And see how domestic LED chips survive in the game.

"For the chip factory, competition has always been international." An industry insider said in an interview that in the past two years, overseas chip companies such as the United States, South Korea, and Taiwan have accelerated their entry into the Chinese mainland market, and China’s LED extension, With the rapid growth of the number of chip companies and the expansion of production capacity, domestic chip companies are faced with the test of how to develop core technologies, stand in the market, and rise.

Today, with the rapid development of LED technology , the pace of LED to the ultimate market of general lighting is accelerating. "The general lighting market is mainly driven by the government, and the real market has not yet started." An industry insider said that many lighting manufacturers are currently Illumination with integrated low-power chips is inexpensive but has reliability issues. With the improvement of illuminating efficacy and the improvement of device reliability requirements, high-power chips will be the mainstream of the market. "However, 80% of domestic high-power chips have to rely on Taiwan and the United States."

It is undeniable that as far as 2008, the LEDs on the Olympic Stadium and the Water Cube in the world's most popular Olympic venues use imported chips. As of 2009, the Ministry of Science and Technology organized the “Ten Cities and Ten Thousands” pilot demonstration project and the national development in 2010. The DSC, the Ministry of Housing and Urban-Rural Development, and the Ministry of Transport and other three ministries jointly bid for the semiconductor lighting product application demonstration project. Under the premise of ensuring the quality of the demonstration project, the performance and reliability are highly demanded. Many successful bidders also Imported chips are conservatively chosen. “The domestic high-power chip companies have benefited less.”

One industry insider is worried that if China has been missing high-quality high-power LED chips in the future, even if the government invests ten times as much as the demonstration project, it will only earn more profit for foreign chip manufacturers in China. China's local packaging and application companies can only get a meager "hard work", China's LED industry will step into the sorrow of the DVD industry. It is understood that there are currently dozens of domestic chip manufacturers, but domestic LED chip companies have not played out due to problems in technology and equipment. CSA statistics also show that 301 units have been installed and put into operation in mainland China. It is estimated that there will be about 400 new MOCVDs in China in 2011, and the total number will reach 700 units. With the release of production capacity, it is expected that the price of white light chips will drop by 20%~30% this year, which will have a certain impact on the domestic low-end chip market.

It is understood that the current domestic major chip company Xiamen Sanan focuses on the low-power LED backlight and display market, Hangzhou Silan Mingxin, Wuhan Huacan focus LED outdoor display market, Xiamen dry photo specializes in red and yellow light chips, focus The manufacturers of high-power chips are mainly Wuhan Diyuan and Guangzhou Jingke. Faced with the strong foreign investment, the release of domestic chip capacity, the decline in prices and other pressures, how should domestic chip companies break through? "Before the luminous efficiency of the device reaches the theoretical limit, the LED industry will be a field oriented to technological innovation. Differentiation and specialization determine the development and future of the enterprise," said an industry expert.

"On the technical level, the domestic chip industry has indeed reached the research and development level of 110lm/W~120lm/W, but the enterprises that can mass-produce are a minority. The technology is not the only key to determine the success or failure of the enterprise. The enterprise must compete fiercely. Winning, the most important thing is to see its competitiveness in mass production yield, quality and cost control.” An industry expert said in an interview that China’s LED chip companies are facing development after achieving the 100lm/W target. The question is how to industrialize, scale, and maximize benefits.

At the same time, this industry expert also said that competition will be inevitable. "Competition is inevitable, and competition will be very fierce. It is important for domestic chip companies to learn how to deal with it, to protect themselves while learning from other advanced technologies, to develop core technologies, to strengthen innovation capabilities, and to improve technological content and technological level. The development of stamina, and finally stand firm and compete with foreign companies." Of course, competition also requires the macro-control and planning of the state, government, departments and even the industry to avoid waste of resources. "Government guidance, standard formulation and implementation are important measures for the orderly development of China's LED chip industry. The state can also set up an overall R&D center to guide the development of the entire industry from a global perspective."