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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 GaAlAs and GaN system from the 90's. What'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 products, such as phosphor, LED driving IC, application lamps, lead frames and matching tooling. A complete industry chain has been formed. Some domestic colleges and institutes have started the basic research on Ⅲ-Ⅴ family compound material epitaxial long ago, therefore, when ultra high bright LED was successfully developed after research was done on the 4-element series based onInGaAlp and GaN in the 90's internationally, research and development was started in this aspect in time by the following research units and organizations – Beijing University, Qinghua University, Nanchang University, Shandong University, South China Normal University, Beijing Industrial University, CAS Institute of Semiconductors, CAS Institute of Physics, China National Electronics Group. Their chief fruits are: GaN epitaxy layer grown on silicon base, GaN basic blue light wave length shift, ohm problem on P section, ITO transparent electrode application, Al2O3 base peel-off by laser, raising the efficiency of extended inner quanta and outer quanta of the die, anti-light attenuation ability and the heat sink of power die, etc. The developed power LED die could be industrialized, its luminescence efficiency is about 40lm/w, and could reach as high as 50lm/w, the emitting power of single device is 150mw，and could be as high as 190mw.

LED doomed its huge market will develop into a huge industry. Overall, the domestic industry in terms of size has been unsatisfactory, the typical case is the integrated circuit industry and the LED panel industry, the domestic IC industry is now tail between its people, LED panel industry is riddled with illness, technology complex, large investment and a weak infrastructure is the main reason, while the LED industry will break the curse, and can bring about the upgrading of industries China's LED industry is currently a disadvantage lies in the fact that a LED products of domestic enterprises and overseas technical level there is a certain gap in the pursuit of high-end customers at a disadvantage;

Second, the domestic IC manufacturing base compared to Japan, Korea and Taiwan, these strong LED weak areas, LED epitaxial, chip manufacturing capacity, technological level and poor external support of some materials, the learning curve longer will take some time to cultivate;

Third, the size of the domestic LED business is still relatively small, most of them did not exceed 100kk / monthly energy (blue green), this state of affairs in the next two years will be improved; four, domestic R & D concentrated in universities and research institutes, production in the enterprises, the lack of R & D results of the rapid industrialization of the conversion mechanism, which should be learn from Taiwan's Industrial Technology Research Institute of the technical achievements the licensing mechanism to speed up the conversion rate of technological achievements and scientific research institutes can not be for their own industry rather than the outcome of the latest technology and timely transfer to industry, the Government should regulate the development of relevant policy-related behavior; five domestic lack of core patents, in particular related to the industry in the long-term development of the Blue-ray core patents and patent lack of white light, which will enable long-term development of domestic industries to function.