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LED industry in China since 1990, began to rise around 2000, many flocked to small and medium enterprises, investment in the LED industry, LED industry, intense competition, product prices come down gradually, and steady development in 2001, according to industry association statistics, the 2009 gross domestic The LED applications, the production value reached 14 billion yuan, of which full-color display applications, the size reached 6.5 billion yuan. Promote the enactment of the measures in 2010, with the government\\ s economic boom high of the LED industry, attracting many investors to enter, but even debt crisis and other adverse factors, most enterprises are struggling at the edge of collapse.

According to statistics, the LED industry in the first half of 2011, signed planning investment amounted to 1,184.98 billion yuan, a year-on-year increase of 26% compared to the downstream market is clearly not open. LED products rely more on local government municipal works to digest the expensive price makes civilian is still out of reach, by the weakness of the international market, LED exports also suffered poor. Shenzhen, more than 1,300 LED business the vast majority of small and medium-sized enterprises, can not be able to survive, industry closures has already begun, the industry is facing a brutal shake-out. At present, although the LED as a whole showed the trend of rapid growth, but every day in Shenzhen LED enterprises are facing bankruptcy or winding-up.

According to the National Development and Reform Commission predicted that the \"12th Five-Year\" period, LED industry is expected to achieve the goal of quadrupling. Penetration rate of 20% to the end of 2015, China\\ s LED lighting. Industry is generally estimated that more optimistic, expected in 2015, the outdoor LED lighting penetration rate of 60% -80% penetration rate of 25% -30%, indoor commercial LED lighting, indoor home LED lighting penetration rate of about 5% – 10%, the overall penetration of the Chinese market, LED lighting will reach or exceed 20%.

Policies to promote energy conservation, leveraging LED lighting applications market is conducive to the industry and long-term development. A number of semiconductor lighting guide policy in the fourth quarter is expected to be launched soon. It is learned that the Ministry of Finance is the competent department in conjunction with the Development and Reform Commission, plans to subsidies is expected to launch in the fourth quarter of semiconductor lighting products. In addition, the Ministry of Science and Technology \"10 City,, 10000,\" the guidance of the implementation of the measures is expected in the fourth quarter release.

It is understood that the LED production process can be classified as a substrate manufacturing, production of epitaxial wafers, chip manufacturing, chip packaging and LED products, the production of five stages. Among them, the substrate in the LED chip play the role of bearing and fixed, up to 92% market share of the sapphire substrate.

Topology Research Institute is expected to LED lighting market in 2012 in mainland China will be a large outbreak, the market will grow from $ 2.8 billion in 2011 surged to $ 8,000,000,000, an increase of 185%. The second half of 2012, mainland China LED lighting penetration over 30% to about 31%.