How to readjust its development goal and products strategic positioning after the heat development, cold encounter price cuts in 2012, how to avoid win in technology and lost at commercial, how to realize resources integration between upstream, middle and low-stream of LED industry and supporting industry is the major information LED light China confront head on. See how LED specialists and entrepreneurs’ representatives take the industry’s pulse in the meeting that had just finished in Yangzhou.

Q1: where does future LED industry go?

LED industry development speed is slower than what we expected. The price of sapphire substrate and LED chip continues decreasing since the beginning of the year with an average decrease rate of over 20% in the first 7 months. Sapphire substrate projects under construction have a total capacity of 101 million pieces per year in contrast, China recently only need 6.85 million pieces. This indicates the dilemma the industry faced. Overcapacity in upstream, the application market is now as good as we expected. A continued slide in LED products price leads to hard life for some small and medium sized enterprises. A common agreement has reached among all the entrepreneurs and specialists represented in the meeting: LED lighting is definitely represents the trend of future lighting. After a series of supporting policies and the innovation of technology and concept, LED industry will have an explosive growth mold in three to five years.

Q2: How big LED market is?

The meeting has offer a clear answer to this question. According to twelfth five year plan, LED lighting will account for over 30% of the market share and with an expected output value of 500 billion RMB. The meeting also disclosed that semiconductor lighting twelfth give year plan will debut in Sep whereupon everything will be clear.

How to explain 500 billion? Chinese LED application output value of last year is 100 billion. 500 billion refers to a four to five times increase in the next three to four years.

Q3: When does LED price return to civilian price?

A data from Chinese LED General Lighting Industry Market Research Reports indicates that LED lighting market penetration is 1% in 2011 and that rate was expected to reach 3.9% in this year. It was said that it will reach 29.5% by the year of 29.5%, accounting for 1/3 of the whole lighting market.

Moore’s Law works especial well in LED industry: if the performance can improve by 20 times in ten years than its price will drop 1/10. So the price of LED lighting fixtures will incredibly close to that of energy saving lamps.

Q4: How does technology advantage transform to industry advantage?

We should try our best to devote our view and energy to application market when we strengthening upstream technology advantages.