The "four mountains" hidden behind the LED industry

Abstract 2013 is destined to be an extraordinary year for the LED lighting industry. The giants are rushing to enter the market, and LED lighting seems to be a fragrant. When major lighting companies continue to applaud the results of their 2013 interim report, few people pay attention to LED lighting.
2013 is destined to be an extraordinary year for the LED lighting industry. The giants are rushing to enter the market, and LED lighting seems to be a fragrant. While major lighting companies continue to applaud their 2013 mid-year results, few people have paid attention to the difficulties faced by LED lighting.

As far as the status quo is concerned, after the LED industry has solved the cost problem through mergers and acquisitions or expansion, some problems are ignored at this stage. Some senior LED lighting technology engineers said that LED lighting currently faces four major problems: repeated local investment, shortage of core technology, lack of lighting standards and tight capital chain. These four major problems have been dubbed by four lighting giants in China as the four mountains on the way to LED lighting.

Local investment in repeated industries is “embraced”

Previously, regardless of the country's policy-driven promotion, or the market's own enthusiasm, it has established the status of LED lighting, the "magic of the sky." Including China's ban on incandescent lamps in October last year, it is almost an attempt to pave the way for LED to replace its market share. For a time, the lighting of the opening does not talk about LED, as if not only to return to the liberation before the night is so simple, I do not know to retreat to the "medieval" which is dark. However, no matter whether it is in the industry or outside the industry, there are not many people who really understand LEDs. The overwhelming people are clouding and tempering, and the prosperity of the LED lighting market is covered with layers of fog and piles of bubbles.

NVC lighting CEO Wu Changjiang said that the LED industry's production capacity has expanded blindly, and the terminal demand market has not kept pace. According to the data analysis of the research report, although the semiconductor lighting industry in China increased by 23% in 2012 compared with the previous year, the growth rate slowed down and became the lowest development year.

The maturity of the LED market is hot, but there are contradictions between the LED application itself and the current pessimism. As a new generation of green light source, the government has to make efforts to promote the application. However, the principle of "strongly unable to twist melon" is also warning us cold eyes. The promotion of subjective will and the actual and objective popularization are often carried out in two different ways. The so-called "the sky is going to rain, the mother wants to marry", it should at least be "free love", not "arranged marriage." To truly achieve the meaning of universalization, it is necessary to let the market gradually accept LEDs, and to artificially sell LEDs to the market and the public in a "time-limited subscription" mode.

Core patent lacks industry dominance out of control

In the past 10 years, the semiconductor lighting market has grown rapidly, and LED intellectual property has become the focus of competition in the international semiconductor lighting industry. Throughout the global LED intellectual property landscape, the core patents of the industry are still dominated by five major manufacturers including Japan's Nichia Corporation, Toyota Synthetic Company, American Cree, Philips Lumen, and Osram of Germany. Although the number of LED patent applications in mainland China has increased significantly in recent years, the number of applications has surpassed that of the United States in the second place, but China's position in the global LED intellectual property pattern has not been fundamentally improved. On the contrary, LED intellectual property rights are becoming a bottleneck restricting the development of China's LED semiconductor lighting industry. The homogenization competition caused by intellectual property issues is becoming more and more fierce. The problem of lack of industrial ownership is becoming more and more serious, and the risk of trade friction is also increasing. Breaking through the LED patent containment of foreign companies and dissolving the industrial crisis caused by LED intellectual property rights has become a key issue in the development of China's LED semiconductor lighting industry.

From the evolution of global LED patents, China's LED patent application process lags behind Japan and the United States. It missed the first phase of the patent technology pre-development phase and the second phase of the patent technology incubation phase, and directly entered the patent technology. Industrialization application stage. The impact is the imbalance of LED patent development in China. From the perspective of patent types, China's LED patents are mainly for utility models and design patents, and invention patents account for a relatively low proportion. Among them, domestic LED practical patents account for 59%, and design patents account for 15%, while LED inventions. The proportion of patents is only 26%.

China's LED patents are mainly concentrated in the middle and lower reaches, and the patents in the midstream packaging and downstream applications account for 64% of the total applications. Among them, LED applications accounted for the largest amount, accounting for 43% of the total patents, LED package accounted for about 21%, epitaxy and chip ratio were 18% and 17%, respectively, and the substrate accounted for about 1%. In terms of extension, the gap between domestic quantum well and buffer layer technology patents and foreign quantity and quality. On the chip side, domestic chip shape technology, surface roughening technology and substrate stripping and bonding technology are lacking in patents. In terms of packaging, China's patented technology has developed rapidly, but there is a gap between patents for pedestal materials and patents for fluorescent materials. Especially in the key technology links related to the long-term development of the industry, China still lacks core patents, such as blue LED excitation phosphor white light technology, graphic substrate technology, LED chip vertical structure technology, flip chip packaging technology and pulse width modulation PMW power supply. Drive technology, etc.

Lack of unified standards industry faces "premature aging"

As most LED products go through the sales channels of five-star building materials wholesale, the quality inspection department is difficult to supervise. The quality inspection department applies the general standard of general lighting to check LED lighting products, and it is difficult to filter LED inferior products.

In the market, the products are mixed, and the inferior products hurt consumer confidence. In the face of the huge market of hundreds of billions of yuan and the lack of standards and chaotic competition, 22 scientific research institutions, listed companies and leading enterprises in the mainland have officially signed a contract to establish a "standard optical component joint research alliance" for LED lighting.

These 22 units include National Semiconductor Lighting Engineering R&D and Industry Alliance, Guangdong Industrial Technology Research Institute, Dehao Runda, Jingke Electronics, etc.

Due to the lack of uniform specifications and standards, LED lighting applications on the market today have a wide variety of products, different performance, and poor interchangeability, which brings severe challenges to the entire industry. The research alliance of LED lighting standard optical components is intended to solve the problem that the interface software of LED lighting products is not uniform and the interchangeability is poor.

On the other hand, under the pressure of energy conservation and emission reduction, LED lighting is vigorously promoted from the country to the local. It is expected that the industry scale of China's LED lighting will reach 500 billion yuan in 2015. Therefore, all parties are seized the opportunity to develop standards. The LED lighting standards being developed by the country are mainly aimed at the light source effect and safety of the terminal products.

At present, Guangdong enterprises account for 60% of the national LED market share, more than 3,000 LED companies in Guangdong Province, employing more than 500,000 people. In 2011, the output value of the LED industry in Guangdong Province reached 150 billion yuan, which has grown substantially for two consecutive years. The output value of this year is expected to reach 200 billion yuan, an increase of 30%.

The capital chain is tight and “running” occurs

According to incomplete statistics, since July this year, only five LED companies have closed down in Zhongshan and Shenzhen. These failed companies have involved hundreds of suppliers, causing the negative effects to spread outward.

The newly closed Shenzhen Leixing Photoelectric Co., Ltd. is a company directly dragged down by arrears. According to the reporter's understanding, the company was established in April 2010. Before the bankruptcy, 1 million yuan of payment was delayed, and the upstream suppliers continued to collect money, causing the capital chain to break.

The issue of the capital chain has caused a high degree of vigilance on the banks. According to public reports, a Guangdong branch of a major bank has urgently notified its subordinate branches to warn of the risks in the LED industry. The branch believes that the investment scale of the LED industry is growing rapidly, the overcapacity situation is outstanding, and systemic risks are apparent.

In the LED industry, such a debt relationship will have a chain reaction once there is a problem in a certain link. This chain reaction is first manifested in the possibility of directly dragging a supplier. The impact of the chain reaction does not stop there. For example, if a display company goes bankrupt, its suppliers may be nervous. In addition to finding a returning company to recover the purchase price, the supplier may immediately seek other companies or customers for money, causing other companies to have tight capital turnover problems.

This industry chain itself is relatively tight, and once there is a place broken, others may break. When everyone is nervous to a certain extent, when there is no money to earn, there will always be people who fall. Once someone falls, there will be a chain reaction.

LED is a system project involving upstream chips, midstream packaging, downstream applications and other aspects. At present, each brand competes for price, but it is a means for LED lighting to seize market opportunities. On the way forward, the LED industry also needs to solve a series of problems such as the lack of standards and the shaping of core competitiveness. After the channel war and the price war, the LED industry should step into the long-awaited era of popularization.

Black Masterbatch is the most popular masterbatch during all color masterbatches.Black Masterbatch have the widest applications during plastic industry and production. Black Masterbatches could be devided into many catagories based on differentts proformances. Based on the carrieries, Black Masterbaches includes PE Black Masterbatches,  PP Black Masterbataches, PS Black Masterbatches, EVA Black Masterbatches, ABS Black Masterbatches, PC/Nylon Black Masterbatches so on.  Based on the applications, Black Masterbatches include Blowing Film Grade Black Masterbatches, Injection Black Masterbatches, Extrusion/Molding Black Masterbatches, Filler Black Masterbatch, Engineering Material Black Masterbatches so on.

Black Masterbatch

Black Masterbatch,Black Pellets Masterbatch,Carbon Black Masterbatch,Black Plastic Masterbatch

Anda Masterbatch( Group) Co., Limited , http://www.polymer-masterbatch.com