The doomsday currently digging feet Wars, mainland LED lighting industry talent shortage

“LED industry in recent years has the rapid development and presents the potential, but previously, the professional talent accumulation in a national perspective is scare.” Xiamen LED industry experts analysis said, industry scarce talent is mostly owned by big business, the talent is certainly followed the strength of enterprises to go. Xiaojia company development needs a mature technical personnel. You can train themselves, either dig people from the outside. Many LED business owners are more willing to dig people from the outside directly, the poaching phenomenon between the LED Tunnel Light business which led to more and more serious.

The doomsday currently digging feet Wars, mainland LED lighting industry talent shortage

A Public calculated that, if an area of optoelectronics industry annual output value is over 10 billion yuan, then the corresponding demand for talent 20,000. Xiamen, for example, more than 5 billion yuan annual output value of the optoelectronics industry, you need high-end industry employing more than 10,000 people. “The reality is far less than this standard, especially the really skilled professionals is the most scarce.” Said one man in charge of a large photovoltaic enterprises in Xiamen.

Quit once pay up two percent

Recently, the Taiwan media released a statistical, Sanan Optoelectronic Taiwanese engineers and supervisors have over 100 employees, and the salary soared to more than four times. In the industry view, this precisely reflect the sets of  Xiamen LED industry favored the Taiwan technical personnel.

“Original LED center gays are basically gone, it is normal that wages rose to ten thousand yuan from 3,000 yuan.” He said. Not long ago, the National Taiwan University of National Development ” have a report that, at least 50 people flying to the development of the continent, of which 46% is attracted because of” salary “.

Senior technical personnel “the annual salary amount to millions of dollars are some, but most are Taiwan.” Xiaojia said, basically the people who come from Taiwan, the salary will be higher than in Taiwan, such as Taiwan 30,000 yuan a month, here at least 4 million, plus a year-end bonus and some reward Million Basic can be achieved. Executive search firm statistics, in the photovoltaic industry, each time, the professional managers quit the job, the average salary increase of up to 20% -50%. “

Foster and development LED lighting industry needs to open up new ideas

We hope that people can have more rational view towards the development of the LED industry, in order to avoid the idea who are just concerned with speed and ignore the rhythm, avoid fast and neglect stable; and hope that the development of China’s LED industry as a precondition to the industrial development of the health and avoid the “volume” instead of “power”; hope that the development of China’s LED lighting industry is not C2C (Copy to China). Therefore, it is necessary to select the appropriate policy focus, and promote the healthy and orderly development of the LED lighting industry.

Foster and development LED lighting industry needs to open up new ideas

First, to enhance the level of industrial technology and the ability to innovate, improve industrial competitiveness.

First, it is necessary to overcome the current departments dispersed, repeated investment, to strengthen the integration of resources, and to improve the level of research and development of technology. We must strengthen the resources of the top-level design and co-ordinate the arrangements, focusing on the integration of resources, optimizing the allocation of industry resources. Relying on the initiative of the key areas to set up a joint innovation center, further innovation and resource aggregation, innovation sharing, strengthen industry standards on the basis of enhanced innovation capability of the industry as a whole, the right to speak and foreign patent negotiations.

Guide and support with the relevant technical background, leading enterprises as the main body, strengthen contains epitaxy, chip encapsulation, LED lighting industry application products, as well as supporting materials, equipment and other key links, key components and key generic technologies and major technical research products, and strive in some key areas of major technological breakthroughs. Meanwhile, tracking the developments of the third generation of wide band-gap semiconductor technology, choosing the right time, the next generation of advanced technology projects proactively arranged for the first to gain a leading edge in the new round of technological competition.

To foster and develop LED lighting industry needs to open up new ideas

Second, the emphasis on the research joint venture, to promote collaborative innovation. LED lighting involves wide technical disciplines, such as the LED chip, the substrate material, packaging, and its circuit-driven secondary optical design which covers semiconductor materials, microelectronic technology, computer-aided design, optical, electrical, thermal. The policy must be to promote the well-known institutions, research institutions, the core enterprise work closely together in order to achieve the joint research, to promote the division of labor between the various disciplines, mutual synergy of the team of professionals, and effectively overcome limited resources. To foster and develop LED lighting industry  needs to open up new ideas Third, great importance to lead the market demand for innovative. The formation of the core competencies of the developed countries and the giants can not take the short term through the purchase of the patent, acquisition of foreign companies that will be able to achieve. Meanwhile, since 2010, the global LED industry has formed a 1:4:9 proportion of the scale in the middle and lower  areas, while the downstream applications market has accounted for 52% of the profits of the industry chain, so it changed the original downstream industry chain pattern of 3:7. It shows LED Projects  that downstream applications market continues to expand, the LED industry application link in the value of space also is expected to further expand. Therefore, policies should also focus on encouraging enterprises to strengthen understanding of the market to get rid of the phenomenon of product homogeneity. Facing different regions and countries, the application requirements of different industries, to grasp various development opportunities, product cost advantage to win the market and drive enhancement of technical capabilities. Fourth, to further improve and implement the relevant policies of the first sets of “affirmative, to implement supportive policies for the key equipment. On the one hand, to strengthen the transparency of the policy, so that enterprises and users understand the full range of policy; On the other hand, to agree with the authorized user participation and interaction in innovation activities, to establish the first sets of first use of domestically sets of risk compensation mechanism. In view of the epitaxy, chip manufacturers need to experience the installation and testing of the MOCVD equipment and related peripherals, device parameters process, set MOCVD, trial production and gradually improve product yield until stable, and finally achieve production gradually increased to process design capacity.

Difficult to build LED lighting industry brand by provoking a price war

At present, there are too many LED Flood Light business in the market. Some enterprises provoke a price war. They want to eliminate opponents beach landing successfully, the more representative is Linsen. The 3W bulb in Wood of Linsen sells RMB8 to dealer, dealer sales prices in the terminal is about 14 yuan, Linsen 3W Bulb price is already very close to the market price of energy-saving lamps 5W. So it pose a threat to 5W energy saving lamps.

Difficult to build LED lighting industry brand by provoking a price war

Terminal markets around the lamp distributors snatch war intensified. Lighting rectangular send panels to pry open the the dealer door, as long as the dealer is willing to sale rectangular lighting products, they will send display panels, get ready template dealers, and do not need to stock.

Rectangular lighting rely on in this way to rapid distribute of the national market, which is currently the most market strategy that LED companies take. In the entire terminal market environment that is uncertain cases, the dealer did not dare pressure inventory, and LED lighting industry companies take such a channel layout mode, many lamps dealers are very happy to accept, but this model requires companies to have a strong logistics and distribution capabilities.

Although most of the LED lighting business layout stage of the terminal market operation is successful, such as rectangular lighting, Linsen rely on cheap Bulb to occupy the terminal market share, in order to establish a brand in the minds of consumers, and then through the LED bulb entered the public-vision, but this strategy mode is to take the old route of the traditional lighting companies.

Previously, Op ceiling lamp by defining NVC defined lamp cup and transformers, three male by defining the ballast to enter the public view. And the fluorescent tube T8 lamp is actually defined by Foshan lighting, Philips lighting companies. From the law of traditional LED lighting industry development in the next 1-2 years, there will be LED lighting companies or traditional lighting companies to define a field of LED product category LED lighting, which began to spread.

There is no doubt that the rectangular lighting, Linsen want to establish Bulb brand to enter the public view. But this method of maximizing depress their profits, and try to open up a reseller channel still need to see whether it is suitable the current business environment or not.

LED lighting industry: a structural surplus corporate cost pressure

Affected by the economic situation, enterprises themselves impact of recent domestic lighting industry can be described as troubled, NVC Lighting, Foshan lighting the battle for control of illegal disclosure successively pushed to the cusp of the industry. The reporter Learned from the Ninth China International Semiconductor Lighting Exhibition With the rising cost of labor, raw materials and Domestic lighting industry, coupled with the past two years in particular, LED industrial structure investment capacity surplus is currently facing is not the small cost pressures, the industry as a whole is still in the winter.

LED lighting industry: a structural surplus corporate cost pressure

State Lighting R & D and Industry Alliance Secretary-General Wu Ling said that wave after wave of corporate enter into the LED lighting industry did not make money as well as the collapse is not surprising in recent years, this industry had excess investment, structural overcapacity starting in 2010 . The industry is in the winter, and expected will be warmer in 2013 .

Li Xinghua,director of the Science and Technology Department of Guangdong Province said, Huizhou, Guangdong Province, Dongguan, Jiangmen, Nanhai Zengcheng ect five provincial-level LED lighting industry base a total investment of over 50 billion yuan. thereinto Huizhou Cree, Lei Technology in crystal LED chip, Guangzhou Zengcheng LED Grow Lights epitaxial silicon projects a number of heavyweight industrial investment projects the total investment of over 20 billion yuan.

He also pointed out that the industry is still facing confusion in the market, LED does not have its own brand, public praise not good, consumers recognition was low degree.

“Only a strict control of product quality, promoting business model innovation efforts to pull the consumer market, vigorously enhance industrial concentration, technological innovation and regional brands of degrees in order to achieve rapid development of the LED industry. Li Xinghua of 2011 scale of Guangdong LED industry output value reached 151.5 billion yuan, is expected this year, the output value will exceed 200 billion yuan.

An international training institutions and companies in the LED lighting industry official said some countries as a 40-watt incandescent LED lamp prices have alternatives to the limits lower than $ 10.00, on the one hand to promote LED lighting markets growth, but on the other hand, to the enterprise problem is how to reduce the cost of LED manufacturing.

Forced promotion of LED lighting industry will spoil it by excessive enthusiasm

After the draft “the promotion and popularization of LED lighting applications in Guangdong Province” released by the Guangdong Government, many local governments (like Dongguan, Shenzhen, Taishan, Shantou, Zhongshan, ect.) in Guangdong Province put forward their developing plan for LED lighting industry successfully. In addition, Hubei, Tianjin, Zhejiang, Hebei also promoted similar government-support policies in this area. The launch of these support policies was treated as a boost of domestic LED lighting industry. However, after a period of applauses and cheers, some people started to doubt the feasibility of such forced promotion.

 

Forced promotion of LED lighting industry will spoil it by excessive enthusiasm

 

Regional replacing technology is not mature, plus LED lighting industry is still in the early stage, lacking of core technologies and standards. It is hard to avoid suspicions of the feasibility of government support policies. What is more critical, the producing of LED products needs a lot of non-ferrous metal resources, which is actually violate the energy-saving, low-carbon, environmental protection concept. Abiding by the law, ignore the critical lighting efficiency, rely on relationships, have become unspoken rules of domestic lighting industry. If this phenomenon is rectified as soon as possible, the economy will suffer even greater losses.

 

Whether LED lighting business should be promoted forcedly? About this issue, people have different opinions. As the fourth generation lighting source, LED has obvious advantages: low-carbon and energy-saving. Clearly, LED will take place of other traditional lamps in the future.

 

Firstly, LED lighting applications can reduce the power consumption and consequently reduce the carbon dioxide emissions. Secondly, LED has very limited influences on environment, nearly zero pollution. It is understand that the popularization of LED Panel Light products is significant for the sustainable development of our country. In accordance with the current situation, the popularity of LED lighting products is still very low. Due to their over-expensive selling prices, they are hardly accepted by common users. Thus promoting is necessary.

 

LED is bound to replace traditional lamps, plus the promotion is also necessary. Does all these mean force promotions necessary? The answer is no. The popularization of LED should not only take into account of the trend of development, but also follow the law of development. Presently, a large number of domestic LED companies still in the immature stage, forced promotion of LED products will spoil them.

 

Five major critical points of the LED lighting industry

Local protectionism in support policies:

LED has been developed more than 20 years in China. Each year, the China Government (related departments or sectors) would launch a series of LED-related support policies and projects. Also many local governments will introduce policies to nurture local LED lighting companies, giving priority to the local LED manufactures in large municipal landscape lighting projects and traffic lighting projects. Thus most of LED Panel Light companies paid most of their attentions on participation in biddings/tenders of government projects. Besides, domestic LED lighting industry has no unified standards for LED electronic and optical parameters. Different regions have their own standards. It is very hard for LED companies to exploit markets in other regions, blocking the development of the LED lighting industry.

 

Each year, the China Government (related departments or sectors) would launch a series of LED-related support policies and projects.

 

Lacking of brand awareness;

There are a large number of LED makers. Most of them lack of independent brand, which disordered the market. Different products from different companies have quite different qualities. Unauthorized patent using and infringement happened frequently.

 

Civilian LED lighting applications needs the government support urgently;

Normally, LED lighting fixtures (like LED bulbs, LED flood lights) are more expensive than other traditional lighting products. The expensive upfront investment shakes the resolve of governments to support civilian LED lighting applications. So that the promotion of indoor (residential) LED lighting fixtures is much slower than other western countries. Currently, most of lighting associations (from different provinces and regions) are positively in response to the government support. But the more than 80% are municipal landscape lighting projects and traffic lighting projects, much less LED lighting products were used in civilian applications.

 

Bottlenecks of technology and equipment;

In the aspect of LED substrate technology and wafer production equipment, domestic LED lighting industry is obviously in a bottleneck stage. Most of independent innovations and patens are concentrated in the package area. Some critical core technologies, like white-ray LED, the heat dissipation of high-powered LED lighting fixtures, durable and efficient phosphor technology, are unfortunately controlled by larger foreign companies, mainly from Europe, North America and Japan. Domestic LED products still lag behind the international level in many respects: luminous efficiency, antistatic ability, anti-leakage ability and quality control.

 

Lacking of pricing power;

The majority of domestic LED companies are relatively small. The scattered and limited resources hindered the development of the LED lighting industry. Also relying on importation in the upstream LED chip area made domestic LED companies lose the pricing power.

LED lighting industry has experienced a decade of hard struggle

The total output of LED products in 2003 is about 20 billion. After ten years development, there are nearly 100 manufacturers for LED epitaxial technologies and LED chip technologies in China. The annual production output of LED products in 2011 is around 156 billion yuan, 6.5 billion yuan is from LED epitaxial industry and LED chip industry.

 

10 years ago, LED lighting industry narrowly avoided the tragedy of marginalization.

 

10 years ago, LED lighting industry narrowly avoided the tragedy of marginalization. Replying on the emergence of Blue-ray, breakthroughs of high-powered technologies and great supports from the government, LED industry ushered in the spring. Currently, LED-related business has become of the most promising industries in China, an important part of information technology and energy-saving strategy. After 10 years of development, China’s LED lighting industry rapidly grew. Technological innovation capabilities continued to improve. The field of application gradually expanded. The entire industry chain has begun to take shape and still running forward at an amazing speed.

 

Domestic LED industry started in the 1970s, but the real development happened in the past 10 years. In 2003, the Ministry of Science and Technology, the Ministry of Information Industry, the Ministry of Education, the Ministry of Construction jointly organized the implementation of the National Semiconductor Lighting Project. Followed by the National Development and Reform Commission and the Ministry of Finance, who increased the investment in LED industry and application. With great supports of the government, the LED industry in China has made rapid progress, the scale of which has maintained a growth rate of about 30%. In 2011, the annual output value of LED products was 150 billion yuan.

 

The technical level also significantly improved with the rapid growth in the industrial scale. The luminous efficiency has been improved from 85lm/W in 2003 to current 110-140lm/W. The gap with the international technical level is narrowing. The packaging technology is heading to flip / integrated direction, much close to the international advanced level. A number of large LED enterprises successfully developed organic  LED Panel Light sources, sapphire substrates and MOCVD models. Our silicon (silicon substrate) LED technology and industry has achieved a breakthrough. Nanchang University National LED Engineering Technology Research Center has successfully produce silicon substrates Blue-ray LED devices which could realize an electro-optic conversion of 50%-55%.

Avoid over-reliance on the government to promote led lighting industry

With the increasingly high demands of energy saving and environmental protection, as well as the start of semiconductor lighting engineering Ten thousand ten cities projects, China has basically identified as the main direction of LED outdoor lighting. Among them, LED street gains a lot of attention by the government as an important entry point for promoting lighting applications market. LED chip and packaging technology continues to progress, we can easily find many elevators, buses, aircraft cabin, restaurant entrance, even including the 2009 National Day military parade, in many star concert, taking the led lighting industry as a role to protagonist Guangyao Quartet. The application of these iconic milestone event, gives more prominence to the significant increase in the trend of white LED applications in China. Coupled with the issues of environmental protection and energy conservation under global attention, including North America, Australia, Japan and Taiwan are the development of energy-saving and carbon reduction regulations and lighting standards will contribute to the development of LED lighting applications market. This also means that the LED lights will immediately become innovative technology to dominate the field of road lighting, therefore, the people regard 2009 as the development of China’s LED Street Light golden year.

Avoid over-reliance on the government to promote led lighting industry

Avoid over-reliance on the Government to promote

The street light is a public works in led lighting industry, government investment is the key elements driving market development. If there is no value added to a product or social benefits, just with any government investment to form a sound market alone, it is very difficult, that is that say the government in overnight can let the market surge. And it is also likely to disappear with overnight, especially in China, where there is a high country of such a policy execution, greater market uncertainties.

China’s relevant government tender and plan put forward in succession. They make the majority of manufacturers more optimistic in the domestic LED street lamp and led tunnel light market size estimation. But in fact, a lot of construction bid or government, implementation of the scale and scale are obvious drop, plus local interest disputes, the manufacturers, whether can obtain the expected market interest or not remains to be seen. We should not be overly optimistic, and also over-reliance.

LED lighting industry has entered into the “crazy times”?

The 2008 Beijing Olympic Games completely fueled LED products. The site of the “magic picture” on the opening ceremony attracted the attention of the world, bringing them the magic charm from LED lighting technology.

 

The 2008 Beijing Olympic Games completely fueled LED products. The site of the “magic picture” on the opening ceremony attracted the attention of the world, bringing them the magic charm from LED lighting technology.

 

At present, more than half of the core technologies and patents in the LED lighting industry are concentrated in the United States, the Europe and other developed countries. Our country was lacking of technologies and patents in the field of LED and also a unified standard. Besides, the price war, the quality variation, the vicious competitions from low-power LED lighting products and the lack of high-end products made the domestic LED market fell into a poor state of development.

 

LED is a kind of device that can convert electrical energy into optical energy. As the most-watched lighting source in the world, LED lighting industry has been marked as one of the country’s seven strategic emerging industries. Tremendous opportunities attracted capital from various quarters. According to publicly available data, there are more than 8000 LED manufactures in China.

 

The past six months, there are 8 domestic LED lighting enterprises successfully listed, and six of which has listed on GEM. On the other hand, in the past year, the domestic small and medium LED companies frequently closed down. In 2011, there are 80 LED lighting companies closed down in Shenzhen, and 10% small sized LED companies went out of business in other cities and regions in Guangdong Province.

 

It is worth nothing that as the flourishing domestic LED lighting market, more and more foreign enterprises shifted their attentions to China. Especially in recent years, the number of patent applications in the LED field increased significantly. In addition, from the point of view of industrial chain distribution, patents in the field of LED chip technologies and packaging technologies are mainly from Europe, North America and Japan.

 

Compared with other foreign companies, China’s LED patent applications were usually at a disadvantage. According to the Institute of Engineering LED industry’s survey, by the end of 2008, there were 26071 pieces of LED-related patents applications in China, most of which (more than 50%) were concentrated in LED mid-stream industries and downstream packaging industries. Only a few of them were from upstream led tunnel light chip core area.