It is estimated that the output value of LED applied to building lighting in 2012 will double to 6. 5% from last year. $8. 4 billion. Since the World Expo, discussions on LED lamps have been endless. It is undeniable that LED lamps are expected to replace neon lights in an all-round way in the future, thus becoming the leading role in the building lighting market. As a strategic technology for the country to develop the next generation of lighting, the LED lighting market will be of great significance to the development of the new generation of information technology. However, at present, China's LED lighting market is in full swing, it is still worth exploring when it is possible to open the clouds and see the sky. At present, most Chinese enterprises are wandering in the middle and lower reaches of the industrial chain. There are only a small number of Chinese enterprises in the upper reaches of the industrial chain, and their survival is extremely difficult. Technical problems are the primary obstacle that hinders Chinese enterprises from sharing this attractive cake. Under the guidance of the national policy, local governments have borrowed the LED industry east wind to carry out local economic restructuring and industrial upgrading. Therefore, there has been a wave of local construction of large LED production bases. Due to the low technical threshold of the downstream, it naturally becomes a suitable incision to enter the LED industry. The inevitable result of such large-scale investment in the downstream industrial chain is repeated construction and waste of resources, and even excess capacity and bubble. According to the market research data of CIC consultants, there are currently six major semiconductor lighting industry bases approved by the state. In fact, most provinces currently have LED industry bases under construction and intend to apply for titles in due course. Data show that in the first half of 2009 alone, the investment and output of LED in China has exceeded 20 billion yuan, and its expansion trend continues. Such a hot situation will naturally lead to such problems. According to statistics, there are more than 500 Taiwan-funded lighting enterprises in Guangdong alone. A large number of enterprises accumulate the downstream industry chain, which results in low industrial concentration. In fact, the profits of the downstream industry chain are quite limited, accounting for only 10 to 20 of the whole industry chain. Therefore, the phenomenon of too many monks and too few porridge is particularly prominent, the intensity of competition can be imagined. Such a situation will inevitably lead to a series of chaotic situations such as disorderly competition in the market. The plate construction of China's lighting industry is becoming more and more obvious. Apart from the promotion of national strategic factors, local governments have contributed greatly. At this stage, the losses of most enterprises may push the industry back to integration and reshuffle. For enterprise investors, this is both a challenge and an opportunity. It may be a rare opportunity to highlight the tight encirclement, seize the commanding heights of the industry and build brand advantages with the help of industrial adjustment, the vicious competition of enterprises will inevitably reduce the ability of the market to consume production capacity, and may even destroy the newly established market confidence. The qualifications of enterprises are different, and the products are mixed, which seriously dampens the trust of consumers, this is quite dangerous for the development of a new industry. Once it is not recognized by the market, the development of the existing industry will stagnate and become a burden to the market. The situation is not optimistic, this is also the main factor that the sales volume of products in the market is not improving at this stage.