China LED Industry Investment Situation analysis:
 
    LED industry has a relatively long chain (including the upstream, midstream, downstream, and applications), each area of technical features and capital characteristics vary widely, from the upper to the middle and then to the downstream industry to gradually reduce barriers to entry. The upper reaches of the wafer with a typical "double high" (high-tech, high-capital) characteristics of the middle chip technology content high, relatively capital-intensive, downstream packaging, content and capital investment in technology, we should lower, while the applications of the technological content and the minimum capital investment. Read only from the investment scale, LED industry chain, each link is as follows:
LED Industry Chain estimate the scale of investment
Chain node
Product Category
The scale of investment
The upstream (epitaxial films)
GaN-based epitaxial films
More than 100 million yuan
Quaternary wafer
For more than 60 million yuan
Middle (chip)
Blue-Green Chip
More than 50 million yuan
Red and yellow chips
For more than 30 million yuan
Downstream (package)
For more than 20 million yuan
Applications
Such as flashlights, lights, lights, etc.
Hundreds of thousands or millions of
Note: The scale of investment by small and medium estimates.
LED industry chain to attract the different characteristics of different investments. From our domestic point of view, the upper and middle reaches of the extension / chip area of the capital by the powerful business concerns, these enterprises listed companies (such as Jiangxi Lianchuang long electric technology, etc.), are also capitalized private companies (such as Shenzhen Century Crystal source, Xiamen An, Dalian Road America, etc.) aimed at high-end through the cut into the upstream and middle reaches, and strive to dominate the field in the LED; but large amount of investment in this area, professional and technical personnel more scarce, the investment risk is large, has been rate of return on investment enterprises is not high. Area downstream packaging has also been the recent attention of investors, as opposed to epitaxial silicon "double high" characteristics, the investment package, the area can not only reduce the technology risk, and the scale of investment is moderate, closer to the application of the market, reducing market risk, it favored by investors, especially for power-type package is more full of hope; but in the field of high-quality silicon has not completely made of, the basic imported mainly controlled by others, it is difficult to buy high-quality products, so that power-type packaging industry has been greatly the development of resistance. Application products in the market access threshold for a minimum is to directly face the area of end markets, technology risk, investment in low and fast recovery is the small amounts of capital into the LED industry, the preferred, such as Christmas lights, lawn lamp, flashlight, light , lights and other products, such enterprises in Shenzhen, Guangzhou, Xiamen, Ningbo and other places has been formed industrial agglomeration; but the low barriers to entry in this field, the market competition becomes increasingly fierce, orders for enterprise survival and development of crucial importance, most companies to take low-cost competitive strategy, product quality and lack of basic guarantees.
MOCVD systems and packaging equipment, semiconductor lighting industry in China's development, one of the important bottlenecks, equipment, localization is not only imperative is the general trend. At present, the Chinese Academy of Sciences of Semiconductors, China Electronics Technology Group, the 48th Research Institute and the Nanchang University and other units have the support of the plan in the government began to MOCVD systems development, and have achieved initial results; China Electronics Technology Group, No. 45 Research Institute and other units have also invested to proceed after the packaging equipment (such as Die Bonder, etc.) development and industrialization.
The development of China's Taiwan LED industry is typical of the downstream cut into the pattern of downstream packaging through 20 years of accumulated experience in the field, and gradually extended to expand into the upstream / midstream epitaxial wafer / chip area. At present, Taiwan's more than about 10 manufacturers and 14 downstream packaging, the upper reaches of the wafer manufacturer. In the whole industry chain, investment increased dramatically since 2000, particularly the 2003 expansion of production capacity has reached a new height, and a number of upstream firms have extended their business into the middle, while the upstream, midstream and downstream manufacturers phenomenon of cross-shareholdings, become more evident, and this itself is an investment alliances.
In the field of LED downstream packaging, packaging business in 1975 with LED-based Lite-On Technology Corporation was established, marking the official opening of Taiwan LED area of the door. Although the Taiwan LED packaging into the early history of the area, but the early investments primarily in low-brightness LED-based general, the products, price low, so the proportion of total global output is not high. In fact, Taiwan investment in the field of high-end packaging boom began in 2000 primarily due to demand for mobile phones, resulting in SMD-type LED surge in demand, Taiwanese firms have invested into the field of SMD-type LED, making Taiwan the proportion of total global output gradually上升. But over-optimistic about the mobile phone market, the manufacturers full expansion of SMD production line (vendor capacity expansion the sharpest point of time in 2003), because of Taiwan's packaging plants in mainland China and South Korea are still the main sales market by the high impact of China's handset inventory , including 100 million optoelectronics, photovoltaic and Wang Qi Bai-hung optoelectronics and other first-tier makers failed to meet the desired objectives. On the other hand, in the automotive market segments, as certified a long time, and the relatively flat growth trends, market realities demand is still small. Can be seen, the existing cell phone backlight applications become saturated, new applications (large-size LCD backlight, automotive applications) are still unable to fast convergence, the Taiwan packaging companies to expand production capacity has come to an end, business strategy have turned to diversification and differentiation, If 100 million light OLED technology cultivated to become the second profit growth point, Formosa Epitaxy and crystal blue LED power to achieve volume production of the ITO.