Recently, climate change and energy problems have surfaced as important issues. As such, since the 2008 global economic crisis, the green industry has risen as a new growth model, and many countries have been pursuing low-carbon green growth. In line with this current trend, LED (light-emitting diode) is in the limelight in many countries as the next-generation lighting device, as it is suitable to low-carbon green growth because it saves energy, is environment-friendly and high-efficiency, has a long life, and can produce diverse colors.
Beginning with the launch of the National Semiconductor Lighting Process in 2003, China has been actively and fully nurturing the LED industry. Since early 2009, it has been implementing the ‘Ten Cities Ten Thousand Lightings’ project to supply LED lighting products to 21 semiconductor lighting application model cities. On the strength of the Chinese government’s nurturing policy, the production output of the Chinese LED industry has continued to record an average annual growth rate of around 15%, and the market size has also been growing at an average annual rate of around 12%.
China has been nurturing the LED industry as a future strategic industry, so Korea, which is competing and cooperating with China, should be well-acquainted with China’s LED industry trends and nurturing policy. Also, the growth of China’s LED industry varies by region, so diverse approaches are needed when cooperating with or advancing into different regions. Existing researches on the LED industry in China are limited, however, to the introduction of development strategies and current status at the national level, and there are few literature on approaches by region. Thus, in this research, based on existing literature on the LED industry in China, the LED industry of the region of Jing-Jin-Ji(Beijing-Tianjin-Hebei) was analyzed via such methods as a literature review, a statistical analysis, a case study, and comparison with other regions. The following conclusion is arrived at.
First, Jing-Jin-Ji the pioneer region in mainland China’s LED industry, takes the lead in R&D for wafers and chips, but its research outcomes have been hardly industrialized, and few companies are engaged in packaging and application. In general, the market has not been properly formed, compared with the southern regions, and the production output of the LED industry in China is small but the volume of use of LED application products is greater than in other regions. The advancement of foreign firms into this region is poorer than in the southern region, where the LED industry is well developed. Accordingly, Jing-Jin-Ji still has more merits than the Pearl River Delta or Yangtze River Delta regions, which are already saturated, and this gives Korean LED companies the opportunity to pioneer in the market.
Second, with regard to advancement into the domestic production goods market, the degree of utilization of the import markets of Beijing and Hebei is very low, so exports to these two regions should be expanded. To achieve this, advance production localization and expansion of exports by strengthening market strategies can be considered.
Third, in the application areas, the largest future application market is expected to be the backlight market, which is anticipated to give the greatest opportunities to Korea’s electronics and semiconductor companies. Particularly in Tianjin the main business lines of which are IT and electronics, Korea should make the most use of its superior position in the LED TV industry. In the automobile LED lighting area, major automobile companies such as Beijing Hyundai Motors and Beijing Motors, which are located in Beijing, will have great advantages. With regard to LED lighting, it is desirable to preferentially advance into LED lighting application model cities such as Tianjin, Baoding, Shijiazhuang.
Fourth, with regard to cooperation with local companies, the display area is advantageous to Jing-Jin-Ji, and the wafer and backlight areas are worth the region’s consideration.
Fifth, in the early stage of advancing into the domestic LED market of Jing-Jin-Ji, it is desirable for the region to supply the goods to government-led projects such as the installation of LED streetlights, and to use such strategy to heighten awareness of the products and the company.
Sixth, the Korean government should expand its R&D investments in the LED area, reinforce financial support for the industry and tax benefits, actively nurture LED technological manpower and specialty enterprises, promptly expand national standards, and occupy international standards in advance to cope with severe competition with China in the future. At the same time, the LED industry nurturing policies of Korea and China coincide in many respects, so cooperation should be reinforced in areas such as R&D and human resources, mutual information exchanges, and network building through the holding of joint academic-industrial seminars.