Bad news continues to hit the LED industry. Recently, two more LED lighting-related companies declared bankruptcy liquidation.

Zhongshun Semiconductor

On December 26, 2025, the Pingshan District People's Court of Shenzhen publicly released bankruptcy application documents. Huizhou Taiji Precision Electronics Co., Ltd. formally applied for the bankruptcy liquidation of Shenzhen Zhongshun Semiconductor Lighting Co., Ltd. (hereinafter referred to as "Zhongshun Semiconductor"), putting an end to this once-glorious "star enterprise" in LED packaging.

Founded in 2019 with a registered capital of 100 million yuan, this company positions itself in the high-end LED semiconductor packaging sector. Its core business focuses on export and OEM international contract manufacturing , with products sold to markets in Europe, the United States, India, Southeast Asia, and beyond. At its peak, it employed over 500 people, operated more than 300 automated production lines, and achieved a monthly production capacity of over 4000KK+. In 2024, it won several industry awards for its products. Just a few months before halting operations, Zhongshun Semiconductor announced that its 2024 annual sales increased by 17% Year-on-year (YoY), hitting a record high. However, just over half a year later, this seemingly robust enterprise had to press the pause button.

Looking back to July 2025, Zhongshun Semiconductor had already sounded the alarm, exposing its operational crisis in advance. It announced a two-month suspension of operations citing "temporary operational difficulties and inability to conduct business normally," without specifying a resumption date or providing details on salary payments, leaving the livelihoods of over 500 employees in limbo. Although there was much speculation from the outside world at the time, it was not yet certain that this company, with a registered capital of 100 million yuan and a peak monthly production capacity of over 4000KK+, would completely exit the stage half a year later.

Beneath the halo, the hidden worries of the capital chain had long been buried. Its subsidiary owed 37.42 million yuan in goods payments to the A-share listed company Xinyichang Technology, and Zhongshun Semiconductor, as a joint guarantor , was liable for over 38.55 million yuan in arrears and related fees , becoming the final straw that broke the company's back.

Compounded by weak global consumer electronics demand and shrinking profit margins due to intensified industry competition, this rapidly expanding enterprise ultimately could not turn the tide, leaving behind a series of unresolved issues such as employee placement and settlement of supplier debts.

Tongyuan Precision

As a supporting enterprise in the LED supply chain, Guangdong Tongyuan Precision Circuit Co., Ltd. (hereinafter referred to as "Tongyuan Precision"), also located in the Pearl River Delta supply chain, has fallen into an operational deadlock.

Recently, the Huizhou Intermediate People's Court officially accepted the bankruptcy liquidation application of Tongyuan Precision and appointed Guangdong Zhuming Law Firm as the administrator, marking the entry of this precision circuit enterprise, which has been in operation for 6 years, into bankruptcy liquidation proceedings.

Public information shows that Tongyuan Precision was established in 2019 with a registered capital of 25.15809 million yuan (paid-in capital of 14.67809 million yuan). It specializes in the production of high-density interconnect boards, high-layer PCBs, and flexible circuit boards, while also deploying SMT surface mount technology and CCS new energy components. Its products are widely used in LED LCD panels, smartphone boards, 5G communication server boards, as well as in energy storage and automotive new energy fields. Since 2021, the company has specifically established an LED Business Unit and an NED Business Unit, aiming to deepen its presence in overseas markets and the new energy vehicle electronics sector.

This enterprise, which had previously been recognized as a "Specialized, Refined, Differential, and Innovative SME" and completed Series A financing, fell into a situation of complete work stoppage by the end of 2025. As of the end of December 2025, the company had owed wages to more than 200 employees for over a year, was repeatedly listed as a dishonest person subject to enforcement, and the company and its legal representative were restricted from high-level consumption by courts in multiple regions.

The bankruptcy of Tongyuan Precision was long anticipated. Throughout 2025, the company was listed as a dishonest person subject to enforcement by the Bao'an District People's Court of Shenzhen four times, and sales contract disputes with multiple enterprises remained unresolved. In November 2025, the Huizhou Housing Provident Fund Management Center could only serve the "Verification Notice" to the company via public announcement because the "entity's whereabouts were unknown, and other service methods were impossible".

The company's loss of contact has also triggered labor disputes. According to an announcement released on June 9, 2025, by the Labor and Personnel Dispute Arbitration Committee of Huizhou Dayawan Economic and Technological Development Zone, the committee accepted the labor dispute case filed by Wu Qipeng against Tongyuan Precision. As it was unable to establish contact with Tongyuan Precision, and the company failed to participate in arbitration activities as required, a default award was issued in accordance with the law. The ruling clearly states that Tongyuan Precision must, within three days after the award takes effect, pay the applicant wages and living expenses during the leave period totaling 9,632 yuan, seniority subsidies of 2,100 yuan, and economic compensation for termination of the labor contract amounting to 22,200 yuan, for a total of 33,932 yuan.

The predicaments faced by these two companies are not isolated cases. Many small and medium-sized enterprises have fallen into "operation while out of contact," ultimately either quietly exiting the market or waiting for judicial intervention, becoming "casualties" in the industry reshuffle. Corporate exit is a concentrated manifestation of the downward pressure on the lighting industry. Looking at common issues among companies, high dependence on foreign trade, weak risk resistance, blind expansion, and lack of technological innovation are the main causes. This serves as a wake-up call for the industry: only by adhering to steady operations, optimizing business structures, and enhancing core technological competitiveness can companies gain a firm foothold during the industry reshuffle.