GCL's high-profile layout of LED upstream is not afraid of capacity "red light"
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In the photovoltaic industry, GCL has achieved the top spot in the polysilicon field, and its model is to monopolize the upstream of the industrial chain at a low cost. Can this GCL enter the LED upstream, can it form a monopoly on LED raw materials? Or is it another time to repeat the polysilicon cover and become the "price destroyer" of sapphire materials?
GCL is advancing into the LED upstream
Although the LED industry has been mired in competition due to increased competition and price wars, industry insiders say this is the darkness before dawn. The global incandescent light bulb ban including the United States, Japan, and China is fermenting. LED lighting is replacing the traditional lighting and even energy-saving lamps. Therefore, the industry's view is that this year will be the first year of LED lighting, and the next year will be commercial, Industrial lighting will explode rapidly, and upstream material manufacturers have more room to grow than other links.
It is in this expectation that PV giants GCL decided to “cross-borderâ€. “The first phase of investment is 300 million US dollars. It is expected to reach 10 million pieces by the end of 2012. In the next two to three years, we will continue to invest more and achieve 20 million pieces of production, which will produce the largest production capacity and processing capacity in China. The strongest and most complete sapphire substrate material industry chain.†An executive director of GCL (Group) Holdings Co., Ltd. told the China Business News that GCL will focus on the upstream of the LED industry and have confidence. Control the cost of this link to the most competitive range, and strive to become the global LED upstream material market leader.
In fact, GCL has been involved in the LED industry for a long time.
Since the establishment of GCL Optoelectronics Technology Holdings Co., Ltd. in 2010, GCL has quietly launched the research and development and production of substrate materials, epitaxial materials, chips and crystal production equipment for the development of optoelectronic devices, and began to vigorously lay out the LED industry in 2011. The sapphire substrate material upstream of the industrial chain was selected, and the production bases were established in Suining and Xuzhou, Jiangsu. Despite the initial arrival of LEDs, Zhu Xinshan, chairman of GCL Group, announced that it has begun to plan to separately market its photovoltaic assets, and the “ambition†of entering the LED industry is evident.
In this regard, an analyst who has long been concerned about the LED industry told reporters that there are only two or three companies that can stably supply sapphire substrates in China, and GCL has certain advantages in terms of technology and capital. Because the upstream part of LED in research and development has certain technical commonality with solar energy, compared with other newly entered enterprises, the success rate of GCL is relatively high. "However, whether GCL can monopolize the upstream of the industry depends on whether the products after mass production can be recognized by the market."
LED excess is obvious
However, the companies that covet the LEDs are not a GCL, and other companies are equally promising.
It is understood that the sapphire substrate material project invested by Guiyang Industrial Investment (Group) Co., Ltd. (hereinafter referred to as “Guiyang Gongtouâ€) has also been put into production recently. The total investment of the project is as high as 2.2 billion yuan and the annual output is 30 million pieces. The scale of production capacity should not be underestimated.
The reporter learned from the project's equipment supplier GT Advanced Technologies that the company has received orders for sapphire crystal furnaces worth more than $950 million since the end of 2010, most of which are from companies based in China. At the same time, Tom Gutierrez, president of GT Advanced Technologies, also revealed to reporters that he is currently working with Asian customers including China to help them increase production at the sapphire production plant. 