In recent years, with the breakthrough of technology and the expansion of applications, light-emitting diodes (LEDs) that have not been concerned by people in the past have become the high-tech developed by countries all over the world. At the same time, China has also listed LED technology as “Eleventh Five-Yearâ€. "One of the major scientific and technological research areas. Throughout the LED-based semiconductor lighting industry chain, GaN-based compound semiconductor epitaxial materials and chip processing are undoubtedly the areas with the largest capital investment, the highest technical content, the most fierce international competition, and the most risky business. If China wants to have great development in this field, it needs to carry out strategic planning in terms of scale effect and technical effect. The market competition is fierce. Since the end of the "Tenth Five-Year Plan" period, the semiconductor lighting industry has been formed in a large-scale and high-intensity manner. Five national semiconductor lighting engineering bases (Shenzhen, Xiamen, Nanchang, Shanghai and Dalian) have been formed, with nearly ten mass production extensions. Materials and chip scale enterprises (Shenzhen Fangda, Xiamen Sanan, Nanchang Lianchuang, Shanghai Lanbao and Dalian Luming, etc.). By 2005, the domestic production capacity of GaN-based epitaxial wafers had reached 35,100 pieces per month, and the actual chip output was about 240 million pieces per month, accounting for about 10% of the domestic chip consumption. In terms of scale, the production of GaN-based chips in the mainland is only equivalent to the capacity of a Taiwanese chip company in China. The mainland chip market is still dominated by Taiwanese chips. With the continuous development of white LED applications and the development of the mainland packaging industry, the market size of GaN-based chips will continue to grow at an impressive rate every year. The prospects for the epitaxial materials and chip manufacturing industry are very optimistic. At the same time, we must also see that because Taiwan's chip manufacturers still dominate the scale, technology, products and market share, the competition faced by mainland manufacturers is still very fierce, and the operating environment is very bad. In the next few years, the healthy development of LED epitaxial materials and chip manufacturing in the Mainland will depend on solving the problems of scale effect and technical effect. Pay attention to scale and technical effects On the scale effect issue, the LED industry as a relatively simple electronics industry also has the characteristics of high fixed cost in the electronics industry, especially the high cost of equipment, and the speed of equipment replacement is relatively fast. How to make the company have the ability to self-renewal as soon as possible, and continue to maintain cost competitiveness, the company must continue to expand production scale. Expanding the scale of production will not only dilute the fixed costs, but also reduce the funds through depreciation and then invest in new equipment to enhance the competitiveness of the company. Domestic manufacturers are generally small in scale. It is not easy to maintain operating gross profit. It is very difficult to rely on spontaneous accumulation and development. The capital increase or expansion of existing enterprises or business combination should be one of the keys to the healthy development of the LED industry in the future, and then have real competitiveness.
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