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LED display industry overcapacity is imperative to hinder the reform

Date:2016-3-25

In recent years, LED display industry strong momentum of development, has become the LED industry in the second major segments of the LED lighting.
According to the statistical data shows, in 2014, the global LED display (including display and other backlight products) market size has reached $96 billion, according to the forecast, a period of time in the future the global LED display market demand will remain rapid growth, over the next five years, the average annual growth rate of more than 20%, is expected by 2020, the global LED display market size will reach $300 billion. At the same time, on the supply side of the global LED display market, China is the most important manufacturing base, 2014, only Guangdong Province LED screen display and other backlight products exports reached the 144.33 billion yuan, an increase of 30.58%.
See these data may many people also prospects for the LED display screen is excellent and complacent, as everyone knows, overcapacity has become in LED display industry is a major obstacle, however, lead to the reasons for the LED display screen overcapacity is what?
Fake and inferior low price promotion
Good things are easy to attract people to rush on like a swarm of hornets. LED display is a national advocate of emerging industries, but most of the first to eat crab who not only did not taste the sweetness, but became a pioneer in the fight for the road.
LED display industry access threshold is very low, a lot of small scale, small workshop enterprises can easily enter. But those who want to "fishing" enterprise after entering and no in technology research and development as the guide, in the face of fierce market competition and the rising costs of raw materials brought about by the pressure, these companies hesitate to sacrifice quality cost, blindly rely on price war to compete. This blind entry and low-end competition, resulting in the entire LED display market is chaotic and disorderly, difficult to manage.
Policy favorable financial subsidies
In fact, waging a led enterprises enthusiasm, to a large extent, due to state and local governments industry to support efforts to continue to increase.
In 2009 the development and Reform Commission and other six departments jointly announced the semiconductor lighting energy conservation industry development opinions "; in the same year, the Ministry of science and Technology launched" ten city lights "semiconductor lighting application demonstration city plan. In May 2011, Beijing, Changzhou, Hefei, Qingdao, Guangzhou, Haikou, Baoji 16 city was identified as the second batch of" ten city lights "model city; in November by the national development and Reform Commission released" out incandescent roadmap; 2012 February 24 letter day laborers Department released plans for the development of the integrated circuit industry in the "Twelfth Five Year Plan" ".
Local government is also a great enthusiasm for the LED industry, invested huge sums of money in land, taxation, technology development, the introduction of talent, equipment and other aspects of the implementation of the LED industry, such as a large number of preferential policies.
In addition, the subsidy policy also attracted many people to join the LED industry, national Ministry of Finance and other ministries for LED products start 2012 financial subsidies for the promotion of project bidding work, relates to the indoor outdoor 4 kinds of LED lighting products, subsidies take indirect subsidies. According to informed sources, the proportion of subsidies is about 30% of the purchase price is expected to total amount will reach the scale of hundreds of millions, will effectively leveraging led in the lighting especially the application of bulk users lighting field.

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