Domestic LED brewing upstream investment plan has even achieved breakthroughs

Yesterday, many domestic LED companies learned that Foshan Tovey, Tsinghua Tongfang and other companies have begun to plan for upstream investment, and some areas have even achieved breakthroughs.

After two years of development, the number of domestic LED lighting companies has increased dramatically, with a number of 3,000 to 4,000, and more than 50 well-known companies with a small scale.

Liang Qipeng, chairman of China Gangfeng Group, said that the domestic LED industry has now developed to the stage of “brand” awareness. Liang Qipeng’s LED brand “Towe” is leveraging the Expo to showcase the image of “quality manufacturer”.

It is worth noting that at the international lighting exhibition held in Guangzhou recently, LED companies have come out and become the biggest highlights of the whole exhibition. Midea, TCL and Foshan Lighting all hope to quickly enter the market and establish a professional lighting brand image.

Data from the China Lighting Association show that in the LED industry chain, epitaxial wafers and chips account for 70% of profits, while LED packaging and applications account for only about 30% of profits. This means that if the upstream breakthrough is not achieved, domestic companies can only get a small cup of 30% of the profits.

"If the LED chip is localized, the cost will be reduced by 30%." Liang Qipeng said that not only will civilian LED lighting enter a large-scale popularization stage, but the situation of local LED companies subject to patents in the US, Japan and Germany will also be greatly improved.

Fortunately, the “upstreaming” impulse of LED lighting investment in domestic enterprises has become more and more obvious.

Wang Lianghai, vice president of Tongfang Co., Ltd., revealed that Tongfang’s investment in the LED optoelectronics industry will reach 3 billion yuan in the next three years, mainly in the chip field, and strive to become the largest and top three chip supplier in the country.

According to the reporter, in January of this year, Sanan Optoelectronics invested 12 billion yuan to establish an LED base; Silan Micro intends to issue additional funds of no more than 600 million yuan for the expansion and supplementation of high-brightness LED chip production line projects. funds.

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