On July 19, Gu Dewen, vice chairman of the Guangdong LED Industry Alliance and general manager of Dongguan Jingge Century Semiconductor Co., Ltd., received an internal information on the LED industry. "The industry has to be reorganized, and the shuffling has already begun." After reading the documents, he told reporters.
This industry internal data rejected by Goodwin has strengthened his judgment on the situation, and the LED industry is facing a reshuffle. On the one hand, many LED street light companies are facing losses, on the other hand, capacity continues to expand, and LEDs have reached a crossroads.
"I don't have a specific survey data here, but as far as I know, LED street light companies do have losses." Quan Jian, president of the Guangdong Lighting Association, said.
Goodwin said that according to the information he has, nearly 90% of LED streetlight companies should face difficulties. In addition to the small market, which makes business difficult, the technology is not mature. In addition, the total amount of national streetlight demonstration projects is only about 4 billion yuan, and there are nearly 1,000 enterprises engaged in LED street lamps. In the case that the commercial and civilian markets have not been fully opened, the situation of more and more porridge is becoming more and more serious.
Even if the loss, many companies still choose to support. According to the industry, last year, LED products cost $25 per thousand lumens. When the price per thousand lumens dropped to $2, the market will mature. This time will take about five years. How many companies can survive in five years? Industry experts believe that the industry has been brewing for reshuffle last year. In the reorganization, a large number of weakly competitive enterprises will be eliminated.
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