How LED lighting companies use the capital market to accelerate their own development?

After rapid development in the past 10 years, China's LED industry has become the world's most important and fastest-growing LED market. China is not only a big LED manufacturing country, but also a big LED application country. After escaping from the financial crisis, semiconductor lighting applications rose by more than 30% to RMB 60 billion. How can LED companies use the capital market to accelerate their development?

The Guidelines on Further Implementing the GEM Recommendations clearly define the positioning of the GEM as “giving play to market functions that promote the development of independent innovation enterprises and other growth-oriented entrepreneurial enterprises, support and promote the development of national strategic emerging industries, and support and guide”. Enterprises in the direction of the development of national strategic emerging industries, especially in the fields of new energy, new materials, information, biology and new medicine, energy conservation and environmental protection, aerospace, marine, advanced manufacturing, and high-tech services, and in other fields Innovative ability and strong growth company." At the same time, the objective of the GEM is to “achieve a national innovation strategy, promote industrial upgrading, and provide a financing platform for innovative high-growth companies”.

The LED industry has a relatively long industrial chain, and the technical characteristics and capital characteristics of each area are very different. From the upstream to the middle and then to the downstream, the industry entry barrier is gradually reduced. Upstream epitaxial materials and chip manufacturing have typical "double high" (high technology, high capital) characteristics, midstream packaging technology and capital investment in the middle, downstream display and application in the technical content and capital investment to be lower.

The LED industry is a high-tech industry, and it is an industry encouraged by environmental protection, energy conservation and emission reduction policies. It is undoubtedly a key industry supported and guided by the GEM. At the same time, China's LED packaging and application industry is developing rapidly. Most of the companies are small in scale. They have a very good connection with the positioning of the GEM. However, there is no LED packaging and application company listed on the GEM. Therefore, LED packaging and application companies should seize this opportunity in the capital market, improve mechanisms, integrate enterprises, expand scale, and actively use GEM for development.

From the point of view of industrial economics analysis and the development experience of Taiwan's LED industry, supporting and guiding the development of the LED middle and lower reaches will drive the overall rapid development of the LED industry. Taiwan's LED industry is a typical downstream cut-in mode, that is, through more than 20 years of experience in the downstream packaging and application areas, it has gradually extended to the upper reaches of the epitaxial materials and chip manufacturing.