Analysis of LED industry

Under the guidance of the national strategic task of promoting the optimization and upgrading of industrial structure and cultivating new industrial growth points, LED has become the development focus of local governments. Shenzhen, Dongguan, Foshan, Huizhou, Dalian, Xiamen, Nanchang and other local governments have formulated industrial development strategic plans, which set off a boom of led investment in China. Guangdong, which accounts for nearly half of the total domestic LED output value, listed the semiconductor lighting (LED) industry as one of the three major strategic emerging industries in Guangdong in the “opinions on accelerating the transformation of economic development mode” released in May. LED industry in Guangdong has formed a competitive situation. Shenzhen, Dongguan and Foshan have listed LED industry as the pillar industry development. LED industry has shown a trend of full blossom.

The rapid rise of domestic led enterprises and the rapid expansion of production capacity have launched strategies to compete for the LED market. The upsurge of LED industry has almost swept the whole industry. Due to the low overall level of domestic LED product technology, domestic enterprises are generally small in scale, weak in technical strength and low in product grade. The LED market competition is fierce, and relevant manufacturers are fighting for price war. At the same time, there are also phenomena such as disordered investment and vicious competition in the LED industry. From the current domestic market dynamics and led industrial structure distribution, there has been a very serious problem of repeated investment.

In addition, there is a tendency to “lock up the local market” in order to protect the local market. If we do not break this kind of local administrative barriers, we will inevitably bring about convergence of industrial projects among different regions, directly increase the “industrial bubble” and hamper the development process of regional integration. Different regions should highlight different characteristics and avoid simple and repeated construction for short-term interests, which will lead to vicious competition in the future.