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Recently, Shenzhen Enterprise Jufei Optoelectronics announced that it has reached a supply chain strategic cooperation with Japan's Toyota Synthetic (Tododa Gosei) and obtained its LED white light patent license. Subsequently, Essence Securities said in the research report on Jufei Optoelectronics: "The company and Toyota Synthetic signed a white LED licensing agreement to expand overseas customers more effectively in the future." And predicted that "the company will march from LED packaging to display device upstream materials," The industrial chain moves up the smile curve."
The patent is in hand and the overseas business is not bad. The chairman of Jufei Optoelectronics said in an interview that this cooperation has built a comprehensive patent protection from chip to LED white light application, which will better support the international expansion of the company and customers.
An industry insider told reporters that patents are an industrial development problem that Chinese LED companies cannot circumvent; due to the existence of patent barriers, domestic LED products are difficult to enter the mid-to-high-end international market. Domestic companies can obtain patent authorizations, and it is really good news for them to go out. However, to overcome the patent problem, Chinese LED companies still have a long way to go.
Patents are numerous, "gold" insufficient <br> <br> This appears to be a booming market.
According to data released by the High-tech LED Industry Research Institute (GLII), the total output value of China's LED industry in 2014 reached 34.45 billion yuan, a year-on-year increase of 31%. Among them, the output value of LED upstream epitaxial chips, midstream packaging and downstream applications increased by 43%, 20% and 32% respectively.
But behind the beautiful data, there are also some "å°´å°¬" hidden. China's LED industry is large in scale, but it is still mainly concentrated in the middle and lower reaches of the industrial chain, which is the area with low added value. "According to industry habits, the LED industry is generally divided into LED substrates, epitaxial chips, packaging and applications." Gong Yi, researcher of the Institute of Electronic Science and Technology Information, Ministry of Industry and Information Technology, introduced that by the end of 2013, China's mainland LED field patents 36,595 pieces, mainly in packaging, application and drive, and relatively few patents on epitaxial chips and substrates. Moreover, in terms of patent types, utility model and design patent applications account for a relatively large proportion, and invention patents are relatively insufficient; even in invention patents, patents in the field of chips and raw materials upstream of the industrial chain are difficult to trace.
"The homogenization competition of enterprises in the downstream sector is more serious, mainly due to price wars, leading to 'bad money expelling good money'. The crude and shoddy enterprises may stand on the market." Gong Yu analyzed the reporter. The lower threshold of the LED industry is lower and the competition is disorderly. Some powerful companies simply look to overseas markets. However, due to patent issues, overseas companies can only focus on downstream sectors with thin profits or buy chips from abroad to avoid patent risks.
What does it mean for Jufei Optoelectronics to obtain the white LED patent license this time? 
How does the LED industry move toward the "smile curve" upstream
Although China's LED lighting companies have formed an extremely large industrial scale, there are only a few LED lighting companies that have real technology research and development capabilities. As a big LED manufacturing country, the right to speak on LED patents is very small.