Is the listed company gambling LED follow-up or investment?

I don't know when LEDs (light-emitting diodes) are in the eye. With the increasing popularity of LED technology, a number of LED companies are rapidly emerging. LEDs are also known as "the most fashionable new energy industry in the moment."

    In the scent-sensitive capital market, it is also quickly reflected: since December last year to the beginning of this year, the LED sector led by Sanan Optoelectronics [64.79 0.73%] and Silan Micro [13.96 -1.20%] has risen against the market, LED sector The group was activated, Dehao Runda [19.03 4.27%], Tongfang shares [21.05 -0.09%], Lianchuang Optoelectronics [11.12 -0.98%] and so on before the Spring Festival have hit a new high. The rapid development of LEDs has caused most people in the industry to call for vigilance. Why do listed companies have to gamble on LEDs? What is the current status and prospects of the LED industry?

    Have a lot of money to LED

    Each LED company quickly expanded its production capacity and launched a strategy. The domestic LED industry leader Sanan Optoelectronics to expand the production capacity of Silan Micro to "half-way home" Dehao Runda, LED industry investment boom has almost swept the entire industry.

    At present, Sanan Optoelectronics LED is the largest, Lianchuang Optoelectronics is the veteran of LED, Lianchuang is longer than LED packaging and application, and has a complete industrial chain. Silan is slightly longer than LED chips, and Dehao Runda is a cutting-edge, entering the LED to establish a complete industrial chain. Other LED companies have also expanded.

    Sanan Optoelectronics, the largest LED manufacturer in China, announced in January this year that it would throw 12 billion yuan to build an LED base. Sanan Optoelectronics currently has 14 internationally advanced MOCVD and supporting equipment, with an annual production capacity of 450,000 epitaxial wafers and 15 billion chips.

    Not only Sanan Optoelectronics, but also global LED manufacturers are expanding. Among the A-share listed companies, Zhengtong Electronics [22.34 -1.76%], Han's Laser [12.02 -0.83%], and Changjiang Communication [17.05 0.59%] also announced their investment in LEDs in the near future.

    Has completed the construction of five LED production lines, and has formed an annual output of 400 million high-power blue LED chips (in 14mil) production capacity of Silan Micro, in January this year, the proposed additional issuance of funds not more than 600 million yuan, with Expansion of high-brightness LED chip production line projects and replenishment of working capital.

    Shi Lanwei, Secretary of the Board of Directors of Chen Lan, said: "After the estimated funds of 600 million yuan are in place, 500 million will be invested in LEDs."

    “Half-way home” Dehao Runda began tracking the LED industry in 2008. In 2009, it acquired 51% of Jianlongda and 30% of Ruituo officially entered the market. On February 1, 2010, it cooperated with the Wuhu Municipal Government to start chip projects. With 6 billion bets on LED optoelectronics industry.

    “The Wuhu project was completed in 2011. This is the first step. After the completion of the project, it is expected that the technology and scale will rank among the top three in China.” Dehao Runda’s board secretary Deng Fei said.

    On December 7 last year, Changjiang Communications cooperated with the Huangpu District People's Government of Wuhan City to invest in the construction of the largest LED lighting production base in Central China in Huanghua District. The estimated annual sales revenue is 2 billion yuan.

    He Yangyang, an analyst at Tianxiang Investment, told reporters: "In fact, LEDs have been produced long before, and their development history is relatively long. With the importance of energy conservation in recent years, the industry has gradually commercialized and gradually increased in scale. Many listed companies Invested in a lot, the current domestic Sanan Optoelectronics scale is large."

    LED lighting industry

    LED - This is called the industry of the third lighting revolution after the open flame and incandescent lamps. With the launch of semiconductor lighting engineering, the LED industry is growing faster and faster.

    In the LED market application field in 2009, LED indicators, LED displays, mobile phone keyboards and camera flashes, and LCD backlights ranked among the top four sales areas.

    It is understood that the current global LED industry has formed a three-pronged pattern of the United States, Asia and Europe. Japan and the United States are relatively leading technologies, and Europe has a comparative advantage in the field of application. The LED industry in Taiwan and South Korea has risen rapidly in recent years.

    In recent years, China's LED industry has developed faster than the global average. In the LED industry chain, the upstream substrate materials and epitaxial wafers have the highest production technology, followed by chip manufacturing. At present, the advantages of China's LED industry are mainly concentrated on the development of packaging rings with relatively low technological content. In the next five years, the development speed of domestic upstream substrates and chips will obviously exceed the downstream. At the same time, the proportion of high-brightness LEDs in China's LED production and application has gradually increased.

    "The number of companies involved in the LED upstream chip industry is increasing. However, it must be recognized that the risk of upstream investment projects is very large, the key is market and technology positioning." Zhao Lixia, Ph.D., Institute of Semiconductor Research, Chinese Academy of Sciences, said in an interview.

  Be wary of LED investment overheating

    With the sudden emergence of the LED sector, Sanan Optoelectronics, Dehao Runda and so on have gone a wave of rising prices.

According to public information, in the first half of 2009 alone, the total investment budget for LED projects in various parts of the country has exceeded 20 billion yuan.

    In response to the LED investment fever, Dehao Runda’s Dongshou Deng Fei told reporters: “With the support of the government, all localities are increasing their investment. Dehao Runda raised 1.5 billion last year. At that time, the largest domestic investment in the LED industry. LED leading companies are also increasing their investment."

    Listing financing has also become an urgent need for the development of LED enterprises, and private powers have also entered a desire to share a piece of cake. According to statistics, in 2009, private capital actively participated in the LED industry, and the scale of investment grew rapidly. The investment field involved the entire industrial chain. In recent years, venture capital has invested more than 1.5 billion yuan in domestic enterprises.

    According to expert analysis, from the current statistics of construction and planned construction projects, LED production capacity will at least overdraw the capacity and market in the next three to five years. After the completion of a large number of LED projects, China's LED industry will not be concentrated, overcapacity, market disorder and lack of talent.

    Is there any excess capacity?

    "In the short-term, there is still no excess situation, LED demand is relatively large. In 2011, the LED LCD TV industry application entered a large-scale infiltration stage. In terms of production capacity, the expansion of production received bottlenecks in equipment supply, downstream demand. More optimistic, overcapacity will not be seen in a year or two." Yuan Haoran said.

    Chen Yue told reporters: "The current market is still in a rising stage, and there will be no excess in the short term. The technology, products and strength of enterprises are the key factors for competition."

    The LED industry has a relatively long industrial chain, including upstream, midstream, downstream and applied products. The technical characteristics and capital characteristics of each field are quite different, so there is a certain imbalance in development.

"LED industry investment has been overheated, and the potential for overcapacity in the future will appear." Zhao Lixia told reporters.

    "Emerging industries are in the ascendant, and they are still in the process of release. The supply of manufacturers cannot expand, and the improvement of LED self-technology is far from enough." Experts from the Institute of Semiconductors of the Chinese Academy of Sciences said.

  20-year valid patent term expires

    LED will welcome a new wave of restructuring?

    The bottleneck of LED development now lies in price, and the technology that determines the price is the technology. At present, the core technology of LED lighting industry is mostly controlled by foreign companies.

    Experts pointed out that overall, there is a big gap between China's LED technology and foreign countries, and it is necessary to deal with a series of problems such as patent blockade. In the field of epitaxy, chip preparation and self-encapsulation technology, it is necessary to adhere to independent innovation, and there is still a gap with foreign countries. In addition, the LED lighting industry standard is not clear.

    At the same time, some experts have predicted that all the proposed LED-related patents will be started in 1990. By 2010, the effective patent period of 20 years will gradually expire, and the original industrial patent structure will be forced to adjust.

    The patents for packaging and applications in the middle and downstream of the industry are close to 50%. In terms of the extension and chip of the upstream industry, the proportion of patents is relatively small due to the late start of research and production in China.

    In order to avoid patent problems, at this stage, including Asia-Pacific, Toyota Synthetic, Cree, Philips (Philips) and other important LED manufacturers in Europe, America and Japan, began to mutually authorize the way.

    "Domestic patent barriers are significant, patents reflect the company's research and development level, and in the future, the introduction of new products in the enterprise, the industry is relatively passive, lack of competitiveness. Foreign countries Japan, the United States, the European Union form a mutual authorization of patents." Yuan Haoran told reporters.

    Of course, as a high-tech industry, LED technology is still in the process of continuous improvement. It is not ruled out that this competition pattern may be broken due to the emergence of new technologies and the expansion of new application areas.

    He Yangyang said: "The failure of patents in 2010 will help more manufacturers to enter and never set off a new round of competition."

    The LED industry still has a long way to go in terms of strict related regulations, improvement of core technology research and development capabilities, and breakthroughs in international patent barriers. (Securities Daily)

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