At the invitation of the President of the Republic of Korea Park Geun-hye, President Xi Jinping will begin a two-day state visit to South Korea. Vice Foreign Minister Liu Zhenmin introduced at the briefing of Chinese and foreign media that President Xi Jinping will hold talks with President Park Geun-hye, deliver a speech, and attend economic and trade activities. At the same time, the two sides will issue a joint document to sign a series of cooperation documents in the fields of economy, trade, finance, environment and consular affairs. China is Korea's largest trading partner, largest export market, largest import source country and largest overseas investment destination. South Korea is China's third largest trading partner and the fifth largest source of foreign investment. The country of origin of international students. According to reports, Xi Jinping will communicate with famous Korean companies such as Samsung and LG at the economic forum on July 4, which is undoubtedly a good news for the LED industry. A series of cooperation documents will further deepen the domestic and Korean LED industry. Communication and cooperation. The difference in LED development between China and South Korea Since the invention of white LED in 1997, experts have studied the possibility of white LED entering the general lighting field. As a light source, LED advantages are reflected in three aspects: energy saving, environmental protection and long life. For energy is very tight, it is undoubtedly of great significance. China's LED industry started in the 1970s. Due to the late start, early domestic LED companies were mostly packaged enterprises. Epitaxial wafers and chips were all imported from overseas. LED products are mainly used in low-end fields such as signals, signs and digital displays. After more than 30 years of development, China's LED industry has initially formed a relatively complete industrial chain including epitaxial wafers, chip manufacturing, chip packaging and LED product application, and has become the fastest-growing transformation and upgrading in the global lighting industry. One of the areas. In 2013, after the 2012 financial crisis, it bottomed out and became another rapid development year after 2010. In 2013, the global economic recovery and application demand recovery, as well as domestic energy conservation and environmental protection policies intensively introduced, under the influence of these factors, the domestic LED industry achieved rapid growth. According to the recently published "2014-2017 China LED Industry Market Research and Forecast Analysis Report" published by OFweek Industry Research Center, the scale of China's LED industry reached more than 250 billion yuan in 2013, an increase of 34.17 compared with 2012, which is the year-on-year growth after 2010. The largest year. From the perspective of the industrial chain, in 2013, China's LED industry's growth rate of upstream epitaxial chips, midstream packaging, and downstream applications were significantly higher than the 2012 level. In 2013, the scale of upstream epitaxial chips in China reached 10.5 billion yuan, the package size of the middle reaches reached 40.3 billion yuan, and the scale of downstream applications exceeded 200 billion yuan. In South Korea, the development of the LED industry is far later than that of Taiwan, Japan and China. In the early years, only a few companies such as LG, Samsung Electronics and Optoelectronics invested in LED production. However, since 2002, with the growth of Korean mobile phone production and the extensive use of GaN-based LEDs as backlights for mobile phone displays, the demand for LEDs has increased significantly, and the development of LED industry in Korea has entered a new era. In general, South Korea has an advantage in the field of LED chips, and China has an advantage in the field of LED packaging. In particular, if you produce products that incorporate Korean LED chips, you can produce high-performance and cost-effective products, such as products that combine Chinese LED packaging technology, to achieve low-cost scale manufacturing. Development model analysis China has a huge lighting industry and lighting market. Wu Ling, secretary-general of the National Semiconductor Lighting Engineering R&D and Industry Alliance, said here on the 16th that China will strengthen international cooperation in semiconductor lighting and accelerate the development of the LED industry. Green development with energy conservation and environmental protection as the main symbol has become the mainstream of the 21st century, and semiconductor lighting is China's successful breakthrough in energy conservation and emission reduction. With China's high attention to the development of the semiconductor lighting industry and the rapid development of LED technology, semiconductor lighting applications have begun to spread in China. In the past decade, China's semiconductor lighting technology and industry have developed at the most rapid stage. South Korea's LED industry is developing late. In the development of high-tech industries, South Korea pays attention to its comparative advantages and is good at seizing the opportunity of industrial transfer. In the process of introduction and absorption, it implements the strategy of large companies, protects its domestic market, and promotes localization. At the same time, the government set up a full-time organization to manage, plan and guide industrial development, formulate relevant industry and technology development strategies, and carry out high efficiency under the coordination of the government. In the early days of the development of high-tech industries, South Korea generally used the domestic market as a testing ground for innovative services and products, and played a key role in the vigorous development of high-tech industries and the entry into the international market. The Korean LED industry can rise in just two or three years, and its contribution to the domestic market is quite large. In particular, Korean mobile phone manufacturers have contributed to the LED industry. South Korea is the world's third-largest mobile phone producer. The demand for mobile phone backlights has not only boosted the development of the domestic LED industry, but also contributed to the prosperity of Taiwan's LED industry. The current status of the Chinese and Korean market The current Korean market is rapidly becoming popular in Korea's major shopping malls and supermarkets due to its advantages in terms of quality and low price. A person in charge of a lighting company in Gyeonggi Province, South Korea, said that the LED lamp market produced by Korean SMEs is priced at 7,000 won (about RMB 42), while the Chinese LED lights in large supermarkets such as EMART and Lotte Mart are less than 5,000 won. Some large supermarkets in South Korea have also affixed Chinese products to their own labels for low-cost sales, which not only meets the needs of the Korean circulation enterprises, but also meets the Chinese side's goal of expanding the market share in Korea. In China's LED market, the scale is growing steadily, and South Korea can also expand the market by cooperation. South Korea's LED market is developing in various fields such as smart homes, and China is first promoting mass in large cities with high penetration rates. If the products that apply Korean advanced technology are pushed to large cities in China, and the penetration rate is improved, and the penetration rate in second- and third-tier cities is sought, the market scale can be comprehensively increased. The market penetration rate of LED lighting products in China is now about 9, and the price has dropped to the level that can be accepted by the public. China leads the packaging technology of the LED industry, and the national productivity of the chip is also increasing. Some insiders have said that the Chinese government has eliminated high-energy-consuming products as of November 2011 and has continuously increased LED production lines. As LED lighting fixtures become the trend of the times, the price of LED products is declining and the penetration rate is constantly increasing. In the future, in addition to the current market cooperation, such as through the China National Semiconductor Lighting Application System Engineering Technology Research Center and the Korea Optical Industry Promotion Association and other platforms, can provide services together. Cooperation between the two parties beyond the concept of the state can be carried out. Therefore, it is necessary to eliminate trade barriers and actively use the respective advantages of the two countries to carry out cooperation. With the increasingly friendly relations between China and South Korea and the increasingly close bilateral economic exchanges, in terms of the LED industry, cooperation between South Korea and domestic LED companies has continued to deepen. For example, Korea Peiyu Electronics Co., Ltd. cooperates with Guoxing Optoelectronics to jointly develop LED lighting market; Skyworth and LGDisplay strategically cooperate to launch OLED TV among domestic enterprises; Songwei Lighting, Rishang Optoelectronics, Zhongyue Optoelectronics and world famous LED manufacturers South Korea's Samsung Electronics signed a strategic cooperation agreement and other excellent cooperation cases. Now, Mr. Xi Jinping’s visit to South Korea and the signing of a series of cooperation agreements, deepening China-ROK economic and trade cooperation, and promoting the China-South Korea FTA negotiations have brought an opportunity to the LED industry.