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Pressing the remote control, the LED lights on the roof begin to change with the different colors of the music; under the fresh light, the super-fruits and vegetables are extraordinarily bright and not easy to wither... This is the most intuitive of the 5th Wuhan Green Lighting Exhibition. Feeling, and this event brought to Wuhan, perhaps more is the thinking in the industry.
Industry trapped upstream technology
At the high-end forum held at the exhibition, there is such a point: the industry is slowly maturing, and local LED companies lacking upstream core technology may face a wide range of patent litigation.
This sentence stung the Zheng Shikai, the general manager of Hubei Xidesheng Optoelectronics Technology Co., Ltd. sitting under the stage. "For a long time, the core basic technology of LED upstream epitaxial wafer and chip market has been monopolized by industrial giants. The strength of China's LED lighting industry is in the downstream packaging and application. The upstream is controlled, and the downstream is better than the big one. Strong."
He added that, even more deadly, because there are many patent problems in the technical aspects of epitaxial wafers, chips, packages, etc., if the local LED industry can not exceed this bottleneck, it will face no small trouble in the future.
According to expert analysis, unlike the previous two generations of lighting technology, the slow start and slow development, China is almost at the same starting line with the developed countries in the LED industry, which also provides opportunities for Chinese companies to participate in global competition.
It is expected that in the near future, the LED lighting industry will present a polarized situation: either have its own core technology and then rise to the leading enterprises; or provide support to some large enterprises, and then lose their core competitiveness and then collapse or transform. So what is the situation in the case of Wuhan local enterprises?
Mid-stream and downstream brands
Domestic is not without the competitive advantage of the LED upstream sector. In the view of Dong Zhijiang, general manager of Wuhan Diyuan Optoelectronics Technology Co., Ltd., Wuhan can be regarded as a highland in the research and development of China's LED industry chips.
The senior returnee who has been engaged in research and development for many years in the United States, settled in Optics Valley in 2006, engaged in the research and development and industrialization of LED chips. The company is currently the largest LED high-power chip factory in China.
Similar to Diyuan Optoelectronics, Wuhan Huacan Optoelectronics Co., Ltd. is also exhibiting a number of self-developed epitaxial chips. With the rare chip research and development technology in China, the company has developed into the third largest domestic sales company in the same industry in just three years.
“In Wuhan, there are more than 20 LED companies, but most of them are engaged in chip R&D and production. There are few downstream application companies, and there are no middle-end packaging companies.†Dong Zhijiang said that this industrial chain has caused the development of Wuhan LED industry to have inherent problems.
Yao Tao, executive vice president of Wuhan Huaju Photoelectric Co., Ltd., believes that “although LED upstream chip technology is crucial to the whole industry, it is more likely to generate brands in the middle and lower reaches, especially downstream application companies. As the LED market matures, upstream technology and Market advantages will be smaller and smaller, and downstream brands will be more profitable."
"Obviously, if the middle and lower reaches of the LED industry in Wuhan continue to keep up, then in the future of the red LED industry, there will be no Wuhan brand." Yao Tao asserted. To this end, Huaju Optoelectronics is considering extending to the midstream area such as packaging.
The fastest 5 years terminal market outbreak
The LED development momentum is rapid. However, when will the truly affordable LED products enter the ordinary consumer family on a large scale?
Exhibitors have different answers: the person in charge of the US lighting is considered to be in the next 5-10 years; Luo Chunyan, director of Huayi Lighting Market, believes that it takes 5-8 years.
According to reports, at present, the price of an ordinary LED light source is several times or even ten times higher than that of a conventional light source, which severely limits the wide range of applications of LED lighting products.
The application of LED products is still limited to lighting projects such as landscape lighting and outdoor public lighting. In the field of indoor lighting, LED is also mainly used in large supermarkets, factories, hotels or some high-end projects, even in these areas, the proportion of LEDs is still very low.
But Yao Tao said that even in the field of indoor engineering, in the next 3-5 years, it is still the world of traditional lighting. In the field of home lighting, higher prices make these products priceless.
"The main reason is that the real LED products are expensive, and most of the low prices are shoddy." Yao Tao believes that LEDs must enter the mass indoor lighting field, and they must first put down their bodies. Only when they have high cost performance will people be willing to do so. Pay the ground.
"Through technological innovation and business model innovation, with the integration of upstream and downstream, to achieve large procurement, large logistics, mass production, can make expensive LED indoor lighting products become popular consumer goods that people are willing to buy." Yao Tao said. 
Wuhan: LED industry lacks middle and lower reaches brands
[Source: LED Engineering's "LED lighting channel" 2013 the fourth period (total of 40) reporter / Liao iron]