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At the end of last year, the media published "Multi-site mandatory promotion of LED lighting products is accused of introducing industry disasters", warning the industry's predicament earlier.
It is a slogan. Recently, the Shenzhen Municipal Government quietly abolished the "Notice on Printing and Distributing the Development Plan of Shenzhen LED Industry (2009-2015)" issued in March 2009 in the form of the "Official Gazette". Left or right? The LED industry is entering a crossroads.
Shenzhen emergency brakes wake up
The policy changes in Shenzhen cannot stop LED fanaticism in other regions.
Recently, in the North City (Changchun) Green Lighting Forum, the Changchun High-tech Zone Management Committee and the Jilin Province Lighting Association jointly issued the “Proposal to Accelerate the Promotion of LED Energy-Efficient Lighting Products in the Provinceâ€, and the Changchun High-tech Zone will build The planning of the 100 billion LED industry base was also unveiled.
The endorsement of the company's production enthusiasm is a collective decline in the performance of listed companies. The 2012 annual report released by major LED listed companies shows that corporate performance was generally low last year. For example, in the LED chip and epitaxial wafer enterprises upstream of the industrial chain, Huacan Optoelectronics (300323), Silan Micro (600460), Ganzhao Optoelectronics (300102), and Dehao Runda (002005) net profit declined in 2012. 29.93%, 40.11%, 39.02%, 57.14%. LED crystal material supplier Fujing Technology (002222) net profit fell by 36.50%; LED power supply Maoshuo Power (002660) net profit fell by 11.55%; LED luminescent materials company Keheng shares (300340) fell by 80.62%; LED The net profit of packaging company Changfang Lighting (300301), Lehman Optoelectronics (300162), Hongli Optoelectronics (300219) and Guoxing Optoelectronics (002449) decreased by 27.45%, 31.59%, 35.27% and 67.36% respectively.
Shenzhen Ruwei Electronics Co., Ltd. is a supplier of large LED companies such as NVC. According to a person close to Shenzhen Ruwei, the reporter said: "I don't feel the impact of Shenzhen's policy adjustment on Shenzhen Confucianism. On the contrary, the company's orders are not finished, and the salesmen are not allowed to go out to take orders."
Another Mr. Tang, who is doing investment management, also told reporters that he knows that a certain LED enterprise product in Shenzhen is for international markets such as Eastern Europe. At present, he has not seen any impact on production capacity.
The industry predicts that the structural overcapacity of the LED industry will continue in 2013.
In an interview with reporters, industry experts said that Shenzhen’s call to stop LED industry planning has a vigilant effect on this industry. If local governments continue to launch blindly, their losses may not be estimated.
The game between government and enterprises
"Actually, this is a game between the government and enterprises." Hu Jun, who has been dissatisfied with the promotion of LED road lighting in Guangdong Province, and the Guangzhou lighting industry professional who wrote the Guangdong Science and Technology Department, said in an interview: " Local governments want to use the land finance method to attract high-tech parks to attract corporate investment to boost GDP, while LED companies have taken a look at the market under the government's administrative orders after high-tech subsidies and vigorous promotion. This is like a couple in bed dreams, and finally It must be breaking up."
“The government established an industrial park. This year was because the industry was defined as a high-tech industry. The government hopes to bring more taxes, so it will give certain subsidies. I hope to make this industry bigger and stronger, and build hundreds of billions of dollars. Hundreds of enterprises." Hu Jun provided reporters with a data: After several years of support, the largest LED companies in Shenzhen are only worth more than 100 million yuan, but if the government develops Internet or biological and other emerging strategic industries identified by Shenzhen, casual A project has exceeded 100 billion yuan. "In such an industry, in Shenzhen, where land resources are so tight, the government obviously has to give up."
“I have seen the LED industry park. When the scene was ragged, the brand was erected, and then I could go to the mortgage.†Hu Jun described to the reporter the LED industry park he had seen. “Most of them are like this.†First, lay the foundation, build a factory, and then lie to the government's subsidies. The government is not so deceiving now, generally you don't do it, I don't make up, the government is now very rational."
However, the Guangdong Provincial Department of Science and Technology does not seem to fully agree with the practice of Shenzhen. The reporter interviewed Lin Xiaoyong, director of the Office of the Science and Technology Department of Guangdong Province. He said that the Guangdong Provincial Department of Science and Technology is not clear about why Shenzhen has stopped the LED industry planning, but Guangdong Province will continue to vigorously support this industry.
Industry experts told reporters that overcapacity is one of the important measures for the current economic transformation and structural adjustment. It is imperative to have a determination to break the wrist and avoid a one-size-fits-all approach. In addition, how to use the "invisible hand" and "tangible hand" together, also need to be explored.
The government was accused of involvement
Information from the website of the Central People's Government shows that the National Development and Reform Commission, the Ministry of Science and Technology and other ministries jointly issued the "Semiconductor Lighting Energy Conservation Industry Plan" in February this year. According to the "Planning", the output value of LED lighting energy-saving industry will increase by about 30% annually, reaching 450 billion yuan in 2015 (including 180 billion yuan of LED lighting application products). The industrial structure was further optimized, and a number of distinctive semiconductor lighting industry clusters were built. Form 10-15 leading enterprises with core technology, more independent intellectual property rights, well-known brands and strong quality competitiveness.
It is understood that due to the serious extrusion capacity of the upstream LED industry, the downstream market has not been opened, and competition among enterprises is fierce. At the same time, the lack of uniform industry standards for LEDs has led to low entry barriers, while high government subsidies and preferential tax policies have attracted a large influx of funds. Even many companies do not have the relevant technology, resulting in serious overcapacity in the industry. .
Some officials have revealed in private that perhaps the government is terrible or helpless. The entire LED industry has actually experienced overcapacity and even worried that the LED industry will become the second photovoltaic industry. Under this circumstance, many local governments will come to Shenzhen to “grab†LED enterprises to develop them. Many LED companies will go out of Shenzhen and expand and develop. The whole industry is in an impetuous and obviously overheated period, but many enterprises are due to water and soil. Dissatisfied and the local government policy was not honored, causing the capital chain to break and then closed down.
Some surveys have found that Shenzhen LED companies are experiencing a wave of bankruptcies, 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. Li closed down due to funding problems. Most enterprises point the core of the problem to the overcapacity caused by the enterprise's rush, and the global economic downturn makes it harder for domestic LED companies that rely mainly on exports to make profits. The profit decline is very strong, and the whole industry has survived. "Winter".
For the current LED lighting industry, Hu Jun said that it is necessary to let the "self-destruction of enterprises" and hand over the industrial development to the market. The government's involvement in too much is not conducive to the healthy development of the industry. The foresight of photovoltaics is worthy of vigilance.
(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.) 
Shenzhen emergency brakes alert LED industry government accused of excessive intervention
On the one hand, China's LED industry lacks core technology, and on the other side, LED is among the strategic emerging industries supported by the state; on the one hand, LED product prices have fallen by 35% for two consecutive years, and on the other side, there are more than one hundred LED industry parks built across the country. The production capacity of enterprises is gradually increasing.