Four major core points of Chinese-style LED industry structure

China's LED industry has begun to take shape and entered a period of rapid development. The annual sales revenue of the LED industry exceeds 150 billion yuan, and the output growth rate is nearly 50%. More than 8,000 enterprises and institutions working in the LED industry have formed a complete industrial chain for epitaxial and chip manufacturing and packaging applications. At the same time, the industry also faces an incomplete patent standard system, an imperfect industrial policy, and a critical situation where key technologies are constrained by people. If we do not take effective measures, we will miss the opportunity for development and lag behind developed countries in a new round of industrial competition. China should speed up the improvement of the industrial environment and give full play to the guiding role of the government.

(I) Focus on key points and vigorously build a patent standard system LED epitaxial wafers and chips are the core components of the LED industry, occupying about 70% of the profits of the LED industry chain, and are also the most concentrated and fiercest link in patent competition. China's LED epitaxial chips lack core patents, especially the high-power epitaxial chips used in LED lighting are basically monopolized by manufacturers such as Career and Osram, and patent issues have become the core issue that restricts the development of China's LED industry. To achieve breakthroughs in core technologies, it is necessary to strengthen the top-level design, face common key technologies and key products of the industry, rely on the dominant units, and establish an open technology innovation platform that integrates production, research and application. Strengthen the standardization of LED lighting products, give full play to the role of standardization-related organizations, relevant associations, and research institutions, and form a technological innovation system and standard system with independent intellectual property rights.

(II) Regulating the market and establishing a sound product supervision mechanism Currently, LED lighting products on the market have problems such as false propaganda, confusion of indicators, and product safety. As a result, poor quality products occupy a large number of markets through unfair competition, and an effective product supervision mechanism is urgently needed. To regulate the market environment. This requires the role of the industry's competent authorities to be established, establish a sound market access system, improve industry access standards, regularly publish to the market the performance and safety indicators of high-quality LED lighting products, promote the elimination of inferior products, and establish a public inspection service platform for LED lighting products. Provide professional services such as standard formulation, product testing, qualification certification, and brand promotion; enhance compliance testing of product standards, speed up the construction of national-level LED devices, light source inspection agencies, and improve the level of detection and service capabilities.

(III) Controlling costs and accelerating the promotion of corporate core competitiveness Chinese LED companies face pressure to reduce costs and reduce prices. The cost pressure comes from two aspects. On the one hand, it is difficult to make up for the gap in cost between LED lighting and traditional lighting due to the energy saving benefits of products; on the other hand, it stems from the technical monopoly of a few foreign companies. Most profits of products are occupied by a few upstream manufacturers, while China Some downstream companies lack the ability to price products. It is recommended that enterprises develop a number of high-value-added products through the improvement of technological innovation investment, R&D, transformation, and application mechanisms, and establish a technological innovation system that combines the enterprise as the main body, the market as the orientation, and the combination of production, study and research.

(D) Reasonable guidance, prevent investment overheating and overcapacity LED lighting due to high product prices, uneven quality and other factors, the market potential is difficult to fully erupt in the short term, and many investors, manufacturers have begun large-scale investment and expansion Even some county-level government agencies are planning to establish LED industry parks. The overheated investment has caused a rapid expansion of production capacity, and there has been an overcapacity in the upstream and downstream of the industrial chain. In the current situation where the core patents for LED chips are under the control of a few foreign manufacturers, the blind expansion of production capacity will lead to homogenous competition, resulting in a decline in profits or even large-scale losses. To solve such problems, we should optimize the government and market effective coordination mechanism to minimize the risk and negative effects of excess capacity. On the one hand, it is necessary to adjust the industrial structure, actively promote the structural adjustment and upgrading of excess industries and the elimination of outdated production capacity; on the other hand, we must accelerate the improvement of the industry’s innovation capability, vigorously promote the innovation system, and improve the independent innovation system with enterprises as the main body.