The LED industry is currently one of the three major breakthroughs for the development of strategic emerging industries in Guangdong Province. It is also the main battlefield for the science and technology sector to focus on economic construction, promoting the close integration of technology and industry, and enhancing the main innovation and industrial competitiveness. Since last year, especially after the Guangdong Province's LED street lighting application promotion and Guangzhou on-site conference was held, the Provincial Science and Technology Department took the lead in meeting with the provincial LED lighting technology and product promotion and application joint member units and related cities, with independent innovation as the main line, with LED street lamp demonstration The project is a breakthrough, with business model innovation and method innovation as the guide, comprehensively increasing the promotion and application of LED lighting technology and products, and fully expanding the demand of the terminal market, stimulating the LED industry to make new breakthroughs and reach new heights.
Demonstration Scale Leading the Country to Help Guangdong LED Industry to Double Production Value
According to statistics, in 2010, Guangdong Province promoted the use of 200,000 LED street lights and a total length of 2,000 kilometers of demonstration roads, over-achieving the construction tasks of the “1,000 Miles†LED street lamp demonstration project. Driven by the strong demand in the terminal market, the province’s LED industry realized a total industrial output value of 85.3 billion yuan, doubled from the previous year, nearly 3,000 companies, employing 550,000 people, and stimulating employment of 2.2 million people. The output value and scale continue to increase. It ranks first in the country and has become a hot spot for investment in strategic emerging industries. A batch of over 1 billion yuan in heavyweight projects such as Huizhou Cree, BYD Lighting, and other large projects with a total investment of 6 billion yuan have been settled, indicating that the Guangdong LED industry will usher in a new round of blowouts.
Original business model to break the cost of LED street lamp demonstration project
In promoting the implementation of the "One Thousand Miles" project, Guangdong Province selected various business models such as buyer's credit, seller's credit, and "enterprise + bank + user" to conduct pilot projects. Although it has achieved certain results, it is still unable to effectively crack the bottleneck of financing difficulties for LED street lamp demonstration projects. To this end, Guangdong Science and Technology Department conducted a comparative analysis and found a short board among them. First of all, LED street lamp manufacturing enterprises are small in scale, and it is difficult for their own funds to pay for huge engineering investment. However, the loan to banks is also not meeting the lending conditions due to the high debt ratio, so the seller’s credit is difficult to operate; secondly, domestic contract energy management ( (EMC) The company is even smaller. Even if it gets the project contract, the bank thinks the project is too risky to lend. The traditional EMC or even the "EMC+Bank" model is not convinced. Third, the local government has tangled due to the limited financial resources and the interests of the department. For reasons, they are reluctant to finance or provide guarantees for LED demonstration projects, and buyer credit cannot be implemented. Through the analysis of the above-mentioned defects in the business model, the science and technology department designed a new business model of “contract energy management + supply chain management + financeâ€, that is, to select a strong supply chain management company to form a strategic partnership with EMC Corporation. On the one hand, supply chain management companies rely on their own financial resources and through investment in demonstration projects to obtain large-scale low-interest loans from banks. At the same time, supply chain management companies can effectively control product quality and engineering risks through vertical integration of production, sales, engineering, and service processes. On the other hand, EMC Corp. backed by the credit line secured by the supply chain management company, made every effort to open up the market and undertake more projects, which further enhanced the bargaining power of supply chain management companies and street lamp manufacturing companies. This kind of virtuous circle constitutes The closed chain of capital flows has greatly reduced the operating costs of the project. In order to balance the interests of all parties, the province also designed a 25%:75% fund solution. That is, the provincial and municipal finances invest 25% of the total cost of LED street lamps into fiscal funds (of which the provincial finance grants 10% of the unpaid subsidies), and the remaining 75% are financed by supply chain management companies. The program will further reduce the project's financing risk, greatly enhance the operability of the new model, and truly let the EMC model play a major role in the LED demonstration project and achieve substantial results. Once this model was launched, it was immediately welcomed by Foshan, Zhongshan, Dongguan, Zhuhai, Huizhou, and Jiangmen, etc., and signed a contract with the Provincial Department of Science and Technology to build a green lighting demonstration city. It plans to use the new business model to install 400,000 LED street lights within 2 years. .
Create Product Evaluation Benchmarking System and Establish a Rule for Screening LED Product Quality
For the current LED product quality testing methods can not keep up with technological development, lack of technical standards, product quality uneven, market competition disorderly industry problems, the provincial Science and Technology Department in the country to take the lead in promoting the application of LED product evaluation benchmarking system. By selecting indicators closely related to product quality, drawing on the detection standards and technical methods of developed countries in the field of LED, formulating a unified test method, regularly testing products that have been applied on a large scale and widely acclaimed, and obtaining product innovation level representing the industry Benchmarking index. Under the unified testing conditions, product quality is evaluated and graded by comparison with the benchmark index. On June 23, 2010, this innovative method triggered widespread attention in the industry. In order to ensure the fairness of the benchmarking system, the Provincial Department of Science and Technology organized experts to revise the benchmarking system management standards, and the Guangdong Semiconductor Light Source Industry Association will be the executing agency of the benchmarking system. At present, based on the benchmarking system, a total of 2 batches of "Guangdong Provincial Green Lighting Demonstration City Recommended Procurement Catalogue" have been issued, and 50 LED street lamp products have been recommended to replace 3 kinds of ordinary high-pressure sodium lamps for the entire province, which has become an evaluation of LED product quality and demonstration project effects. The important basis.
Integrate the province's innovative resources and new technology routes into cost-cutting ultimate tools
Give full play to the leveraging role of special financial funds, integrate innovative resources such as LED industry special funds for strategic emerging industries in the province and provincial major science and technology special funds in 2011, and focus on supporting new micro-regional laser stripping equipment and new multi-chip HVPE equipment with new technologies. Key key technologies such as high-power LED chips with metal-based vertical structures break through foreign blockades or fill domestic gaps. For example, the patented sapphire substrate laser lift technology developed by Nanhai Xurui Optoelectronics Co., Ltd. can reduce the cost of high-power LED chips by 70%. Dongguan Zhonghao Company successfully prepared gallium nitride homoepitaxial materials, shortening the chip preparation time by 4/5. Luminous brightness increased by more than 30%; Guangzhou Jingke company's first high-power flip-chip LED integrated chip based on silicon ultra-large-scale integrated circuit technology, through the reorganization of package technology route for downstream companies to reduce the cost of light sources 30% -50%. Based on core technologies, Guangzhou Jingke, Nanhai Xurui, and Dongguan Zhongye have successively put into production epitaxial chip projects with their own core technologies, which will reduce production costs from the source and provide technical support for the large-scale application of LED lighting products.
Demonstration Scale Leading the Country to Help Guangdong LED Industry to Double Production Value
According to statistics, in 2010, Guangdong Province promoted the use of 200,000 LED street lights and a total length of 2,000 kilometers of demonstration roads, over-achieving the construction tasks of the “1,000 Miles†LED street lamp demonstration project. Driven by the strong demand in the terminal market, the province’s LED industry realized a total industrial output value of 85.3 billion yuan, doubled from the previous year, nearly 3,000 companies, employing 550,000 people, and stimulating employment of 2.2 million people. The output value and scale continue to increase. It ranks first in the country and has become a hot spot for investment in strategic emerging industries. A batch of over 1 billion yuan in heavyweight projects such as Huizhou Cree, BYD Lighting, and other large projects with a total investment of 6 billion yuan have been settled, indicating that the Guangdong LED industry will usher in a new round of blowouts.
Original business model to break the cost of LED street lamp demonstration project
In promoting the implementation of the "One Thousand Miles" project, Guangdong Province selected various business models such as buyer's credit, seller's credit, and "enterprise + bank + user" to conduct pilot projects. Although it has achieved certain results, it is still unable to effectively crack the bottleneck of financing difficulties for LED street lamp demonstration projects. To this end, Guangdong Science and Technology Department conducted a comparative analysis and found a short board among them. First of all, LED street lamp manufacturing enterprises are small in scale, and it is difficult for their own funds to pay for huge engineering investment. However, the loan to banks is also not meeting the lending conditions due to the high debt ratio, so the seller’s credit is difficult to operate; secondly, domestic contract energy management ( (EMC) The company is even smaller. Even if it gets the project contract, the bank thinks the project is too risky to lend. The traditional EMC or even the "EMC+Bank" model is not convinced. Third, the local government has tangled due to the limited financial resources and the interests of the department. For reasons, they are reluctant to finance or provide guarantees for LED demonstration projects, and buyer credit cannot be implemented. Through the analysis of the above-mentioned defects in the business model, the science and technology department designed a new business model of “contract energy management + supply chain management + financeâ€, that is, to select a strong supply chain management company to form a strategic partnership with EMC Corporation. On the one hand, supply chain management companies rely on their own financial resources and through investment in demonstration projects to obtain large-scale low-interest loans from banks. At the same time, supply chain management companies can effectively control product quality and engineering risks through vertical integration of production, sales, engineering, and service processes. On the other hand, EMC Corp. backed by the credit line secured by the supply chain management company, made every effort to open up the market and undertake more projects, which further enhanced the bargaining power of supply chain management companies and street lamp manufacturing companies. This kind of virtuous circle constitutes The closed chain of capital flows has greatly reduced the operating costs of the project. In order to balance the interests of all parties, the province also designed a 25%:75% fund solution. That is, the provincial and municipal finances invest 25% of the total cost of LED street lamps into fiscal funds (of which the provincial finance grants 10% of the unpaid subsidies), and the remaining 75% are financed by supply chain management companies. The program will further reduce the project's financing risk, greatly enhance the operability of the new model, and truly let the EMC model play a major role in the LED demonstration project and achieve substantial results. Once this model was launched, it was immediately welcomed by Foshan, Zhongshan, Dongguan, Zhuhai, Huizhou, and Jiangmen, etc., and signed a contract with the Provincial Department of Science and Technology to build a green lighting demonstration city. It plans to use the new business model to install 400,000 LED street lights within 2 years. .
Create Product Evaluation Benchmarking System and Establish a Rule for Screening LED Product Quality
For the current LED product quality testing methods can not keep up with technological development, lack of technical standards, product quality uneven, market competition disorderly industry problems, the provincial Science and Technology Department in the country to take the lead in promoting the application of LED product evaluation benchmarking system. By selecting indicators closely related to product quality, drawing on the detection standards and technical methods of developed countries in the field of LED, formulating a unified test method, regularly testing products that have been applied on a large scale and widely acclaimed, and obtaining product innovation level representing the industry Benchmarking index. Under the unified testing conditions, product quality is evaluated and graded by comparison with the benchmark index. On June 23, 2010, this innovative method triggered widespread attention in the industry. In order to ensure the fairness of the benchmarking system, the Provincial Department of Science and Technology organized experts to revise the benchmarking system management standards, and the Guangdong Semiconductor Light Source Industry Association will be the executing agency of the benchmarking system. At present, based on the benchmarking system, a total of 2 batches of "Guangdong Provincial Green Lighting Demonstration City Recommended Procurement Catalogue" have been issued, and 50 LED street lamp products have been recommended to replace 3 kinds of ordinary high-pressure sodium lamps for the entire province, which has become an evaluation of LED product quality and demonstration project effects. The important basis.
Integrate the province's innovative resources and new technology routes into cost-cutting ultimate tools
Give full play to the leveraging role of special financial funds, integrate innovative resources such as LED industry special funds for strategic emerging industries in the province and provincial major science and technology special funds in 2011, and focus on supporting new micro-regional laser stripping equipment and new multi-chip HVPE equipment with new technologies. Key key technologies such as high-power LED chips with metal-based vertical structures break through foreign blockades or fill domestic gaps. For example, the patented sapphire substrate laser lift technology developed by Nanhai Xurui Optoelectronics Co., Ltd. can reduce the cost of high-power LED chips by 70%. Dongguan Zhonghao Company successfully prepared gallium nitride homoepitaxial materials, shortening the chip preparation time by 4/5. Luminous brightness increased by more than 30%; Guangzhou Jingke company's first high-power flip-chip LED integrated chip based on silicon ultra-large-scale integrated circuit technology, through the reorganization of package technology route for downstream companies to reduce the cost of light sources 30% -50%. Based on core technologies, Guangzhou Jingke, Nanhai Xurui, and Dongguan Zhongye have successively put into production epitaxial chip projects with their own core technologies, which will reduce production costs from the source and provide technical support for the large-scale application of LED lighting products.
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