While many LED companies in China’s Henan Province are devoted to accessory assembly and price wars on low-end products, few are conducting technology R&D in a genuine manner. And they are confronted with competitions of not only technology capability, but marketing as well.

Zhang Mingguang, technical manager of Henan Yutong Optoelectronic Technology Co., Ltd., told reporter that objective conditions of technology, talents and policy support have kept the city’s LED industry linger on low level.

According to industry insiders, challenges facing Henan LED industry include generally small scale, low concentration, core patent pursuit and market competition chaos. In the city, low and mid-end LED products are sold most, but they are at a disadvantage in the competition compared with products manufactured in major cities like Shenzhen.