On November 30, China’s National Development and Reform Commission, along with 13 other ministries and commissions, released the "Thirteenth Five-Year Development Plan for Semiconductor Lighting Industry" (hereafter referred to as the "Plan"). This document sets an ambitious target for 2020: continuous breakthroughs in key semiconductor lighting technologies, an overall industry output value reaching trillions of yuan, and the development of at least one LED lighting company with annual sales surpassing 10 billion yuan, alongside the creation of one or two globally recognized brands.
Industry insiders believe this Plan will effectively address many challenges currently facing the LED sector in China, fostering a healthier industrial ecosystem. One particularly encouraging aspect is its emphasis on promoting mergers and acquisitions within the industry, which is expected to drive further growth and consolidation among Chinese LED firms.
A Shift from Size to Strength
With backing from the Twelfth Five-Year Plan, China has already established itself as a significant player in the semiconductor lighting industry. Now, the Thirteenth Five-Year Plan aims for a shift from being merely large in scale to becoming stronger in terms of technological prowess and market presence. By 2020, the total output value of the semiconductor lighting industry is projected to reach the trillion-yuan level.
According to the Plan, by 2020, China's semiconductor lighting core technologies should keep advancing, product quality improving, and industry concentration increasing. It anticipates the emergence of more than one LED lighting enterprise with revenues exceeding 10 billion yuan annually, while nurturing one or two globally renowned brands and approximately ten domestically prominent ones. Additionally, it seeks to expand the use of OLED lighting products to a certain extent, laying the groundwork for transitioning from a major semiconductor lighting nation to a leading force in the field.
Focus on Key Technologies
Although China leads the world in the LED industry in terms of scale, it remains weak in several critical areas. There is a notable lack of globally recognized brands, and fundamental issues persist in areas like materials science. Given these circumstances, the Plan aims to facilitate breakthroughs and catch-up in key foundational technologies for China’s LED lighting industry.
Specifically, the Plan calls for researching semiconductor lighting materials, devices, and systems featuring novel concepts, structures, and functionalities. It also emphasizes developing smart lighting, healthcare, and agricultural application-oriented semiconductor lighting products and their commercial demonstrations.
The Plan specifically targets key common technologies such as materials and OLEDs. It encourages the industrialization of silicon substrate LED key technologies, develops high-efficiency OLED lighting luminescent materials, and explores new OLED device and lighting product designs. Currently, in the LED lighting sector, there are three primary technical routes: sapphire substrate, silicon carbide substrate, and silicon substrate. Of these, the silicon substrate LED represents a uniquely Chinese intellectual property route, offering advantages in both light quality and cost efficiency.
In Liu Wei’s view—president of Huacan Optoelectronics—the focus on key foundational technologies, including strengthening industry standards, enhancing brand value, and protecting intellectual property rights, will effectively resolve many of the issues arising from the industry’s rapid expansion. This focus will boost the sector’s innovative capabilities and international competitiveness.
Encouraging Mergers and Acquisitions
The Plan advocates for industrial upgrades, urging LED lighting companies to consolidate through mergers and acquisitions, thereby achieving larger scales and stronger positions. It aims to foster leading enterprises with international competitiveness and promote regional industrial clusters and differentiated growth strategies.
“The introduction of this Plan is highly timely,†Liu Wei noted. “Huacan Optoelectronics will seize this rare opportunity to deepen international cooperation and research efforts, striving to become a leading figure in the global LED chip market.â€
From a global perspective, major semiconductor lighting companies have undergone significant mergers and acquisitions, leading to heightened industrial concentration and a shift in the industry’s geographical center of gravity toward the East.
Moreover, the Plan encourages businesses to develop and promote smart lighting products tailored to various application scenarios.
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