With the loss of labor cost advantages, China's energy-saving lamps, crystal lamps and other products have gradually lost their price advantage. It is replaced by LED products with energy-saving and environmental protection features. These trend-setting new light source products have emerged in the lighting market. This new trend in the industry has given the people of Guzhen to a glimmer of dawn. As of last year, there are nearly 500 LED production and application production enterprises in Guzhen. The LED output value of this town has reached 5 billion yuan. This means that in just a few years, LED has accounted for about 1/4 of the town lighting lighting industry output value.
Among the influx of capital, there are many kinds of “real estate and logistics, and many young people start businesses. In addition, traditional lighting and lighting companies are gradually involved in this new area.†According to the disclosure, these entrepreneurs are looking at the high growth of the LED market and the future development space.
In fact, the good news of the LED industry has been revealed. Xia Zhenghao, who just graduated from South China University of Technology last year, is a young "gold digger." In June of last year, he and his master's supervisor and classmates jointly invested 1 million to establish Zhongshan Shengsheng Semiconductor Technology Co., Ltd. In just over a year, the company’s production capacity was less than 10K per day from last year. It has grown to 30K. "Before the end of this year, the company will add a third round of investment and launch a batch of fully automatic and semi-automated equipment. By that time, the production capacity will reach 100K per day."
Zhang Tianxing, who already has two logistics companies, is now also the general manager of an LED company. His company was also established last year, but this year's gross revenue is estimated to reach 25 million yuan.
Behind this performance, the market demand for the LED industry is multiplying. According to Li Gang, general manager of Changzhou-Fengda Radio and Television Technology Co., Ltd., the growth rate of LED production capacity in China last year was as high as 400% to 500%. This year, despite the industry downturn, the growth rate will not be very low. Xia Zhenghao also admitted that last year, the company's gross profit margin was between 40% and 50%. Although this year's increase rate has slowed down, it can reach about 20%. In the future, the state’s support for the LED industry will gradually increase. After the current unfavorable environment, the prospects for the LED industry will once again be magnified.
However, due to the influx of excessive capital, the domestic LED is still faced with disorderly flaws. “There is no fixed standard, and the quality of products produced by enterprises is uneven.†According to industry insiders, in the retail market, the price of marked LED products ranges from a few dozen to several hundred, while the cost of LED lamps is higher. At present, it is still difficult to be popularized. The general low-cost LED lights may be counterfeit.
However, it is not an easy task to let the LED lamps be civilian. “The domestic LED companies mostly concentrate on the lowest value-added application links in the industry chain, while there are too few companies that can be involved in the higher-profit packaging and chip links, especially the development technology of silicon and the purification of monocrystalline silicon. Most of the core technologies are in the hands of countries such as the United States, Japan, and South Korea (in the hands of Chinese companies. Chinese companies need to be involved in the LED industry, and they have no right to speak at all), said a company official.
Not only that, the hard cost of light sources is also high, "In the LED products, the country has different standards for each light source, the price is fixed, can not save or reduce, and this part of the cost of lamps and lanterns accounted for more than 1/3 of the cost "Zhang Tianxing also said that if these hard costs can be reduced, the actual demand for LED lamps can really enlarge.
Among the influx of capital, there are many kinds of “real estate and logistics, and many young people start businesses. In addition, traditional lighting and lighting companies are gradually involved in this new area.†According to the disclosure, these entrepreneurs are looking at the high growth of the LED market and the future development space.
In fact, the good news of the LED industry has been revealed. Xia Zhenghao, who just graduated from South China University of Technology last year, is a young "gold digger." In June of last year, he and his master's supervisor and classmates jointly invested 1 million to establish Zhongshan Shengsheng Semiconductor Technology Co., Ltd. In just over a year, the company’s production capacity was less than 10K per day from last year. It has grown to 30K. "Before the end of this year, the company will add a third round of investment and launch a batch of fully automatic and semi-automated equipment. By that time, the production capacity will reach 100K per day."
Zhang Tianxing, who already has two logistics companies, is now also the general manager of an LED company. His company was also established last year, but this year's gross revenue is estimated to reach 25 million yuan.
Behind this performance, the market demand for the LED industry is multiplying. According to Li Gang, general manager of Changzhou-Fengda Radio and Television Technology Co., Ltd., the growth rate of LED production capacity in China last year was as high as 400% to 500%. This year, despite the industry downturn, the growth rate will not be very low. Xia Zhenghao also admitted that last year, the company's gross profit margin was between 40% and 50%. Although this year's increase rate has slowed down, it can reach about 20%. In the future, the state’s support for the LED industry will gradually increase. After the current unfavorable environment, the prospects for the LED industry will once again be magnified.
However, due to the influx of excessive capital, the domestic LED is still faced with disorderly flaws. “There is no fixed standard, and the quality of products produced by enterprises is uneven.†According to industry insiders, in the retail market, the price of marked LED products ranges from a few dozen to several hundred, while the cost of LED lamps is higher. At present, it is still difficult to be popularized. The general low-cost LED lights may be counterfeit.
However, it is not an easy task to let the LED lamps be civilian. “The domestic LED companies mostly concentrate on the lowest value-added application links in the industry chain, while there are too few companies that can be involved in the higher-profit packaging and chip links, especially the development technology of silicon and the purification of monocrystalline silicon. Most of the core technologies are in the hands of countries such as the United States, Japan, and South Korea (in the hands of Chinese companies. Chinese companies need to be involved in the LED industry, and they have no right to speak at all), said a company official.
Not only that, the hard cost of light sources is also high, "In the LED products, the country has different standards for each light source, the price is fixed, can not save or reduce, and this part of the cost of lamps and lanterns accounted for more than 1/3 of the cost "Zhang Tianxing also said that if these hard costs can be reduced, the actual demand for LED lamps can really enlarge.
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