China's LED industry may encounter crisis

In the past ten years, many companies have witnessed the changes in China's LED lighting industry from small to large. They have also witnessed the success of many companies relying on the government's huge subsidies, and the market has become saturated and overcapacity. So, how should China's LED industry go in the future? What role should the company play in it? In addition to subsidies, what measures should the relevant government departments take to support the development of the LED industry? In this regard, the National Semiconductor Lighting Engineering Research and Development and Industry Alliance (CSA) recently said that on the one hand, enterprises must understand the specific channel market and opportunities from overseas markets; on the other hand, the relevant departments must understand the actual needs of industries and enterprises, Only a more appropriate policy can be worked out. Subsidy policy implementation is not ideal In recent years, the state has been actively supporting China's LED industry, and subsidies for lighting companies are also very strong. According to the incomplete statistics of the reporters of the International Finance News, as for last year's situation, listed companies including Sanan Optoelectronics, Guanggang, Dehao Runda and Qinshang Optoelectronics all issued announcements of beneficiary government subsidies. However, according to CSA China, although semiconductor lighting products are gradually included in the scope of government financial subsidies, the actual completion is not very satisfactory. In this case, the primary factor is the low price and the number of subsidies. Dou Linping, secretary-general of the China Lighting Society, said that the product specifications are incomplete. An engineering project often requires different types of lighting products. If only one or two products are subsidized, the owner will have difficulty accepting this form and the enthusiasm for use will not be met. high. Finally, in the promotion period of energy-saving lamps, the relevant local government departments have different cooperation. The promotion and application of LEDs completely requires enterprises to find projects themselves, and it also increases the difficulty. In his view, from the perspective of the government, it is necessary to focus on solving the problems of low prices and incomplete varieties. Some representatives of the company suggested that the current energy-saving subsidies are generally released in the form of engineering. At the policy level, they may consider terminal subsidies for the supermarkets. For example, for some products that have passed certain certifications and have price and quality assurance. Subsidies can be used to ensure that the products that users buy in the mall are good products, maintain the image of LED lighting products, and guide the industry to develop in a benign direction. The lack of core patents is a big problem. Patent issues are also of concern to companies. According to the data, although the number of LED patent applications in mainland China has increased significantly, even surpassing the United States ranks second in the world, on a global scale, China's position in the LED intellectual property landscape has not been fundamentally improved. On the contrary, due to the lack of core patents, China's LED intellectual property issues are becoming a bottleneck restricting the development of the semiconductor lighting industry. Patent is a double-edged sword. If you don't respect the patent, it may hurt the technological innovation of the enterprise and the whole industry. CSA China Deputy Secretary-General Fu Qiang said that the patent issue is indeed a bottleneck, but there are more mature experiences in the world. He said that one of the models is that the patent operating company collects relevant patents from different patent holders, packages the collected patents, and then communicates with the patented technology companies to provide services in the form of patent packages. In this process, the patent operating company will pay the patent holder fee, and will also charge the patent use fee and distribute the income according to a certain weight. This is actually a sustainable development model worth exploring. As far as the LED industry chain is concerned, the recognition of the downstream market is even more critical. At present, everyone is most worried about whether consumers can use LED products with confidence, whether the quality is excellent, and whether the brand can be established. Standards may have imperfections, but they cannot be perfected after the standards are implemented. In this case, a better after-sales service system should be established. According to industry insiders, semiconductor lighting must do a good job in the construction of a market service system. It is necessary to establish a brand and protect the interests of consumers, so that ordinary people know the existence of a quality assurance system and use it with confidence.

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