NLIA and clusters advance China's domestic laser industry

I have long suspected that the annual Laser Market Review & Forecast
(http://www.laserfocusworld.com/laser-marketplace-2013-laser-markets-rise-above-global-headwinds.html), as published in the January 2013 issue of Laser Focus World, underestimates the total laser market simply due to the fact that it is difficult to get actual production statistics from domestic laser companies in China. The presentation from Bo Gu--respected photonics industry expert formerly with IPG and GSI and now an independent consultant--at our 2013 Lasers & Photonics Marketplace Seminar
(http://www.marketplaceseminar.com) held during SPIE Photonics West confirmed my opinion. According to Gu, there are 200 laser companies in China, 150 job shops, 60,000 professionals in the laser field, and 25 companies (and perhaps more) alone making fiber lasers. You can watch a short video of Bo Gu here:



Gu explained that China has historically manufactured its own low-power lasers for marking/micromachining applications, but has recently made inroads into high-power lasers; for example, Raycus just completed a 4 kW fiber laser. Gu discussed how the Chinese government is eager to reduce or eliminate its dependence on foreign-manufactured lasers and mentioned that just in 2012, the National Laser Industry Alliance (NLIA) and the China Laser and Optoelectronic Cluster had been formed with that precise goal. 

In its late December 2012 news posting, HG Laser wrote about details of the NLIA at http://en.hglaser.com/en-news/en-new/468.aspx. The news story wrote that on December 22, 2012, the NLIA was composed of 42 enterprises and institutions , including Wuhan HuaGong Tech  Co., Wuhan Raycus Fiber Laser Technologies Co., Shanghai Aircraft Manufacturing Co., Sany Heavy Industry Co.,and HuaZhong University of Science & Technology, and that the Secretary of the HGTech Party Committee was recommended as the chairman of the Alliance. The image below shows the NLIA ceremony taking place:

The report continued, "NLIA has accomplished numbers of research projects and organized a lot of science plans. The 'Industrial Laser Source & Equipment Key Technology Research', supported by 'The 11th Five-year Plan', has been accepted by Chinese Technology Department. It's considered by the Chinese Technology Department as the key to technology advancement of laser source & equipment in China and as the best way to get rid of being dependent on overseas laser equipments, technology and intellectual property."

It also specifically discusses the 4 kW Raycus laser: "Otherwise, 4KW Fiber Laser Source, co-developed by HGLaser, Raycus and HUST, was accepted by Science & Technology Department of Hubei Province and made HGLaser and Raycus become the 3rd enterprise acknowledging the advanced technology after IPG and Rofin. What's more, Laser Processing National Project Research Center, co-built by HGTech and HUST, has become the connection between 'China Optic Valley' and 'International Science Industry'." The report concludes, "During the next phrase of work, all the members will make great breakthrough in the key technology area, integrate all resources to promote laser industry and will form industrial cluster in laser industry."

Indeed, a laser cluster has also been formed. In a news story at http://ftec.wenzhou.gov.cn/zsyz/files/en/index4-6-1.html, "The 'China (Wenzhou-based) Laser and Optoelectronic Industry Cluster' is among the first 41 objects for building and nurturing the national innovative industry cluster approved by the Ministry of Science and Technology (MOST) ... ". The report continues: "Laser and optoelectronic industry is a basic industry out of the seven major strategic emerging industries of our country. Despite its later start, Wenzhou has achieved a rapid growth with considerable foundation laid in industrial size, chain and cluster, enterprise development and innovation capabilities. By far, over 80 laser and optoelectronic enterprises including 21 high-tech ones that settle in Wenzhou have achieve an output of RMB 22.88 billion and an industrial chain featured by laser application, PV generation, LED lighting and optical communication takes shape. Output of  the cluster is predicted to break through RMB 100 billion [$16 billion dollars] in the forthcoming 5 years."

Wenzhou, the report continues, will lead off its focus on four major sectors including lasers, optoelectronic energy, semiconductor lighting, and optical communication, and launch the construction of the Innovation Park for China Laser and Optoelectronic Technologies, of which the construction of the 5 km2 starting area in the Hi-tech Zone, the Economic and Technological Development and Oujiangkou New District will be first commenced to ensure development space and enhance independent innovation capacities of the cluster (see image below of proposed Oujiangkou Industry Cluster Park):

American and European laser manufacturers should be prepared to possibly see laser sales into China fall as these key NLIA and cluster initiatives are implemented and acted upon. And as I prepare to travel to "Laser World of Photonics China" in Shanghai in mid March 2013, I cannot wait to compare and contrast what I see to Photonics West and Laser Munich.

Spring photonics tradeshow fever

Nothing beats talking to a colleague or hearing from a renowned speaker for learning about developments or solving a problem--and the same goes for actually handling a product and asking questions of a product manager. Several upcoming tradeshows will enable the full range of photonics technologies and products to be discussed, analyzed, and handled.

OFC/NFOEC in Anaheim, CA (March 17-21), with 550 exhibitors) focuses on topics such as cloud and datacenter networking, software-defined networking (SDN), optical and wireless convergence, and 100G/400G developments. For Laser Focus World, my personal focus will be on silicon photonics (including the rump session on Tuesday evening that asks the question, Silicon photonics: disruptive technology or research curiosity?). There's also the OSA's Executive Forum on Monday, including a distinquished panel looking at the future of the optical components industry and asking whether it is driven by technology challenges or in need of a business model tune-up?

LASER World of Photonics China in Shanghai (March 19-21) again promises to deliver very useful insights into this critical but little-understood market. I attended last year, and this year senior editor Gail Overton will present an overview of the global laser markets at the co-located Eighth International Congress on laser processes and components.

SPIE Defense, Security + Sensing in Baltimore (April 29-May 3) will be the venue to see the best in related products and technologies--and to learn what impacts the ongoing US budget struggles may have on the defense markets. The keynote speech by DARPA director Arati Prabhakar should be very worthwhile attending.

The largest and most widely anticipated show will take place in Munich (May 13-16), where LASER World of Photonics will be celebrating its 40th anniversary and expecting 1100 exhibitors and 28,000 visitors. More on that shortly.

And finally, just before the Summer solstice, CLEO takes place in San Jose (June 9-14). There, the OSA and Laser Focus World will present their annual Innovation Awards for outstanding new products and services. Please submit your nominations as soon as possible!