Global LED Capacity Shift in Large-scale to Chinese Market

Published:2011/3/10 21:54:00 Author:Amy From:SeekIC

Recent years, Chinese LED industry has come into a new stage of development. A good many of LED firms emerges with vast investment by firms and government and grab attention of global industry. Some local enterprises like SAMAN, ETI and BLUELIGHT successively amplify production capacity and build new plants. Besides, other LED giants also accelerate their layout in China mainland.

A senior researcher and consultant of CIC indicates that from the point view of international situation, global LED capacity is trending toward Chinese market by the reason of rapid expansion of China industry, which generates pressure for mainland LED firms. Despite presently the expenditure of labor force is increasing in China, the advantage of labor cost still exists. What’s more, Chinese government’s policy and financial support for LED industry also attracts foreign capital for investment.

Enterprises in Japan, Europe and America are technology-and-patent-oriented which take a significant position of the entire industry. At present, the domination in lighting market is Japan, Europe and America, which can be a threat for Chinese enterprises because there is doubt that LED will be the main stream market in the future. Therefore, no matter LED manufacturers or lighting firms successively turn to lighting field. On the other hand, the second tier enterprises such as Taiwan and Korea now occupy leading position in backlighting market and are regarded as the main stream firms at the moment. They are very active in research and development for lighting market.

According to the report of CIC, Chinese mainland mainly supplies low-end landscape illumination LED products for the market. The situation of backward in LED industry in mainland can not be changed in short-term. CIC’s report shows that domestic enterprises have lower added value with less prominent market share because of decentralizing business management and location of low-end products. As a result, if domestic firms want to have a good performance in LED backlight field, they should have more technology support seizing the opportunities of industry transfer. The related integrated circuit is 5611.

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