[High-tech LED reporter report] On December 14, 2012, the 2nd meeting of the 2nd G20-LED Summit was held in Shenzhen Mission Hills Golf Club (Dongguan Club).
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After the investment boom, price cuts, and the tide of goods, the LED chip field is quietly entering the meager profit or even the unprofitable era. As the price of LED chips continues to fall, some chip manufacturers have no profit at all. Small-scale, non-development-capable chip companies have encountered difficulties, but must rely on sales growth and technological progress to survive. 
In the middle of the package field, with the help of the capital market, the packaging capacity will be further released, and the market competition pressure will intensify. The first to be eliminated by the last is a small number of small and medium-sized packaging plants with weak technology and market capabilities.
According to data from the High-Tech LED Industry Research Institute (GLII), since the first half of 2011, there have been nearly 1800 new indoor LED lighting companies in China. Among them, nearly 1,000 new LED indoor lighting companies were added in the first half of this year. In 2012, the scale of output of China's LED indoor lighting market reached 33.5 billion yuan, a year-on-year increase of more than 80%.
At present, the current status of the LED market is like two sides of a coin. Excessive competition leads to fierce competition for the survival of the fittest, and it also brings technological advancement. The LED industry is in a period of rapid development, and the industrial scale is growing rapidly. At the same time, the LED market is not yet mature, and there are many competitors. Nowadays, it has reached a critical period of transition from traditional lighting to LED lighting. It will also be a preparation and testing period for LED lighting companies and traditional lighting companies to fight ahead.
The G-20 LED Summit will be held in a sensitive period when the industry is at a cusp, which is of great significance. The meeting reached a consensus on seeking strategic industrial chain cooperation and actively promoting the follow-up promotion of G-20 LED product specifications, indicating the optimism and confidence of member company leaders on the industry's market outlook.
Among them, in the follow-up of the G20-LED lighting product specification market, the official website of G20-LED Summit (http://g20.gg-led.com) will promptly announce the list of manufacturers and corresponding products that have passed the G20-LED certification. .
At the same time, the G20-LED certification products can be printed in the G20-LED specification certification mark by the G20-LED Summit, and the G20-LED certification certification requirements are stated in the product manual.
As the initiator of the summit, Gaogong LED will promote the G20-LED specification and certification manufacturer list in the domestic and international lighting channels and terminal retail market, and will regularly distribute the G20-LED certification product list to domestic and foreign distributors and architectural decoration. Companies, lighting design engineering units and lighting designers and other channels.
Industry reshuffle forced orderly market competition
Overcapacity in the LED industry is only a surplus of low-end products, and there is still a large market space for domestic high-end chips. In the past, the low-end inventory surplus formed by LED companies due to new plant construction, subsidy promotion, and performance demand will not continue. By integrating and reorganizing and tapping new market opportunities, enterprises can help companies to absorb excess capacity as soon as possible.
Since the beginning of this year, the price war has begun to spread to the high-end chip field, but this is precisely the difficult opportunity for domestic high-end chips to seize market share. Most upstream companies lacking capital, technology and market resources will resume orderly competition after merger and reorganization, and find a market space suitable for them.
The upstream integration and orderly competition will promote the healthy and healthy development of the market in the middle and lower reaches. The middle and lower reaches with certain strength and characteristics will also participate in this round of industrial integration. At the same time, the price trend of LED epitaxial wafers and chips will gradually become more reasonable in the future market competition, which means that the same luminous lumen value, chip unit price will further decline.
In the next three years, global LED epitaxial chip companies will undergo an integration process, and packaging companies will undergo simultaneous integration. This is a process of deconstruction and survival of the fittest. At the same time, this will lead to an increase in product quality and a reduction in cost. With the gradual release of demand in the application market, market competition will become increasingly fierce. 
