Analysis of two types of abnormal enterprises in LED industry

Looking at the rapid development of an industry, the Guangdong provincial government website and local party newspapers only published a headline news about the investigation of Li Xinghua, director of the Guangdong Provincial Science and Technology Department: on July 26, the reporter learned from the Guangdong provincial commission for discipline inspection that according to the relevant person in charge of the provincial commission for discipline inspection, Li Xinghua, director of the provincial science and technology department, was suspected of serious disciplinary violations and was under investigation. Li Xinghua was once called the director of LED, which is related to Guangdong LED lighting (Semiconductor Lighting) The development of the industry is closely related. This short news has shocked the entire Guangdong LED industry. Industry insiders have also speculated how much impact the Guangdong LED industry will be affected. People's eyes once again stayed in this promising and chaotic industry. Guangdong LED has made great strides. Most LED enterprises have avoided talking about Li Xinghua's fall, and those who talk about Li Xinghua are also evasive. We are not Guangdong enterprises that are not familiar with him, he was only seen giving a report at the Guangdong International Lighting exhibition. The head of a large LED manufacturer in Sichuan told reporters. In fact, as an LED enterprise, no matter whether it is in Guangdong, it will not be unfamiliar with the name Li Xinghua. During his tenure as director of the science and technology department in Guangdong province, Li Xinghua strongly advocated the development of the LED industry, giving great support to both the use end and the production end. Indeed, in recent years, the LED industry in Guangdong province has been in the forefront of the country, with its output value and application scale ranking first in the country and its market share exceeding 70%. According to the data released by the Guangdong Provincial Science and Technology Department, in 2012, the output value of Guangdong's LED industry was 217 billion yuan, with about 4000 LED research and development and production enterprises, including 30 listed enterprises, more than 800 thousand LED street lamps and more than 2. 1 million indoor lamps have been promoted. As of 2012, LED in Guangdong province has maintained a growth rate of more than 30 for 3 consecutive years. At the same time, Guangdong plans to promote the use of LED lighting products in the whole province. According to the 'implementation plan for promoting the use of LED lighting products in Guangdong province' released on May 2012, guangdong will take the lead in the field of public lighting, I . e. roads, public places, government agencies, state-owned enterprises and institutions and other lighting engineering fields invested and constructed by finance or state-owned capital, and will fully promote the application of LED lighting products. According to the plan, the scale of Guangdong's LED industry will reach 500 billion yuan by the end of the 12th Five-Year Plan. These policies undoubtedly play a positive role in promoting the development of LED industry. In addition, during the 12th Five-Year Plan period, Guangdong province's Finance invested 4. A year. 0. 5 billion yuan to set up special funds for LED industry development. The Guangdong provincial science and technology department has the right to choose the decentralization of this fund. During Li Xinghua's administration, he gave some LED enterprises a huge amount of subsidy funds. The prevalence of abnormal development in small workshops is behind the triumph, not a healthy and sustainable industry. An industry source who did not want to be named told reporters that there are two types of abnormal enterprises in the LED industry at present, one is large enterprises that do not have core technologies, however, it has soft power, extensive contacts and government resources, and can receive subsidies or projects. A senior person in the LED industry said that Guangdong has more than 4000 LED enterprises, about 2 ~ 3 you can get subsidies, including those with soft power. In fact, the technology adopted by some large enterprises with seemingly strong financial strength has long been eliminated, but with good relations with the government or some officials, these enterprises can get high subsidies, or get large-scale municipal projects such as street lamp renovation. The source said. The other is small workshops, which earn fast money in downstream application fields with very low technical and capital thresholds by virtue of quick eyes and quick hands. As a new high-tech industry, LED is a technology-intensive and capital-intensive industry in the upstream chip production link, but there is almost no capital or technical threshold in the downstream lamp assembly field, it's just a labor-intensive industry. Therefore, a large number of small workshop enterprises have entered this field, resulting in uneven product quality and nonstandard industry. The relevant person in charge of the National Semiconductor Lighting Engineering Research and Development and Industry Alliance explained. It is understood that in the LED lighting industry, most small and medium-sized enterprises use LED lamps downstream. Due to the relatively low capital and technical requirements for terminal enterprises and the low entry threshold, the competition in this field is extremely fierce. Therefore, in the tide of LED bankruptcy, LED terminal application enterprises are mostly bankrupt.