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LED lighting industry overview LED applications are divided into two categories of display and lighting. A new type of illumination using light-emitting diodes (LEDs) as a light source is called semiconductor illumination, referred to as LED illumination. The industry dominated by semiconductor illumination is called the LED lighting industry. The LED lighting industry chain includes upstream raw materials, equipment (single chip) and epitaxial growth; midstream chip manufacturing; downstream packaging and product development, production and application; supporting industries including related equipment, accessories, materials, etc. The upstream link has high technical content, large capital investment, large quality impact, high profit margin, LED luminous color and luminous efficiency are related to the materials and processes for making LED, and upstream accounts for about 70 LED manufacturing costs, which is extremely important for the LED industry; Technology and capital-intensive links, the chip is currently the most fierce part of the patent competition, with the characteristics of strong investment intensity but slow effect; the downstream links include the development and production application of LED packaging and lamps, which is the most closely related link with the market. Relatively low, the investment threshold is also low, so it is the largest and fastest growing field in the LED industry.
The current LED lighting industry status LED lighting industry is in a period of rapid development, the current global LED industry can be divided into four major regions. First, in Europe and the United States, the general lighting is the main direction, emphasizing the high reliability and high brightness of the products. Second, Japan is the most comprehensive technology. Whether it is general lighting or backlit display, it has strong strength, and its development direction takes into account general lighting, automobiles, mobile phones and television. Third, South Korea and Taiwan, with notebook display backlighting, LED-TV backlighting and mobile phone backlight as the main direction, with large shipments, low unit prices and low gross profit. Fourth, the mainland of China, focusing on yellow-green light, focuses on outdoor display, advertising screens, and signal lights.
Under the dual pull of domestic industrial policies and international market demand, China's LED lighting products market is also accelerating. At present, global LED production capacity is shifting to China, and around 50 LED packages and more than 60 LED applications are being carried out in China. China has become the fastest growing region in the global semiconductor lighting industry.
Domestic LED lighting industry development policy With the inherent advantages of energy saving and environmental protection, LED industry has become a powerful engine to start the green lighting revolution. It is known as the golden intersection of new light source and new energy, and continues to receive support from the state and local governments at all levels. At the beginning of 2006, the State Council issued the Outline of the National Medium- and Long-Term Science and Technology Development Plan, which included the high-efficiency, energy-saving and long-life semiconductor lighting products in the first priority theme (industrial energy conservation) of the first key area (energy) in the medium and long-term planning. At home and abroad, it attracted widespread attention; in October of the same year, the National 11th Five-Year Plan 863 Program Semiconductor Lighting Project was officially launched. On January 10, 2008, the Ministry of Finance and the National Development and Reform Commission (hereinafter referred to as the National Development and Reform Commission) jointly issued the Interim Measures for the Administration of Financial Subsidy Funds for Efficient Lighting Products Promotion to promote the rapid development of the LED industry. On November 4, 2011, the "Notice on the gradual ban on the import and sale of ordinary lighting incandescent lamps" issued by the National Development and Reform Commission and the five ministries and commissions clearly stated that the incandescent lamps will be phased out and planned to be October 1, 2016. Incandescent lamps will completely withdraw from the market. The National Development and Reform Commission also organized the drafting of the 12th Five-Year Plan for the semiconductor lighting industry, and will work with the Ministry of Finance to study and formulate measures to encourage LED promotion. The promulgation and implementation of this measure will greatly promote the lighting industry in China.
At the same time, in the context of energy conservation and emission reduction in the 12th Five-Year Plan, the Chinese government has also issued a series of incentive policies for public lighting, speeding up the pace of environmental protection, energy conservation and emission reduction in China, expanding the domestic demand for LED products, and accelerating the application of LED lighting products. . It includes related system projects such as ten cities, thousands of miles, green lighting cities, etc., to promote the awareness of LED lighting products and create a good market space for them.
With the further development of LED's role in energy conservation and emission reduction, the transformation of related industries, and the transformation of economic development mode, China is expected to introduce more powerful LED industry development promotion measures, and its policy space and market space have great potential for improvement. .
China's LED lighting industry standardization status After the development in recent years, China's LED industry has basically formed a relatively complete industrial chain. At the same time, the development of LED lighting standards and the establishment of a standard system have entered a stage of rapid development. At present, the domestic standard projects involving LED and semiconductor lighting have basically covered all links of epitaxial chips, packaged devices, product applications, test equipment and other industrial chains.
China's LED lighting industry distribution status (1) Driven by the national semiconductor lighting project, China has established seven national semiconductor lighting engineering industrialization bases in Shanghai, Xiamen, Dalian, Nanchang, Shenzhen, Yangzhou and Shijiazhuang. The distribution of the domestic LED industry is as follows.
(1) Pearl River Delta: mainly concentrated in Shenzhen, Zhongshan, Foshan, Huizhou, Guangzhou, Jiangmen and Dongguan. The Pearl River Delta region is one of the most active and fastest regions for the development of semiconductor lighting industrialization in China. Its packaging and application are the largest in China, and it is the closest to the market, with active investment and more overseas companies. The most obvious competitive advantage is the market advantage. At present, the LED lighting consumption in Guangdong market accounts for 50% of the country. Among them, Guangzhou's industrial base is concentrated in high-end service platforms such as R&D, testing and design, and downstream packaging. Shenzhen semiconductor lighting industry has initially formed a complete industrial chain of sapphire epitaxial die packaging applications. It mainly focuses on downstream packaging and application fields, and has extended the epitaxial chip manufacturing of upstream and midstream.
(2) Yangtze River Delta: In the Yangtze River Delta region represented by Hangzhou and Ningbo in Shanghai, Jiangsu and Zhejiang, the LED industry has strong supporting capabilities, high-end applications, and concentrated talents and funds. Among them, Shanghai has shown a good industrial development trend in semiconductor chip manufacturing and packaging applications, and formed a relatively complete industrial chain and enterprise group; Jiangsu semiconductor lighting industry is driven by the development of electronic information industry, currently in semiconductor lighting Packaging and application have begun to take shape; Ningbo has a solid industrial base (starting earlier, at the same time for the lighting production base) and economic location advantages. 
November 03, 2023