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LED aims to grow RMB 1trln industry

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2017-07-31 17:12

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China will achieve continuous breakthroughs in key semiconductor lighting technologies, and form an industry worth one trillion yuan by 2020, according to the 13th Five-Year Plan for the development of the semiconductor lighting industry issued by the National Development and Reform Commission (NDRC) and other ministries and commissions on July 30. It will also cultivate at least one LED lighting company with annual sales of over 10 billion yuan and one-two internationally renowned brands.

Industry insiders believe that the plan will effectively solve China's current problems in the development of LED. It will create a good industrial environment; in particular, encourage mergers and acquisitions to promote China's LED industry and enterprises grow larger and stronger.

Make the industry grow larger and stronger

With great support in the 12th Five-Year Plan, China has become a semiconductor lighting power. The 13th Five-Year Plan for the development of the semiconductor lighting industry came up with a new goal: making the industry grow larger and stronger. That is the overall output of the semiconductor lighting industry should reach one trillion yuan by 2020.

According to the plan by 2020, China will achieve continuous breakthroughs in key semiconductor lighting technologies, continuously improve product quality and gradually improve industry concentration to form an industry worth one trillion yuan by 2020. It will also cultivate one-two internationally renowned brands and about ten domestic well-known brands. Meanwhile, it will promote a certain sale of application of OLED lighting products to lay a foundation for China to grow a semiconductor lighting power.

Focus on key technologies

In the industry insider’s view, China ranks world first in terms of the size of the LED industry, but the industry is not strong enough and has no well-known brands. More importantly, there are obvious weakness in technologies in material and other basic fields. Therefore, the plan will help China to make achievements and catch up in the key and basic technologies of LED lighting.

Specifically, the plan proposes to study semiconductor lighting materials and devices with new concepts, new structures, new features, and develop semiconductor lighting products and integrated systems that can be applied in the field of intelligent lighting, health care and agriculture.

The plan highlights major common key technologies, such as materials and OLED. It proposed to promote the industrialization of silicon substrate LED, develop efficient luminescent material for OLED lighting use and study new OLED devices and lighting products. Data shows that sapphire substrate, silicon carbide substrate and silicon substrate are three major technical routes in the LED lighting. And China has completely intellectual property right of LED silicon substrate. The product also has higher light quality and requires lower costs.

Liu Rong, president of HC SemiTek Corporation (300323.SZ) indicated that centering on key and basic technologies, the plan will effectively solve the problems brought about by the brutal growth of the industry, enhance the industry's innovation and international competitiveness by strengthening the industry standard, brand value and intellectual property protection. 

Encourage mergers and reorganization

The plan proposes to promote industrial upgrading, encourage LED lighting enterprises to conduct mergers and reorganization among to grow bigger and stronger, and cultivate leading enterprises with international competitiveness to promote the development of industry cluster and the differentiated development of the industry.

“The plan comes out at the right time. HC SemiTek will seize the opportunity to strengthen international cooperation and research and development to grow into a leader in the international LED chip market,” Liu Rong said.

From a global perspective, large semiconductor lighting companies are continuously conducting mergers and reorganization. The industry’s concentration continues to improve. It becomes a general trend that the industry will move from the west to the east.

In addition, the plan also encourages enterprises to develop and promote intelligent lighting products that can be applied in various scenes.
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