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The development of the domestic LED industry started from the 70's of last century. Mainly made up of materials like GaP and GaAlAs, the LED research and industrialization has begun. Many colleges and institutes got into the study of the High Bright LED based on the 4-element series based on InGaAlp and GaN system from the 90's. Wha's more, a lot of powerful enterprises have been investing in High Bright and White LED industry in recent years, thus promoting the industry development rapidly to a yearly turnout of 10 billion pieces of High Bright LED chips and 30 billion pieces of packaging. As it is shown in the figure, the growth rate of High Bright chips exceeds 100% while that of the device exceeds 50%. According to the statistics and evaluation made by the industry association, excluding the overseas investment enterprises, there are more than 1000 domestic companies based on LED industry. Except for the epitaxial equipments and part of raw materials, domestic companies have a strong matching capability of major raw materials, manufacturing equipments testing instruments and key matching parts of led spot light products, such as phosphor, LED driving IC, application lamps, lead frames and matching tooling. A complete industry chain has been formed.

So far there are more than 100 foreign invested enterprises that are related to LED. With the further implementation of the government policy of reform and open-to-the-world, continuous improvement of investment environment as well as its increasing potential wholesale led lights market, more and more investment from all over the world will be attracted to mainland China, especially for that from Taiwan, Korea and Japan, possibility of large scale investment is even more. It is most likely that Mainland China will become one of the important bases for the world LED industry in the near future