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Shenzhen LED industry used to be synonymous with Chinese LED. It is reported that the above-mentioned "Planning" is also the first LED industry plan in the country, and the relevant plans formulated by many cities are based on this. Therefore, the "plan" was abolished in the industry and caused a lot of shock.
“Overcapacity has become a major obstacle to the healthy development of the LED industry. In recent years, LED companies have emerged in the country, almost every county has a large number of low-end, low-cost products flooding the market.†In Hangzhou Luo Laidi Lighting According to Ma Yanbo, manager of Shandong Branch of System Co., Ltd., the LED companies on the scale are now living in the cracks.
Helpless
It is reported that the Shenzhen LED industry began in the early 1990s and developed very rapidly. In March 2009, in order to polish the "LED Shenzhen Manufacturing" sign, the Shenzhen Municipal Government issued the "Planning" and proposed to build Shenzhen into a national and even globally important LED industry R&D and production base. By 2015, the industrial scale will reach 130 billion yuan. the above.
This time, "Planning" was abolished. In Ma Yanbo's view, it is a helpless move by the Shenzhen Municipal Government to face the overcapacity of the LED industry.
"The current development dilemma of the LED industry has many similarities with the photovoltaic industry two years ago. Since LED has been used as a sample of the national energy conservation and environmental protection industry in the past few years, it has attracted a lot of capital intervention, especially in 2009 to 2010. In the year, there has been a wave of investment in the LED industry in China, which has led to the current market supply exceeding demand.†Industry insiders told reporters.
At the same time, the person believes that the Shenzhen Municipal Government is also calculating the input-output ratio. “LED companies need to occupy a large area of ​​land. Because the current market acceptance of LED products is not very high, and most of them are concentrated on low-end products. The profitability of enterprises is not very strong. The Shenzhen Municipal Government needs to make more scientific and rational allocation of limited land resources."
At present, Shenzhen LED enterprises are experiencing a wave of bankruptcy, not only small enterprises, but also several billion-level LED companies such as 钧多立, Haobo Optoelectronics, Bolunte and Vision Optoelectronics in just over a year. Closed the door due to funding problems.
"Overcapacity caused by the rapid development of the enterprise, coupled with the global economic downturn, the European debt crisis continues to linger, the subsidies for energy-saving products in Europe and the United States and other countries are reduced, the external demand is insufficient, the export market is shrinking, and the export profit is mainly relied on. The days of domestic LED companies are even more difficult," the source said.
Reduce costs and save yourself
"At present, many LED companies are seeking transformation, such as switching from single road lighting to bridgehead and building lighting, and hope to further expand the scope of existence." Ma Yanbo believes that the high price of LED products makes it difficult for the market to spread quickly. The main factor of high prices is the high cost of materials in production costs, especially chip costs, which account for more than half of the total cost. Its company is now making great efforts to improve its research and development and make a fuss about the shape of its products.
According to Wang Yong, manager of Jinan Office of Zhejiang Chenhui Lighting Co., Ltd., the most important task of LED enterprises is to improve their technology research and development capabilities and reduce production costs. “Only by lowering the cost to a level acceptable to the public can we have market competitiveness.â€
"The domestic mastery of the core technology of LED products has made rapid progress, but compared with the international top level, there is still a big gap." Ma said that regardless of the size, LED companies are working to reduce production costs through technology upgrades. In the past two years, the average production cost has been reduced by 30% to 50%.
“As long as the production cost of LED products is reduced to a certain extent, many advantages will be more prominently displayed, thus replacing traditional incandescent lamps and effectively popularizing the daily lighting of residents.†The above-mentioned insiders believe that this is the decision of LED companies to survive and die. The key is.
Missing standard
In Ma Yanbo and Wang Yong's view, in addition to high costs, the country has not issued corresponding quality standards for the LED industry, which is also a major obstacle on the road of industry development.
"Today, a large number of low-end, low-cost LED products flood the market. Because of the lack of industry-level quality standards at the national level, the public has no way to judge the quality of products." Ma Yanbo believes that this makes China's LED industry "high, low."
“The lack of industry standards has greatly affected the positioning and development of the LED industry.†Wang Yong believes that once industry standards are introduced, LED companies can compete in an orderly and regular platform to achieve production and sales. In many other aspects, the current problem of overcapacity can be effectively solved. “Market regulation competition is more effective than single government guidance.â€
“Government procurement is the main channel for LED enterprise product sales. The products it purchases require low prices and good quality. However, under the current procurement and public bidding methods adopted by government procurement, due to lack of industry standards, good quality products. It is impossible to win at all, but the low-priced products that blindly reduce costs are winning." Ma Yanbo sighs.
Promising prospects
In the pessimism and helplessness of reality, Ma Yanbo and Wang Yong are still full of confidence in the future of the LED industry.
"The development prospect of LED is very good. With the rapid advancement of technology, it must replace traditional lighting products." Ma Yanbo said, but because the price is too high, the retail market is difficult to expand, and a small-scale LED company has chosen to transform. Urban street lights, as well as large-scale projects such as shopping malls and hospital lighting lamps, have undoubtedly slowed down the pace of LED lights entering the home to a certain extent.
Wang Yong’s company has been operating traditional lighting products before, and has only recently entered the LED products. "This is the future direction of development. If it is not transformed in time, it will be eliminated by the market." Wang Yong said.
In this regard, the person in charge of the relevant department of the Shandong Provincial Economic and Information Committee told reporters that market awareness and promotion require a process. Although LED products are the future trend, its development is also related to production technology, policy support, and macroeconomic environment. All parties need to work together. 
In mid-March this year, without any explanations and reasons, Shenzhen Municipality abolished the Notice on Printing and Distributing Shenzhen LED Industry Development Plan (2009-2015) in March 2009 in the form of a government gazette ( Hereinafter referred to as "Planning").