Dismantling reorganization of Shenzhen LED industry world dream

A "plan" that looked so good for the LED's future was abruptly abolished. The "repeated order" came out, leaving many people in the industry with the conjecture that the industry had been abandoned by the Shenzhen government, and even worse, the "Sales of the LED industry in Shenzhen has touched the ceiling".

From the Environment and Resources Commission announced the implementation of China's green lighting energy-saving reconstruction demonstration project, and then to the "Twelfth Five-Year Plan" of the national basic public service system, to study and determine the promotion of energy-saving appliances and other product consumption policy; formally released from the National Development and Reform Commission China gradually phased out The incandescent light road map, and then five steps gradually banned the import and sale of incandescent lamps. Over the past year or so, the domestic LED industry is a success policy.

However, in stark contrast to this, the Shenzhen Municipal Government announced in its official communique in March this year that it will abolish the “Notice on Printing and Distributing the Shenzhen LED Industry Development Plan (2009-2015)” of the municipal government (Shenfu [2009] No. 41). The Shenzhen Municipal Government has not yet explained the reasons for the abolition of the document.

"Abolition" came out, one stone stirred up a thousand layers of waves. For this LED "destroyed order", the attitude of the Shenzhen government's silence, so that all sectors of society have guessed that the network "LED industry has been abandoned in Shenzhen," the news is rampant. Some people in the industry are concerned that if this continues, large LED industry companies may appear as “relocated capital” as Shenzhen’s four star companies (ZTE, Huawei, China Merchants Bank and Ping An Insurance), and Shenzhen’s fear of re-entering “abandoned gates” ".

Bewildering: "Half the country" doubts "ceiling"

Shenzhen LED industry was once synonymous with China's LED. In the early 90s of last century, Shenzhen began the development of the LED industry. After a sudden surge, it has more than 1,000 companies engaged in the research, development, production, and application of semiconductor lighting technology and products.

After more than ten years of development, the total output value of the Shenzhen LED industry has reached more than 800 billion yuan, accounting for nearly half of the total in Guangdong Province. Moreover, Shenzhen is the world's largest production and supply base for solar LED lighting, the world's major production and supply base for LED backlights, and the country’s largest production and supply base for LED displays, LED packaging, and major domestic production areas for special industrial lighting. In addition to the vigorous promotion of national policies, Guangdong Province has included it as one of the three strategic emerging industries that have focused on nurturing development, and has created explosive growth rates and unparalleled global production capacity.

In addition, on the LED market research institutions are also good news, according to market research agency DIGITIMES Research estimates, in 2013 the global high-brightness LED output value will reach 11.29 billion US dollars, annual growth rate will be 15.8%, driving the industry growth momentum mainly from lighting applications, Estimates account for nearly 30% of all applications.

As we all looked forward to the future of LED, we did not publish any explanations and reasons. The Shenzhen government abruptly abolished an industrial development plan that was being implemented and gave the domestic LED industry a shot. The repealed "Plan" proposed that Shenzhen "become an important R&D and production base for LED industry throughout the country and even the world." It also set the development target of industrial scale annual output value of over RMB 130 billion by 2015.

An industry expert disclosed in an interview with reporters that this plan is the first domestic LED industry plan to be implemented, and many cities have established plans for this.

Why did the "planning" with such a promising outlook for LED abruptly be abolished? The "repeated order" came out, leaving many people in the industry with the conjecture that the industry had been abandoned by the Shenzhen government, and even worse, the "Sales of the LED industry in Shenzhen has touched the ceiling".

Public opinion "Hey" volts: "Where's the decree"?

Has been hailed as the LED industry has created the rise of the myth of the "Shenzhen treasure", why suddenly abrogated LED planning? In these years, what contribution did the Shenzhen government make to the LED industry? How are the policies implemented? Are Shenzhen companies really benefiting from it, and are policy plans effective? After the plan was abolished, these problems immediately caused an uproar.

In a survey, the reporter found that on March 7, 2009, the Shenzhen Municipal People's Government issued "LED Industry Development Plan (2009-2015)" (hereinafter referred to as "Planning") to the people's governments of all districts and directly subordinated units of the municipal government. "Planning" pointed out that "based on LED technology semiconductor lighting, with high efficiency, energy saving, environmental protection, long life, easy maintenance and other characteristics, will give birth to a new light source revolution." And as "LED industry four major areas" of Shenzhen, It should actively promote the development of the LED industry.

In terms of development goals, the "Plan" requires that by 2010, the annual output value of the LED industry in Shenzhen will reach 28 billion yuan or more, and more than 5 influential companies with an output value exceeding 500 million yuan will be nurtured and developed; by 2015, the scale of the industry will have to be With an annual output value of over 130 billion yuan, more than one company with output value exceeding 10 billion yuan, 2-3 companies with output value exceeding 5 billion yuan and 10 or more with output value exceeding 1 billion yuan will be nurtured and developed. "Planning" is also strong, and the focus of development should be on chip, packaging and other technical fields.

Although the planned goal of RMB 130 billion was indeed painstaking, the reporter found that some companies did not care about it and some did not even know about the existence of the plan.

The reporter then found in a survey of more than two dozen local LED companies in Shenzhen that the executives of these companies were also confused about the plan's abolition.

Gu Yongde, president of Maoshuo Power Technology Co., Ltd., said that the specific reasons for the abolition of the plan are not clear to him. However, Mao Shuo’s target customers are for the global market, and its business in Shenzhen accounts for a small proportion, so the plan is abolished. Master power basically has no effect. Some industry insiders have also revealed to reporters that many LED companies in Shenzhen are taking the market route. Their target customers are not many in Shenzhen. The abolition of this plan will have little impact on most LED companies in Shenzhen.

“Shenzhen’s policy is many, but there are few porridges and there are still a few companies that can really benefit. Shenzhen LED companies have developed rapidly, relying on the real competition in the market competition.” A number of LED companies Executives complained in an interview.

An industry source disclosed to reporters: “There are also many places in this industry that need government supervision and policy guidelines. For example, some companies rely on subsidies to live projects, but the technology is very scarce. Like the core parts of chips, only Reliance on imports. There are many small businesses and even R & D departments do not have direct plagiarism, and then hit the 'price war', so that the original non-standard market is even more confusing, these are urgently needed relevant functional departments to sort out and guide."

According to Chai Guangyue, director of the Department of Optoelectronics Science and Technology at Shenzhen University, Shenzhen’s LED industry is still the largest in the country, but the development rate has already fallen behind. The government is advised to pay attention. An industry scholar who did not wish to disclose his name also stated that the Guangdong Provincial Government has supported semi-conductor lighting as one of the three major new strategic industries. Shenzhen’s abolition of the plan and the tone of Guangdong Province run counter to one another and is therefore easily controversial.

“The policy of that year made the companies get swarmed. It didn’t take long before they encountered the economic downturn in Europe and the United States. At the same time, the Shenzhen government’s support for this industry was “the thunder is loud, the rain is small,” and the whole industry lost its way.” High-level lighting industry officials stated that “government development should be cautious and cautious, and that it is easy for the people to have a feeling of resistance.”

"The development plans of enterprises are generally formulated in accordance with the government's planning requirements, and try to be consistent with them. Now that 'discard orders' are made, it is easy to bring confusion to the entire industry. In particular, Shenzhen also plays a leading role in reform. Shenzhen's every move may cause a butterfly effect at home and abroad," said the general manager of an LED listed company.

Business angered: "The second photovoltaic industry" is purely misunderstood

After the "destruction order" was issued in Shenzhen, it was reported on the Internet that an official who did not wish to disclose his name stated that the implementation of the "decrease order" was a worry that "the LED industry has become the second photovoltaic industry." In response, high-level lighting companies, Maoshuo, Rishang, and other optoelectronics companies have refuted this argument and firmly stated that "LED cannot become the second photovoltaic industry."

“In the past, the once-photovoltaic industry fell from the peak to the bottom in a few short years, and the domestic first-line companies were completely in a huge loss. But the LED industry is by no means the second photovoltaic industry because the LED industry not only has The huge domestic market as a support, as well as a strong foreign market can rely on, and LED applications are very wide, more importantly, technology is still developing.” Qin Chuanjun, vice president of Power Systems Technology Co., Ltd. responded.

According to the forecast of DIGITIMES Research, the global high-brightness LED output value in 2013 will reach 11.29 billion US dollars, and the annual growth rate will be 15.8%. In China, if all the lights in our country are replaced by LEDs, the amount of electricity saved by the country in lighting is equivalent to 2.5 Three Gorges hydropower stations. If LED lighting is used in civilian applications, the bright future is certain. LED lighting will be one of the largest emerging industries in the world.

“The LED industry is the healthiest and most promising industry. The potential for the next step in the LED market is still very large. As long as there is technology content, technology stays ahead, even if the economic situation fluctuates, it will take the initiative in the market competition.” The person in charge of the lighting industry listed company said in an interview.

It seems that in the lighting market, LED dealers of regular manufacturers of products are more optimistic about the performance of the LED market, there are also gradually increasing the proportion of LED products intent; and operating small brands or even assembled product owners are relatively conservative, the LED products The future development will wait and see.

The rumor has been "abandoned" and it is expected that the New Deal will bloom.

Shenzhen LED planning from the original scene, to the abolition of today, no doubt to the global economy in the winter LED industry, bringing significant pessimism. The government's stumbling-blocks to the “repeated orders” have led to speculations in various sectors of the society. Many social networks have re-transmitted the news that the company was abandoned by the Shenzhen government. What’s more, they considered that the four major companies “relocated the capital” to Shanghai. It may cause many LED companies to leave Shenzhen.

"If Shenzhen does not want us, then we can only go." A few executives of lighting companies excitedly spit to reporters. "The abolition of this plan will have little impact on our business, because our company was originally experienced in the big waves of the global market, but if Shenzhen is indifferent to the development of the LED industry, compared with other areas of good policy, some companies may Make choices for 'relocating capital'.” A high-ranking ambassador expressed his worries.

For the concerns of enterprises, the reporter telephoned Qu Shirong, director of the Guangdong Semiconductor Lighting Industry Co-Innovation Center. Yu Shirong told reporters that although Shenzhen canceled the “planning”, Guangdong Province still listed the LED industry as one of the three emerging strategic industries for strong support. Overall, the policy environment is still good, and Shenzhen City for the LED industry. The support is always in a supportive attitude.

For the abolition of this plan, Yu Shirong said that the relevant functional departments in Shenzhen have made this decision. There are mainly three aspects of thinking. The first is the time for formulation, which is not suitable for the current status of development of the LED industry; the second is Shenzhen LED planning. Other related policies are covered; the third is that the relevant policies of the country and Guangdong Province also cover the contents of Shenzhen LED planning. In addition, Qi Shirong also stated that the abolition of an industry plan will have more or less an impact on this, and hopes that major companies can rationally view this matter, not to be misled by people who do not know the truth, but also hope that Shenzhen The functional departments can introduce an effective industry-specific policy as soon as possible, and some malicious rumors will not break.

In the interview, companies such as Rishang Optoelectronics, Maoshuo Lighting, and Bonbel stated that China’s LED industry is in a critical period of blooming flowers, fighting flowers, and accelerating development. In response to this feature, relevant functional departments in Shenzhen should strengthen macro Regulation and control will guide enterprises in the development of the local economy while doing a good job in scientific planning and orderly development, avoiding hot pursuits, repeated investment, repeated construction, repeated use of wasted funds, and waste of manpower and material resources. At the same time changing ideas, changing concepts, and scientific development, both division of labor and cooperation should become the consensus and model for the development of the LED industry. Under this premise, each company according to their own expertise, coordination of division of labor, scientific planning, scientific management, orderly competition , go in line with self-development, and then jointly promote the LED industry bigger and stronger, making Shenzhen LED industry "world dream" Nirvana reborn.