On December 14, 2012, Gaogong LED Conference was grandly opened at the Mission Hills Golf Club (Dongguan Club) in Shenzhen. The conference included the 2nd G20-LED Summit 2nd Meeting, the CEO Summit of the Upper, Middle and Lower reaches, 2012. High-tech Golden Globe Awards Vote and Awards Ceremony, Gaogong LED Four-Year Celebration Gala and 2012 (Lianchuang Cup) Gaogong LED-CEO Golf Invitational.
After the second closed meeting of the 2nd G20-LED Summit on the morning of December 14, the 2012 High-tech LED Conference-Upper Middle and Lowerstream CEO Summit was officially launched in the afternoon at the Mission Hills International Conference Center in Shenzhen, including the G20 Summit member companies. The CEOs of more than 300 LED companies at home and abroad have jointly discussed the LED industry development, corporate strategy, market strategy and industrial chain cooperation plan, and the scale of the lineup is unprecedented.
"The oversupply of LED products is the cause of price wars, but this reason is multi-faceted. Many enterprises are expected to oversize the LED market, swarming and blindly transforming the LED industry." Zheng Tiemin, general manager of Shandong Inspur Huaguang Co., Ltd. In the keynote speech, some entrepreneurs only focused on immediate interests. Some enterprises did not receive policy subsidies and preferential policies, and they went to expand in other places because they saw the urgency of attracting foreign investment from foreign governments.
Zheng Tiemin said that many local governments made blind decisions, made many unrealistic grand plans, and threw out attractive preferential policies, including donating land, factories and so on, which attracted many companies to invest. Some LED companies did not invest locally. Subsidies can be heavily subsidized when investing in different places. Wuhu is a good example. Finally, the wrong guidance of the media, the LED industry is too good to describe, the development speed is expected to be too high, misleading traditional enterprises into the LED industry. "LED epitaxial chips and chips account for about 70% of the industry's profits, LED packaging accounts for 10%-20%, and LED applications probably account for 10%-20%. Some media disseminate these erroneous data, leading companies to invest in upstream epitaxial chips. ."
Zheng Tiemin believes that the price war must go through a complicated process of production restriction, production suspension, special production and bankruptcy, mergers and acquisitions, integration, and the remaining enterprises will gradually move toward the normal development path. As the performance of the products is further improved, the quality is further stabilized. The price of the product will tend to be reasonable.
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