Electric shortage struck the LED industry to face challenges

On June 1, the State Grid Corporation of China predicted that “Sanhua” (North China, East China, Central China) “electricity shortage” will spread from this summer to the present, and this winter will spread to 2012 and even 2013. The phenomenon of "electricity shortage" has become increasingly serious at present, and various capitals are rushing to enter the LED industry. The LED industry may enter the peak period of corporate mergers and acquisitions. Although the electricity shortage can produce good sales for the LED market, at the same time, the severe power supply situation will affect the normal production of semiconductor manufacturers in East China.

According to industry insiders, out of a good estimate of future market prospects, investment in the LED industry continues to climb. Under the promotion of policies, the investment enthusiasm of the domestic LED industry continues unabated. With the intensification of electricity shortages, the demand for LED products in the market may be blowouts. Take Japan as an example. After the earthquake and tsunami, the demand for LED products has risen sharply. According to market estimates, under the stimulation of the power shortage, the domestic LED market will also experience rising demand.

Market data shows that in 2010, listed companies invested more than 30 billion yuan into the LED industry, and more non-listed companies are also a major investor. The market investment is nothing more than a large-scale market demand. Although there are still more or less problems in the use of LED engineering, such as low cost performance, high operation and maintenance costs, but with the role of demonstration, LED projects nationwide The construction has entered an acceleration phase, of which the transformation of road networks is the most noticeable.

Although the market prospects are good, the current competition in the LED market is also very fierce. The lack of national standards and the existence of a large number of loopholes in market supervision have caused the industry's competition to constantly deviate from the normal track, and vicious competition has flooded the market. As market competition intensifies, the decline in end market prices will inevitably reverse the decline in stimulus costs and increase technology. In a large-scale market battle, there will inevitably be a large number of companies that have been eliminated. The LED industry will thus enter a large-scale reshuffling stage.