LED light life Light up the PE investment community

This emerging LED lighting technology not only illuminate our lives , have begun to illuminate the PE investment community . Just a few years , various aspects of China 's LED industry packed with industry and non- industry investors , only LED lighting application side , the last two years there have nearly more than 4,000 companies. This sparkling industry , what are the investment opportunities? A few years ago the photovoltaic industry , wind energy investment boom subsided , you can give this wave of LED panel lighting fixture leave any inspiration ?

Industry revenue model : Upstream Downstream decision

Semiconductor lighting is considered one of the most promising technologies of the 21st century , and opened the third lighting revolution in human society, behind contains a huge economic benefits. Over the past decade , the global LED market size average annual growth rate of over 20% ; growth of high-brightness LED market more rapidly from 1995 to 2005 the average annual growth rate of 46% , in 2008 the market reached $ 5.1 billion , accounting for the proportion of the LED market by 2001 to more than 40% growth in 2008 of 80% , a conservative estimate of the market size in 2012 is expected to reach $ 11.4 billion .

In this bright and full value chain , the upstream companies took more than 70 % of the profits , which is a capital-intensive , high -tech , high profits link. The upper reaches of the core patented technology focused on Japan's Nichia (Nichia), American Corey (Cree), OSRAM Germany (Osram) and other overseas giants in the hands of the few , is a typical oligopolistic operations ( Schedule ) . Epitaxial wafers and chips in the U.S. and Japanese companies have a monopoly advantage.

The size of the entire LED industry , depending on the direction of technology development upstream manufacturers , production capacity. At present the main factors restricting the development of LED industry, there are two : First, techniques such as optical conversion efficiency is low , lumens are not introduced industry standard speed , light color, etc. ; Second, with respect to the application of the hot end of the market , with the core technology vendor capacity planning . The semiconductor industry, " Moore's Law" has not yet appeared in the LED industry , in 2010 , in the case of upstream production expansion mainstream manufacturers , chip prices rise, not fall , downstream manufacturers , such as rice on even more than in downtime to be expected situation.

Currently, chip development and grain , the middle of the package, upstream of downstream applications , both Chinese companies have been involved in , but the domestic chip manufacturers focused on low-power , low-end areas, including areas of low-power chips Sanan Optoelectronics , dry according to optical and other enterprises. Limited to technology , capacity and other reasons , the current domestic chip supply the domestic market accounted for less than 10% , has not yet entered the ranks of mainstream providers .

Most of the Chinese LED manufacturers , only in the field of industrial packaging applications end of the chain to compete for the remaining less than 40 % of the profits , similar to previous years, the reality of solar polysilicon industry . Currently, China has more than 4,000 middle and lower LED enterprises, which are mainly concentrated in manufacturing, materials processing , design industry is characterized by small scale of investment, industrial build fast , per unit of output is not high , belongs to the traditional processing industries, but its greatest advantage is close to the market , responsive, if seize market boom, there is likely to grow out of large enterprises. LED end market applications , especially the rapid development in recent years , LED backlight, display, light source markets have undergone exponential growth. Market demand the development of production processes , quality assurance of domestic production of LED lighting manufacturers have harvested a lot of orders this year , Foshan Lighting , NVC in to this rapid transformation , there are other sectors of large companies fought this market.

China LED industry growth , should also follow the path of the bottom . Lenovo early African technology model, it may be worth the domestic LED enterprises learn - to seize market opportunities and grow their own strength, on the basis of technology , the market has accumulated on the upstream stretch , vertical industry chain is waiting for an opportunity to .

PE investment opportunities : the technology or market

Hot market opportunities facing the LED industry , to get the attention of a large number of PE . January 2010 , open investment fund , IDG and other private capital to invest 150 million yuan to Wuhan Chan ; photoelectric lighting field application on the ground , three years attracted venture deep , Tebian risk electrician, Wanxiang Group and other organizations investment of nearly 600 million yuan , in January 2010 , Kingsun financing 20 million yuan again , eager to enter the final of funds actually many times more. PE among the GSR is more fond of the LED industry , which have invested too much time core optical , optical crystal , crystal and lighting , light and easy MCD and three other companies , which are too light to do when the core red, yellow, light epitaxial wafers and chips , mainly to do LatticePower blue, green chips, easy to do , SBC light display backlight, LED lighting package , application, crystal and lighting is mainly engaged in LED lighting , covering the industry the entire chain.

Then, in the middle and lower part of the LED industry , what kind of business worth investing in, what is the core competitiveness of enterprises ? On the whole, in application areas or sub-sectors with core technology enterprise scale advantages , it is worth focusing on. The core competitiveness of the package , the enterprise application side , should be based on quality control, integrated application of technology development capability , and not necessarily tied to whether there is a vertical extension of industrial chain , the core technology.

China's manufacturing industry is currently in transition from the previous "three to a meeting" to OEM, ODM model, this process, Japanese , Taiwanese companies have much to learn from Mainland enterprises systematically . Foxconn PC can be the world's largest outsourcing services , Japanese products become synonymous with quality , are derived from the manufacturer of the product quality and the persistent pursuit , reflected in its core competitiveness of the manufacturing processes, quality control , logistics, procurement and other aspects of integrated management ability , rather than purely technical . In contrast, China, after the 2008 Beijing Olympics, came one after another LED lamp life and overall performance will be better than expected negative news before completion , and began a buyer for its highly questionable quality , thereby affecting the purchase intention. Thus , LED integrated enterprise management capabilities, is to pay special attention to factors PE .

LED increasingly bright prospects

As the core technology, equipment subject to foreign manufacturers , the development of China 's LED industry chain subject to certain constraints . Technology, personnel , patents, foreign upstream firms dig deep for three moat. To cross the chasm , you need technology accumulation , a large investment of time and money , but also the need for policy to support the country.

From a technical principle see , LED light source LED panel lighting fixture is the future mainstream technology . Currently, LED lighting mainstream technology has matured and industrialization, quality rising unit prices continue to decline, a trend . Thus , governments have introduced policies to actively support the development of this industry . LED big country in Japan, MITI in 1998 that introduced the first phase of the "21st Century Light Plan ", through financial subsidies, tax breaks and loan incentives and other policies to stimulate the global leader in the development of LED technology . The U.S. government in 2005 launched the " next generation of lighting plan" to government funds to support research and development and the establishment of industry standards, and the implementation of tax incentives LED industry . U.S. Department of Energy in 2000-2010 cost $ 500 million to develop semiconductor lighting to replace 55% of incandescent and fluorescent lamps. The EU started in 2007 , " Rainbow Project " to promote high brightness outdoor lighting and high-density optical storage market growth , and in 2009-2012 by year five stages eliminated 100-25 watt incandescent . These policies effectively promote local LED enterprises occupy the commanding heights of global competition , companies in these countries and regions of the LED industry chain to go more than 60 % of the profits , the biggest winner in this industry ; local civilian market LED lighting is rapidly activated, its environmental energy efficiency immeasurable.

More info you can visit:http://www.lead-lighting.com/led-panel/led-panel-light-smd3030-series.htm