Haitz's Law of China's LED Lighting Industry

In the LED industry, there is the “Moore's Law”-Haitz's Law in the microprocessor industry. It is named after Roland Haitz, a former technical scientist of Agilent (leading manufacturer of LED lighting), meaning that the price of LED will be the same every 10 years. 1/10, the performance is increased by 20 times.

As a new type of solid state light source lighting with light emitting diode (LED) as the light source, LED lighting has shown energy-saving effects in the field of professional lighting. Such as landscape lighting instead of neon, energy-saving 70%; for traffic lights instead of incandescent lamps, energy-saving 90%; and in the small and medium size backlight module (BLU) in place of cold cathode fluorescent lamps (CCFL), has been widely used. LED luminous efficiency is much higher than that of incandescent lamps. It exceeds fluorescent lamps and cold cathode fluorescent lamps and is entering the general lighting field that accounts for 15-20% of global electricity consumption. Under the great pressure of global health, environmental protection and energy crisis, LED lighting has been recognized as an important way for health, energy saving and environmental protection. It is expanding its application scope at a faster speed.

The output value of the domestic LED lighting industry has grown from 14 billion yuan in 2006 to 100 billion yuan in 2009. It has been growing at a rate of more than 30% for several consecutive years. It is expected to exceed 150 billion this year, and its growth rate is faster than GDP growth. With continuous and stable development, China’s LED lighting era has come under Haitz's law.

First, the uneven distribution of China's LED industry will continue to increase, and industrial integration will become inevitable.

National Development and Reform Commission statistics show that China's LED lighting chip, packaging and application of the ratio of 1:9:22, industrial layout point of view, the LED industry has been extremely uneven. With the rapid development of China's LED lighting industry, LED lighting market in 2010 compared with 2009, the market demand greatly increased, the traditional lighting companies, industrial equipment manufacturers, LED chips, LED packaging, LED display and even a large number of LED Power supply manufacturers have also entered the field of LED lighting. The research and development and production of LED lighting application products have become hot in the market, and industrial chain integration will become inevitable.

Second, LED application industry chain involved in the corporate boundary is blurred, the company's LED product line is getting longer and longer.

At present, the trend of vertical integration of China's LED lighting industry emerges suddenly (currently there is integration of capital across the industry, the industry chain from top to bottom extension integration), coupled with the advantages of domestic LED lighting is concentrated in the packaging and application side, resulting in LED application lighting company boundaries blurred, companies The category line of LED products has become longer and longer, and from the perspective of participating in market competition, China has seen that the product level of a few large-scale manufacturers is close to the international level, and product R&D is moving toward “high technology, high added value, intelligence, and modularization”.

Domestic favorable policies lead to further catalyze the domestic market

The “Opinions on the development of semiconductor lighting energy-saving industries” (hereinafter referred to as “Opinions”) jointly announced by the six departments such as the National Development and Reform Commission proposed that by 2015, the average annual output value of semiconductor lighting energy-saving industries will increase by about 30%; the capacity for independent innovation of enterprises will be significantly enhanced. Large-scale MOCVD equipment, key raw materials, and more than 70% of chips are domestically produced, with 3-5 upstream chip-scale production companies; industry concentration is significantly improved, and there are about 10 key leading companies with independent brands and large market influence. .

With the introduction of various national energy-saving emission reduction policies, energy saving and environmental protection will be implemented by the government's slogan to the market's actual performance, which is an unprecedented opportunity and challenge for domestic LED lighting companies, and will also become the domestic LED lighting industry. Upgrades and exporting companies have become an important milestone for domestic sales.

Inadequate guidance of the country's new energy strategy, "princely brand" to be broken

Semiconductor lighting technology is one of the most promising emerging high-tech fields in the 21st century. The LED industry is becoming more and more popular today. The United States, Japan, the European Union, South Korea, China Taiwan and other countries and regions have successively launched semiconductor lighting country or regional development plans, and vigorously cultivate and develop the semiconductor lighting industry in the country or region.

At the macro level, although China has successively introduced a variety of policy opinions and pilot cities to further support and guide the development of the industry, while the LED industry is booming, China’s industry has encountered industry standards and local governments have focused on helping local “princely brands”. Local protection formulas hindered.

The LED industry has always been an industry in which many investors are contending with each other. The LED industry has also become a domestic trend, and how the “princely brand” in front of the general trend has entered the National Development and Reform Commission and other 6 departments have their own brands, larger market influence The top 10 leading companies in the power industry have become difficult problems.

In 2010, the collaborative innovation of the regional semiconductor lighting industry clusters and the local breakthrough of the “Vendor brands” will become the core planning agenda for local governments and LED lighting companies.

2010 will be a turning point for China's LED lighting industry "vindictive brand" to the local break through the country, is also a sign of the advent of the industry oligarchs. At the micro level, transnational corporations represented by GE Lighting in the United States, PHILIPS in the Netherlands, and OSRAM in Germany, have established semiconductor lighting companies in cooperation with upstream semiconductor companies. They are actively creating competitive advantages and are seizing the high ground of patents in China. The development of semiconductor technology has formed a round of momentum. Therefore, how to guide the success of the "princely brands" in China, effectively integrate the advantages of the four major semiconductor lighting industry clusters in the region, and co-innovation through industrial clusters to jointly cope with the challenges of transnational corporations become the core issues of the national and local governments and entrepreneurs.