Within two or three years, a group of important white LED field core patents will continue to spend 20 years of patent protection period, whether it is Quanzhou enterprises or capital market investors are eager to try the LED industry. With the gradual launch of a wider range of downstream applications, the LED market will see explosive growth in the future.
Upstream epitaxial wafers and chip makers earned a profit of 70 in the entire industry chain. The midstream LED package earned about 20% of profits, while the simple application-oriented manufacturing and processing companies at the lowest end of the industry chain had only 10 profits. Lack of innovation and research and development, just to give people processing, the added value of products is very low. Huang Shuiqiao, chairman of the Quanzhou LED Industry Technology Innovation Strategic Alliance, said.
At present, Quanzhou has two or three hundred LED companies, achieving an output value of more than 5 billion yuan and lacking well-known brands. The main reason for the high price of LEDs in the past is that most of the manufacturing patents are controlled by Japanese manufacturers, and they are not willing to externally authorize them, resulting in only a handful of LED suppliers. However, the expiration date of these patents is within two or three years. Once it fails, it is believed that a large number of LED manufacturers will soon emerge in China and quickly lower the selling price.
Huang Shuiqiao believes that this is the time when some of the more powerful Quanzhou enterprises are involved in the upstream of the industrial chain to carry out core technology investment and research and development.
Yang Qingshan, chairman of Sumit Electronics (Xiamen) Co., Ltd. believes that Quanzhou enterprises, which have long been engaged in the production and sales of downstream products, have an advantage in investing in upstream technology research and development. The enterprise grasps the details of the sales of the terminal products, and carries out the research and development of the core technology of the products according to the needs of the customers, thus eliminating the risk of crossing the river by feeling the stones.
For most enterprises, it is not realistic to invest heavily in core technology research. The upstream and downstream cooperation is also an option to bring business opportunities to the end of core technology. Yang Qingshan said that there are Quanzhou enterprises in all aspects of the LED industry chain. However, due to factors such as raw material imports and technology patents, Quanzhou enterprises that have entered the industry in a large-scale and large-scale investment are still a minority. Xiamen enterprises also have their own distress: Although in the upstream of the industry chain chip technology research and development, Xiamen LED leading enterprises occupy a leading position in the domestic industry, but the downstream production of products, packaging, production strength is weak. This inverted triangle industry status makes the upstream technology and application transformation out of line, and the price of related products remains high. Yang Qing said that this brings about cooperation space. LED companies carry out industrial chain division, industry leading enterprises carry out upstream technology research and development, and small and medium-sized enterprises can expand themselves through application and packaging.
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