China LED lack of core technologies

At present, the LED industry like the photovoltaic industry that upstream defects of core technology. Data shows, although more than 4000 domestic engaged in the LED industry manufacturers,the whole of China mainland LED output value is 205.9 billion yuan in 2012,159 billion yuan belong to downstream terminal application, accounted for 77.2%, while the upstream LED chip output value 7.2 billion yuan only, accounted for 3.5%.Our country LED is lack of core technologies, leading to the development of the industry structure extremely unbalanced.

Worrying is that,in the LED excess investment had tendency of the moment, there are still many local governments are still in this heat. In many local government point of view, although at present our country to lack of core technology,due to its application field widely, the vast domestic market. LED industry is a sunrise industry of national support, development prospects still look good.

LED because of the characteristics of energy saving and durable favored by the market, but LED the price is too high, the industry is still immature also influence its development. While from the point of industrial growth trend, the development of LED industry speed may soon, but growth is the result of the combination of incremental market and stock market, not by the government to
keep everyone happy can get them. If the government investment in production capacity expansion,once far exceeds the demand, will no doubt increase the existing overcapacity, LED industry is in danger of into pv footsteps.

As policy dependence of the LED industry, its development will surely need policy scientific and stability. But the government should reduce the direct intervention,and avoid local protection, make the market reversed transmission mechanism, encourage enterprise merger and reorganization, and eliminate backward production capacity. "Visible hand" should be given more suitable for the industrial development of the standard and testing system.