Quanzhou LED Enterprise Brewing Entity Alliance to develop LED industry

The National Development and Reform Commission officially issued a document that five years later, China will basically eliminate incandescent lamps. As the best substitute, the LED lighting industry is expected to quadruple within five years. With the entry of Sanan Optoelectronics, which is manufactured by upstream chips, the LED industry in Quanzhou has also begun to develop in the field of product development and application in the middle and lower reaches. At present, a group of companies is being established to grasp this development opportunity.

It is understood that there are two or three hundred LED enterprises in Quanzhou. At present, only a few enterprises are involved in civil lighting, and the rest are concentrated in government procurement, hotels, offices, and craft lamps. However, as many countries are increasingly supporting the trend of civil lighting, more and more enterprises are beginning to try to transform, and entering civilian lighting is a trend. However, the scale of the LED industry in Quanzhou is small, the degree of industrial concentration is low, it is difficult to achieve economies of scale, and progress in the introduction of funds, technology and talents is also slow. Most enterprises are still distributed in the middle and lower reaches of packaging and applications. The upstream epitaxial wafers and chips are rarely involved, and the profit margin is very low.

To solve the problem of small scale and insufficient funds, Quanzhou LED industry has established a strategic alliance of industrial technology innovation this year. However, since the alliance institution is only a loose non-economic entity organization with no independent legal person, which creates certain difficulties for the project cooperation and substantive business operations of the alliance, the alliance proposes the conception and implementation of the establishment of the industrial alliance economic entity company. In order to become a common economic platform for the member companies of the alliance to conduct business operations in the future.

According to reports, one of the most important tasks currently under way in the alliance is to promote the establishment of a corporate group. According to the plan, the enterprise group will be composed of enterprises involved in the upstream and downstream of the industrial chain, which can complement each other in production and products. In addition, the members guarantee loans to each other to solve the problem of financing difficulties. This will be of substantial help to strengthen the close cooperation within the alliance and the smooth development of innovative projects and to strive for national policy support. The ultimate goal of the enterprise group is to integrate the members' respective capital and technological advantages, and to promote the listing of the entire enterprise group in five to ten years.

After Sanan Optoelectronics settled in Anxi, Quanzhou LED industry has already had a complete industrial chain from upstream chips to downstream applications, which also provides better opportunities for the development of the industry. To seize the market for indoor lighting, it is necessary to invest heavily in research and development and to expand production scale. This is also the main problem facing most LED companies in Quanzhou. In addition to solving this problem in the form of a corporate group, the feasibility of EMC (Contracted Energy Management Model) is currently being discussed with relevant departments.

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