Guan Jizhen, Vice Chairman of LED Display Branch of China Optical Optoelectronics Industry Association

At present, the LED display industry is facing good market opportunities. With the continuous improvement of the material performance of LED devices, full-color display is becoming a new growth point in the LED display industry; the large-scale events such as the 2008 Beijing Olympic Games and the 2010 Shanghai World Expo will bring more to the LED display market. Market opportunities; the development of the semiconductor lighting industry has opened up more space for the development of the LED display industry; the market for outdoor advertising, sports, transportation and performance, exhibitions, leasing, gatherings and other fields has also increased significantly. To seize these opportunities, we must objectively understand the development status of China's LED industry.

Industry development faces three major problems At present, China's LED industry development faces three major problems. First, the ability of technological innovation is insufficient, and the overall level of innovation of the industry needs to be improved. It is mainly manifested in the shortage of new products with high technology content and the backbone products leading the market development. The phenomenon of “cloning” technology and products is widespread, and the leading enterprises in the industry that can play an active role in promoting technological progress and improving the overall development level of the industry are lacking. The company's investment in research and development is seriously insufficient. Due to the lack of technological innovation, the low level of technical duplication of products leads to price wars and various irregular competition behaviors in the market.

Second, the core competitiveness of enterprises is weak. Slow technological progress in the industry, low level of product innovation, and insufficient technical content have led to a lack of core competitiveness.

The third is the misalignment of the industrial chain. The combination of upstream and downstream industries, professional collaboration and division of labor are the hallmarks of healthy development and maturity of the industry. In the LED industry, there have been many display manufacturers in the LED device packaging and LED device packaging companies in the past few years. Although it has its own reasons for the development of the enterprise, it is unreasonable from the composition of the industrial chain.

New trends change the industrial pattern Industry development trends can be analyzed from the following three points:
The first is the deepening of product technology and product diversification.

The technical basis and level of China's LED display industry should be said to be quite advanced. The main products and key technologies can be consistent with the international advanced level of the same industry, but the process level is relatively backward, in product standardization, system design and reliability. There are obvious gaps with foreign countries in terms of manufacturing processes, testing and testing methods.

The technology and performance of LED devices continue to improve, and the development of electronic technology is changing with each passing day, which brings a good foundation for the technical deepening and improvement of LED display products. At the same time, LED display has been widely used in various fields of social life. The development of semiconductor lighting industry has brought a good opportunity to the LED display industry. Therefore, the LED display market has an optimistic development prospect. Deepening the technical connotation, enriching the product system, diversifying products, and highlighting the advantages of leading products will be an important trend in the development of the LED display industry.

The second is the standardization of conventional products and the specialization of application products in specific fields.
The promotion and implementation of relevant standards will promote the standardization of LED display products. Among the conventional LED display products, standardized display devices and control systems will be more widely adopted. Integrated LED display products will occupy a major position in the industry. The specialized division of production of standardized LED display products and market technical services will be More obvious.

In the professional application field, LED display products meet the needs of professional applications, the level of specialization will continue to improve, and specialized products combined with application requirements will expand into new products and new application fields that form LED displays, such as the large-scale urban lighting project. Area LED display, LED display of stadiums, LED display in traffic field, etc.

The third is the rational division of labor within the industry and the formation of a new industrial structure.
With the development of technology and market, China's LED display industry will gradually improve and have a reasonable division of labor in the adjustment, forming a new industrial structure. In the overall industrial chain, the formation of leading enterprises in LED device production and key enterprises in the production of display products will redefine the division of labor between upstream and downstream industries, highlighting the specialized division of labor and collaboration. Perhaps in the early stage of the development of the semiconductor lighting industry, the definition of specialized division of labor and collaboration between LED device manufacturers and display product manufacturers is rather vague, but with the expansion of the market and the maturity of technology products, this definition will become increasingly clear.

In the LED display industry, the enterprise groups within the industry will be properly classified, and a technology-developing enterprise based on key control system technology research and development will be gradually formed. Product-oriented enterprises based on large-scale and standardized production will be promoted by market application. The main technical service-oriented enterprises, professional application-oriented enterprises that meet the needs of professional markets.