"Zheshang" Interview with Gao Gong LED CEO Zhang Xiaofei on the Industrial Structure

The domestic LED packaging companies are not too bad in background, or the scale is too small. Within a few years, they must experience the baptism of capital.

At 12:20 on April 22, a seminar entitled “2011 LED Illuminated China Tour” in Zhongshan, Guangdong Province, lasted for nearly three hours. The host on the stage, Zhang Xiaofei, director of the High-tech LED Industry Research Institute, is still excited. He held the microphone and said with a positive look: "Hungry can only listen to more concentration. In the afternoon, we will have industry analysis and technical discussion... There is a luncheon at noon, not to stay with you. Of course, if you leave I don't want to see you again in the future."

His mania and self-confidence come from familiarity with the industry. In the meeting space, Zhang Xiaofei accepted an exclusive interview with the reporter of Zheshang.



The LED industry competition pattern will basically form in the next three years.

"Zheshang": As an observer and witness of the LED industry, what kind of pattern will the lighting industry show in the next three years?

Zhang Xiaofei: The LED industry will definitely replace traditional lighting as the mainstream of market lighting. This is beyond doubt. Moreover, the LED industry will exceed the traditional lighting industry by more than three times, and more applications will be developed each year.

I judge that in the next three years, the heat dissipation problem of LEDs will be basically solved, the intelligent control will be widely used, and the luminous efficiency will be greatly improved. Various application products suitable for the characteristics of LED light sources will be developed and become mainstream. The existing high price and low cost performance of LED products will be gradually solved in the next three years. In addition, there will be dozens of listed companies that focus on LED product development, production and sales.

From the perspective of the entire Chinese lighting industry, at present, individual companies specializing in the production of LED products will occupy the top 10 in the industry. Most of the traditional lighting companies will begin to transform into LED lighting. They are also the main force in the increase of LED lighting companies. For example, Sunshine, Op, Buddha, NVC, Yaming and other pioneers are accelerating the transformation to LED lighting. Of course, companies with slow transitions will gradually withdraw from the mainstream market.

At present, the entire LED is in the middle and lower reaches, and China has more than 3,000 LED lighting companies. In the next three years, the number of LED lighting companies will be more than now, and the number is expected to exceed 5,000. After three years, the penetration rate of LED lighting products in China will be close to 20%.

Packaging companies first face industry reshuffle

"Zheshang": Domestic LED companies are mixed, and the homogenization situation is serious. Which stage of the industry chain do you think will be the first to be shuffled?

Zhang Xiaofei: If the industry shuffles, the packaging company bears the brunt! Do the upstream of the epitaxial chip and the downstream of the application want to do the packaging yourself. For the upstream, simply sell the package to the device, which adds value and prevents the chip technology from being plagiarized. For the downstream, only the package is made up, so that the lamps can be made. To apply for research grants from the government, you need a technical package to install the facade. The situation in Taiwan is to put the package and application together downstream (upstream is extension, midstream is chip). The LED packaging companies in the Mainland are not too bad in background, or the scale is too small. Within a few years, they must experience the baptism of capital.

LED industry leader

"Zheshang": Among the existing companies involved in LED, which ones do you think are or are on the way to the industry leader?

Zhang Xiaofei: The upstream epitaxial chips are Sanan Optoelectronics, GCL Optoelectronics, and Dehao Runda. The upstream is an industry that needs capital and technology to promote the type, and the ultra-large-scale investment provides guarantee for the company to lead the ranks.

In the middle of the package, there are Guoxing Optoelectronics, Mulinsen, Ruifeng Optoelectronics, and Yimeixinguang. These companies have very good R&D capabilities and made breakthroughs in the segmentation field.

Leading companies in downstream applications include Sunshine, Olympic Bright, Poly, and Zhou Ming. Sunshine is the representative of traditional lighting enterprises to transform LED lighting. Aoliang is the representative of high-quality LED lighting. It is the representative of developing high-quality LED lighting. Zhou Ming is the representative of excellent display enterprises.

"Zheshang": How do you view the actions of Zheshang in the LED industry?

Zhang Xiaofei: A large part of the successful dealers in the national lighting city are all Zhejiang people, including Wenzhou. They dare to do it, they are not afraid of investment failure, and they are moving fast.

Guangdong has been working on chips for a long time, but they have not done so successfully. There are several reasons for this: First, the supporting environment is poor, there is no IC semiconductor foundation such as Shanghai, Hangzhou, Wuxi; the second is that the boss who just came out to do the chip is more impetuous, can't wait for the market to be built immediately, and later feel that the economic benefits are not obvious, simply Do not do it. The chip is highly demanding for talents, and the place where the talents are really bred is still in the Yangtze River Delta. Jiangsu and Zhejiang will become the distribution center of Chinese chips in the future. Zhejiang Sunshine Lighting, Infineon Electronics, Hangke, Zhongwei, etc. are among the best in the industry.

How LED companies make good products

"Zheshang": How can Chinese lighting companies make good products?

Zhang Xiaofei: If the original is to do LED products, the team that has done traditional lighting is dug and digested; if it is traditional lighting, it will be invested in people who do LED hard work, tempted to do it together, or simply Acquired. LED lighting products not only require technical expertise, but also production management, sales channels, and brand image.

"Zheshang": Which pieces of work will this work focus on?

Zhang Xiaofei: Our work this year will be carried out in five aspects.

First, increase the input of the research strength of the high-tech LED industry research institute, and conduct more detailed research on various sub-sectors of the upper, middle and lower reaches, and release reports on driving power, materials, processing equipment, testing equipment, etc. Provide more practical and personalized market consulting services. On May 19th, Zhejiang Higher Industrial Research Institute will be established in Hangzhou and hold a two-day conference on emerging industry technology and investment.

Secondly, while conducting fundraising reports for a large number of listed companies, it conducts detailed research and analysis on LED-related listed companies, and provides real and credible analysis reports of listed companies for securities, funds and venture capital.

Third, we will continue to last year's "LED illuminates China - the national industry tour", conduct field surveys of large and medium-sized LEDs across the country to obtain corporate information, and bring comprehensive market information and successful enterprise experience to enterprises.

Fourth, we will hold a unique LED-G20 summit to bring together leaders from all segments of the industry to standardize and guide the orderly development of the industry.

Fifth, international cooperation has been concluded with the world's leading research institute, Strategy Unlimited, and the largest exhibition company, Frankfurt. We will hold an LED boutique exhibition in August to showcase the world's most advanced LED products.

"Zheshang" reporter Shen Xiaolin

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