Production halt of Hiboled Photoelectricity Co.，Ltd has casted light on the development problems of Chinese LED industry. Three years ago, in China, LED enterprises reached 3000 in number, but all of which were small and medium-sized businesses. Given that high technology and patents are mastered by developed countries like the US, Germany and Japan, the next few years will witness an all-round shuffle and transformation in domestic LED industry.

Some say that in the case of Hiboled, it has not only impacted the enterprise itself, but also sparked concern of LED industry. Industry insiders believe low and medium-end products have piled up for market players have blindly followed suit and thus prices have been depressed by prolonged chaotic competition. What’s more, export-oriented LED enterprises at home have been affected by stagnant global economy, resulting in overcapacity.

“LED industry shuffle will last until mid 2014.” predicted Guo Xiuze, Guangdong Illuminating Electric Appliance Association. NVC spokesman also commented, in current luminaire market, small and medium businesses overlook control on product quality, largely export low-end product and lack market competitiveness. All these have pushed small and medium businesses in to a plight, and thereby an industry shuffle is imminent.