Photonics: the market is vast, and the industry chain needs improvement

Japan OITDA (Optical Industry Development(POF) will become the new market hot.
Association), a report predicted, opto-electronicsChinese enterprises are now able to scale production
industry will in future play an important role in society,of fiber optic cable all the needs of the market
including information applications, energy conservation,products. In the fiber optic cable products, has been
bio-medical, etc., can be said that, optoelectronicsable to develop according to needs of the market of
industry is the pillar industry of the 21st century one.new products, including undersea cables, ADSS,
 OPGW cable and other specialty areas. In the optical
Looking to the future, opto-electronics industry willfiber products, domestic fiber market has been highly
continue to flourish. The market needs, therecognized in the domestic trunk lines have been
optoelectronics industry, mainly in the followingaccumulated on the use of more than 20 million core
aspects may be relatively large increase in space:km. However, the impact of overcapacity, domestic
optical networks and optical access network, such asenterprises are not optimistic about the prospects.
Fiber To The Home (FTTH); optical storage in theGenerally speaking, optical fiber and cable industry,
Blu-ray disc storage, optical holographic storage; Lightthe recovery will take some time, the problem of
Show The large-size LCD displays, OLED displays;excess production capacity will continue.
semiconductor lighting and solar cell use; In addition,Optics
the optical fiber sensor, the medical field there areOptics industry, there have been signs of warming
relatively large room for growth. In these areas,from a global perspective, 2004 Nianguang device
optical storage and optical display the largest shareshipments increased significantly. In the optical passive
has exceeded 50%.device, the domestic enterprises, although the
Light Show:possession of a certain share, but still a lack of
LCD / PDP / OLED each has its advantagesindependent intellectual property rights of key
Light the display industry, mainly in two areas: thetechnologies and become the bottleneck. For nearly
traditional cathode ray tube (CRT) monitors and flat10 years of domestic enterprises to develop very
panel display (FPD). Flat panel displays also include:rapidly, there has been a long fly, flames and many
liquid crystal display (LCD), plasma display panel (PDP),other outstanding enterprises, which take the
organic light-emitting display (OLED), field emittingintroduction of digestion and absorption of
display (FED), electroluminescent display (ELD) and sore-innovation of the road, through unremitting
on. The former area is now a technical recession inefforts, today, these companies produce active and
the period, from PC monitors to television sets, apassive optical components in the domestic and
large number of flat-panel displays have beeninternational on the market are extremely
entering the market. 2003 CRT's market share hascompetitive.
dropped to 43%, FPD's market share has reachedOverall, the optical communication industry, there
57%, flat panel displays to replace the traditional CRThave been signs of warming, but to restore the level
monitors lines has been the general trend.prior to 2001 will take some time. The development
LCD and PDPof optical communication industry, the fundamental
The main features of LCD displays for high-resolution,driving force is the emergence of new business, as
low power consumption, long life, cost is relativelyIPTV and other broadband services such as the
high; PDP displays the main features of the screenaccelerated development of optical communication
size large, relatively low cost.industry, a full recovery will come.
PDP (Plasma) flat-panel display technology because ofOptical Storage: increasingly high-density wavelength
its cost advantages are mainly used in size over 40is shorter and shorter
inches of the large-screen color TV, while theOptical storage is mainly refers to the CD-ROM as a
TFT-LCD at 40 inches color TV market has a strongmedium used for recording and reading information
competitive edge. TFT-LCD and PDP compared toon optical storage technology.
the advantages of high resolution, so as theOptical Storage Industry includes key components,
TFT-LCD technology, continuous improvement andintegration components and entire machine in three
cost reduction, it will also be large-screen color TVparts. The main advantage of optical storage
market pose a challenge to PDP. 40-inch market willtechnology are: easy-to-low-cost, large number of
lead to a price war, according to South Koreanreplication, larger capacity, it is very suitable for large
electronic display Industrial Research Associationamounts of information preservation and
(EDIRAK) analysis, PDP is still a lot of price reductiondissemination.
factors, but the funds it needs even less than half ofCompared to optical communications industry, the
the LCD. Although LCD screens have a better quality,optical storage industry is relatively stable. Optical
but the PDP may be in the near future to catch upstorage technology development trend of storage
with it. Thus, in this size market, certainly has a pricecapacity along the following diagram.
war. Led by Samsung flat-panel display suppliers areSemiconductor laser diode (LD) is the optical storage
actively expanding production capacity, building newsystem, a key component, CD key to use a
production lines to meet market needs.wavelength of 780nm semiconductor lasers, DVD use
LCD monitors main directions of development are:a wavelength of 650nm red semiconductor laser,
home TV from a PC monitor turned to expandingBlu-ray DVD using a wavelength of 405nm blue LD.
the screen size, lower costs and increase theThis part of the patented technology largely by
brightness. PDP displays the main directions offoreign, especially Japanese companies held.
development are: to continuously reduce costs andCD storage market is basically saturated, the market
improve quality.began to decline in the total, while the DVD demand
China currently has BOE, SVA two manufacturershas begun to rise. In 2002, DVD laser sales total 148
LCD, but technology is not advanced enough. In suchmillion on sales of 4.48 billion U.S. dollars. According to
circumstances, the Chinese color TV enterprises willthe Organization has forecast for the DVD of the
face pressure from two sides. First, the value of650nm laser will be an annual growth rate of 7%
extrusion, because the focus of significant industrialgrowth in 2009 will reach 1.5 billion. The main
value upward, from the color TV sets to the displaymanufacturers are Sony, Sharp, Mitsubishi, and
panel mobile, the value of income share of ChineseMatsushita, these companies market share of 75%.
enterprises will become increasingly low. Second, theFor its part, the basic situation is a huge market and
upper reaches of extrusion, vertical integration ofproduction, but the lack of independent intellectual
large enterprises by controlling the key componentsproperty rights. The first half of 2005 China's optical
of the upper reaches of manipulating the prices ofstorage sales in 2004 rose 16.8 percent over the
upstream products and cross-subsidies, etc., so thatsame period, the market growth rate than previous
Chinese enterprises to be marginalized. As the flatmarket expectations.
panel display production line of a huge investmentAccording to statistics, more than 80% of the core
required, for example, seventh-generation LCDcomponents of optical disc machine head, more than
production line invested billions of dollars for the85% of the players, more than 75% of the recorder
Chinese color TV enterprises is difficult to afford onare produced in China. Although more than 80% of
their own. In this case, how the introduction ofthe optical head produced in China, but Chinese
national policy guidance laid down digestion andcompanies accounted for only 7% of independent
absorption of another innovative way to achieveproduction, but mostly CD optical head. Player output
leapfrog development, Chinese enterprises are facingwas immense, but most of them are assembled
serious challenges.processing. Recorder are almost always produced by
OLED displaysforeign-invested enterprises, Chinese enterprises are
Organic electroluminescent (Organic Electrohardly mentioned.
Luminescence), referred to as OEL, in recent years,In addition, the CD-ROM machine is a dedicated chip,
one of the most popular light-emitting technologies,all rely on imports. To DVD industry, for example,
of which small-molecule light-emitting device is knownusing a Japanese expert as saying: "In the DVD
as organic light-emitting diode OLED (Organicindustry, the world's smiley face curve (also known
light-emitting diode). The main advantage of OLED isas U-shaped curve), China faces the chin in the end -
a self-luminous, high brightness, high efficiency, largeonly to have assembled a strong processing capacity,
angle.not in the hands standards and core patents. while
1997 Pioneer Electronics of Japan launched aJapan and the United States were at the top of the
commercialized OLED products - car audio display,curve two Japanese companies control almost all of
which greatly encouraged the industry to the OLEDthe core patented technologies, including 95% of the
of investor confidence. According to statistics, nowoptical head, 99% of the core components of the
the global OLED market, adding there are 100 oroptical lens patents; and the United States by virtue
more vendors to compete, we all want in thisof a powerful Hollywood The programming capacity,
emerging market, the future of display technology anas the world's largest CD-ROM content production
upper hand. The 2005 World OLED market size ofbase. "
518 million U.S. dollars, with the major vendors activelyThis is the kind of cheap labor, consumption of
involved in the development and mass productionresources, destroying the environment at the
technology, OLED market will continue its rapidexpense of economic growth itself.
growth is forecast in 2009 OLED industry scale mayIt from one angle, the CPC Central Committee put
exceed 5.0 billion.forward the "to enhance capability of independent
Currently, OLED is mainly used in small-size screeninnovation and building innovation-oriented country" a
display, such as mobile phones, digital cameras, MP4major strategic decision the correctness of the
players, screens and so on. To become mainstreampatent description, standards, brands, trademarks and
large-screen OLED displays still have a long way toother independent innovation for businesses is critical.
go. First of all, LCD and PDP also has a strongIn the optical storage industry, the main trend is
market, as just introduced a new technology, it isbecoming shorter and shorter wavelengths, storage
difficult in a short time under the control of thedensity, higher and higher. Now the mainstream
current occupation of LCD market share. Second, themarket to Red DVD, but Blu-ray DVD will soon enter
current OLED There are still some technical problems,the market.
such as a shorter life span than LCD. In addition, asEnergy and semiconductor lighting: great potential for
technology and cost issues, OLED screen productsdevelopment
are also large-scale production can not be achieved.Energy is this century's most prominent global issues,
But experts generally believe that, after 2010, OLEDenergy industry will become the pillar industries in the
display may gradually replace the LCD screen.world, one of the market potential in this area would
Optical Communication: the need for new businessbe enormous.
boostIn the optoelectronics industry, the most
Information explosion in today's society, societyrepresentative for the energy sector is the
surge in demand for information capacity, while thesemiconductor lighting industry and photovoltaic
emergence of optical communications high-capacityindustry (solar cells).
information transmission is possible. OpticalSemiconductor Lighting
communication industry in the optoelectronics industryThe most critical semiconductor lighting devices are
occupies an important position, it can be divided intowhite LED, semiconductor lighting Due to
three parts: optical transmission equipment, opticalpollution-free, long life, light-emitting efficiency can be
fiber cable, optical component. Optical transmissionmuch higher than conventional lighting and other
equipment which mainly refers to the opticalfeatures, will be an effective means of energy-saving
communication transmission system solutions, includingand environmentally friendly lighting. The experts do
DWDM (dense wavelength division multiplexing)calculations, China's current annual electricity used for
products, SONET / SDH products, as well as ASONlighting close to 250 billion degrees, if it is to have 1 /
(Automatically Switched Optical Network), CWDM3 using semiconductor lighting, saving 80 billion a year
(coarse wavelength division multiplexing), MSTPdegrees can be equivalent to the annual Three
(Multi-Service Transport Platform), ULH (ultra-longGorges Power Station generating capacity.
distance optical transmission) and other advancedWorld's three major lighting manufacturers - General
technologies.Electric, Philips, Osram and semiconductor companies
Optical fiber cable is the optical transmission medium.have already set up semiconductor lighting company.
Optics refers to optical communication systems areThese developments indicate the semiconductor
mainly used in active and passive optical components,lighting industry, a leap-forward development of the
including semiconductor lasers, semiconductor opticalcritical point is coming.
amplifiers, optical fiber amplifiers (EDFA), WDMBut now, the luminous efficiency white LED is not
multiplexing / de-multiplexer, connectors and couplers,enough to replace traditional fluorescent lighting,
etc. . Optical communications industry since 2000,experts predict that by 2015, after the spring of
reached a peak in the second half, the overallsemiconductor lighting and then gradually come. Prior
industry trend of depressed until the end of 2004,to that, LED industry is mainly concentrated in
and gradually with the recovery trend, mainly due tobacklight, automobile lights, special lights, traditional
the information needs of increasing demand forlights market and so on.
communication bandwidth-increasing.Solar
Optical transmission equipmentPhotovoltaic (solar cells) is another industry with a
2003 -2004 year, the field of optical transmissionbright future for the industry, large-yang energy is
equipment, there have been signs of warming. Globalinexhaustible. Since 1999, countries in the world,
optical network equipment market, a major supplierespecially the United States, Japan, Germany and
of Alcatel in 2004's second quarter sales rose 3.7%other Western developed countries have launched
to 3.1 billion euros. In fact, the recovery of opticallarge-scale national development plans and
transmission equipment industry indicates that thephotovoltaic solar roofs program to stimulate and
overall recovery in optical communication industrypromote, the world PV industry at an annual growth
began. At present the development of opticalrate of more than 30% maintained a rapid
transmission equipment industry, there are three maindevelopment.
trends: investment hot spots from the light opticalPV industry experts predict will be the first half of
metro backbone network turned to new technologiesthe 21st century has become an important basis for
such as ASON, MSTP and so began the occupationenergy sources. Faced with such a broad
of the market, optical access network, such as FTTHdevelopment prospects of photovoltaic enterprises
and other research and development is becoming ahave a tendency to rush to expand production
hot spot.capacity. But the objective reality is that on the one
Optical Fiber and Cablehand the expansion of the whole industry chain is not
Optical fiber cable in 2002 entered the stage ofsynchronized, showing the whole industry chain,
excess capacity, the global demand for optical fiber"great on the small" a "pyramid" pattern of silicon
and cable market, a substantial decline in demandvendors rate of expansion of production capacity has
from 2001 to about 100 million kilometers down tolagged far behind in the cell-chip factories; the other
about 60 million kilometers. Growth of optical fiberhand, for the protection of their international
and cable manufacturing costs, while prices fell,competitiveness of solar cells, solar panels required
making the situation more and more difficult opticalfor the core of the export of raw materials in Japan,
fiber and cable businesses. Corning, vice president andGermany, Sweden and other countries have reduced
general manager of the fiber optic business, Mr. Ericthe supply to China, the domestic photovoltaic
S. Musser made OFC/NFOEC2005, the future trendsmajority of upstream and downstream enterprises in
are: low water absorption peak fiber, 50mmthe "bricks without straw" position.
multi-mode fiber, G.656 fiber, plastic optical fiber