LED industry event of a cold front. Lead the development of the EU into recession, coupled with the industry standard has not yet introduced, and focus on the development of Neo-Neon LED business issued profit warning, 90% LED lighting business at a loss, suggesting that there are undercurrents industry. Analysis pointed out that LED products varies greatly, but with the standardization and subsidy policies have been put behind and some of the excess products will be eliminated. LED lighting is still the trend, but to replace the century-old incandescent light, a real "Myriads of Lights" is still a long way.

　　From Europe and China gradually phase out incandescent proposed plan, as well as Japan and South Korea proposed subsidies to promote the development of LED industry, the large number of companies rush to pour into the LED industry, in the early stages of development, industry, the entry threshold is low, so that the enterprise engaged in the business a sudden influx of nearly 4,000. The EU proposed in 2007 to phase out incandescent lamps in 2012, the mainland announced in August this year, "China out of incandescent Roadmap (draft)," South Korea plans until 2015, won the use of 100 billion yuan of subsidies to promote private development of LED lighting.

　　According to statistics, China's 2010 output value of the traditional lighting industry $ 29 billion (RMB, same below), and LED general lighting output of 180 billion yuan, an increase of 1.4 times relative to 2009. Last year, the LED industry total output value of about 900 million, double 2011 analysis estimated to 180 billion yuan, the fastest by 2015, LED lighting market penetration in China could reach 20%, industry scale reached 500 billion yuan, 2020 was more on the look 1 trillion yuan. Such a large market, to attract a lot of money into. It is reported that foreign investment in the mainland last year, the LED market capitalization of about $ 10 billion this year from January to July, LED industry, new investment of more than 100 billion yuan.

　　Traditional lights are far less price competitive

　　Despite the huge investment, but in view of technical problems, that entry is actually about 70% of companies engaged in the downstream packaging and application services, and the two parts of the total profit of about 10% to 20% of the upstream and middle reaches of the wafer and chip business profits up to 70%. Industry sources say that the high-end chips, and now more than 80% from Taiwan or overseas, the core technology at this stage is still mainly concentrated in Japan and U.S. companies.

　　LED lights account for 40% to 60% of the cost of the chip, the high cost of raw materials and technology, leading to the loss of price competitiveness, the main reason for not successfully enter millions of households. Power than traditional incandescent light LED 5 to 9 times, the cost of traditional lamps are often more than twice the price of natural high. It is understood, however, in recent years, the price of the chip at an annual rate of decline of about 20%. In addition, the company has recently developed a technology that will reduce the cost of nearly Qicheng LED chip, and another company successfully reduced the price of an ordinary LED lamp energy saving lamp level.

　　In addition to technical improvements, conducive to the development of policy in the "five" plan to promote the next in succession. At present, Dongguan, Huizhou, Foshan, Shenzhen, Dalian, Xiamen, Nanchang, and the development of relevant industries in succession planning. Market rumors, LED industry standards and subsidies is expected by the end of the introduction.

　　Five non-standard inferior products into products

　　Some analysts pointed out that the standard in the industry before the inevitable problems are not introduced, the various manufacturers of LED products is different specifications and different ways, reportedly 50% of products on the market there is no standard inferior product.

　　Therefore, the market began to question the LED industry has a bubble of excess capacity began. Experts point out that, LED is the trend will continue, but at this stage LED industry is not mature, real LED lighting market is not started. Local governments have committed to LED lights as a breakthrough, pull the entire industry, focused on the current LED landscape lighting, tunnel lights, street lamps and other lighting products.

　　In the market is not mature before entering, inevitably some victims. It is reported that currently 90% of the LED lighting business at a loss, costs and prices in the LED business is the main cause of corporate profits under pressure. In addition, LED interior lighting to promote the financing of SMEs there is a big difficulty, there is a well-known earlier Shenzhen LED business owners on foot