China's enterprises to obtain patent licensing costs will be gradually reduced; on the other hand, to strengthen its research and development for cross licensing opportunities is also increasing, so the way in our country is very easy to form a demonstration effect.

Source: China industry news