2011 Shenzhen LED Industry Trends Summary: A New First Year for LED White Light Bead Development

We call the just-past 2010 another new first year for the development of the LED white light bead industry. The first year has just passed, so how should we open up the next first year for LED white light beads? On April 21, the 2011 Shenzhen LED Industry Trends and China LED White Light Exhibition press conference, hosted by China Electronics Corporation and the Shenzhen LED Industry Federation, was held as scheduled at the Shenzhen Convention and Exhibition Center. The conference provided a detailed introduction to the current status and vision of the development of China's LED white light industry and the Shenzhen LED industry.

The conference's technical staff provided a detailed and in-depth introduction to LED white light beads and an outlook on their prospects: LED white light beads are a brand-new technology entirely different from past lighting concepts. They use the principle of electric-field luminescence, which can directly convert electrical energy into visible light, thereby maximizing the avoidance of energy loss during the energy conversion process. Their energy-saving effect is far superior to that of current energy-saving lamps, and unlike energy-saving lamps, they do not cause mercury pollution. Moreover, their spectrum is stable and the visual perception is as soft as sunlight. Therefore, LED technology has tremendous value for development and utilization, and countries around the world are investing heavily in an effort to secure a favorable position in the future global market for LED white light beads.

According to Wang Dianfu, a leader of the Shenzhen LED Industry Federation, there are mainly three reasons why last year was called the first year of the development of the LED white light industry:

　　1. Because the LED industry developed at a remarkable pace last year, it is estimated that the average global growth rate of the LED industry was about 50% last year, with China performing particularly impressively. The scale of China's LED industry reached 125.6 billion yuan, of which Shenzhen local LED enterprises' sales revenue exceeded 40 billion, accounting for one-third of the country and more than 60% of the entire Guangdong Province.

　　2. In the past, the advantages of Chinese LED enterprises in the LED industry chain were mainly concentrated in the midstream LED white-light packaging and downstream applications. However, last year Chinese enterprises made great efforts in the upstream LED epitaxial wafers, introducing 500-600 MOCVD devices in one go, equivalent to the total introduced by Taiwanese enterprises over the previous 15 years, and equivalent to the total global introduction in 2008.

　　3. Last year was a year of accelerated layout after the State Council announced the strategic emerging industries development plan in 2009. The government has given strong support to the LED industry. And Shenzhen has effectively seized this opportunity to develop our LED white-light bead industry!

　　Regarding the development vision of the LED industry, Wang Dianfu pointed out that, in addition to traditional application fields such as display screens, the automotive industry, electronic products, and indoor and outdoor lighting, LEDs still have many application areas to be developed, and the current applications are far from sufficient. Taking LED white-light lighting as an example, the penetration rate of LED lighting in China in 2009 was less than 1%, such as the 400,000 street lamps in Shenzhen, of which less than 10,000 use LED lighting, which has great application potential. In the past, more than 80% of China's LED white-light bead products for indoor lighting and display were exported abroad. In the future, Chinese LED enterprises need to internationalize the domestic market and work hard to cultivate the domestic market. In the next 5 years, with the strong support of the "12th Five-Year Plan," the annual compound growth rate of China's LED industry will reach 42%, and the output value is expected to reach 500 billion yuan by 2015, quadrupling from 2010. At the level of technology research and development, in order to make up for the shortcomings of Chinese LED enterprises in R&D, China will introduce 1,446 MOCVD devices in the next five years, which will require at least 100 leading talents, but the current talent reserve in LED in China is still worrying.

　　Regarding how the Shenzhen Municipal Government will support the development of the Shenzhen LED white-light bead industry in the future, Pan Weiqi, Deputy Director of the Shenzhen Municipal Science, Industry, Trade and Information Commission, said that Shenzhen has become the largest production base for domestic LED white-light products, with a leading technical level nationwide. To support the development of the LED white-light bead industry, the Shenzhen Municipal Government will provide strong support in terms of construction land, technology research and development, and the formulation of technical standards in the future. In addition, the Shenzhen Municipal Government will also designate April of each year as the Shenzhen LED Publicity Month, through this event to enable citizens to have a deeper understanding and awareness of LED white-light bead products and all LED packaging products. To lay a solid foundation for the next new year of LED white-light beads in Shenzhen and even the whole country!