Yangzhou termination of MOCVD subsidy effect lighting companies ahead of the layout of new markets

First launched by the Yangzhou municipal government MOCVD subsidy policy, China for other local governments caused by follow up effect, resulting in the whole Chinese set off a wave of investment boom LED epitaxial plant. At the end of last year, Sun Xiaojun, director of China Merchants Bank, said that Yangzhou's fiscal subsidy policy could not be sustained indefinitely, Yangzhou's fiscal subsidy policy will come to an end in July 2011.

By the Yangzhou municipal government, the first to provide a MOCVD platform ten million yuan subsidy policy. Especially in other local governments use tax subsidies in different ways of Yangzhou municipal government, but by the cash payment, the machine in place after the 50% of the amount of subsidies, subsidies of 30% during the trial period, the testing phase of mass production to provide the last 20% retainage. It attracts canyuan photoelectric photoelectric, Blaupunkt, neon, Longyao photoelectric and many other LED wafer manufacturers in Yangzhou.

MOCVD financial subsidies will stop

Today, less than two years from about July, Yangzhou will stop the purchase of LED epitaxial film production equipment with MOCVD subsidy funds. Analysis of the industry, which is the local LED production companies, is undoubtedly a bad news, the maximum subsidy of 10 million yuan per device has gone forever.

However, in the face of such a huge financial subsidies to the termination of the policy, the subsidies will be faced with what kind of situation? According to industry sources, due to the current majority of enterprises in the early construction period, the production capacity has not yet been released, therefore, the loss of subsidies after the company's profitability worrying.

It is understood that in 2009, Yangzhou city to encourage enterprises to accelerate the LED industry upstream key technology development and industrialization, bigger and stronger the LED industry, the company purchased LED wafer production reached the international advanced level of MOCVD equipment, give property subsidies. Subsidy standards, Yangzhou City, district level two of eligible blue and green MOCVD subsidy funds up to $10 million / Taiwan, red yellow light MOCVD up to 8 million yuan / taiwan. This policy has attracted a large number of LED companies to invest in other parts of the country have followed, LED companies everywhere. However, in the local governments have followed suit to the investment situation, from the overflow of equipment investment to deepen the LED industry concerns pile up in excess of requirement.

The central government has not only China observe this phenomenon, the local government financial resources will gradually be depleted, so Yangzhou has informed the various manufacturers of MOCVD financial subsidy policy will end on July 2011, manufacturers must before July will be moved into the machine to get subsidies. At the same time, other local governments are also considering follow-up.

In fact, for the LED industry, the current government subsidies is an important guarantee for the enterprise profit. Once the government stopped providing financial assistance to the current profitability, these LED companies are difficult to effectively respond.

Insiders pointed out that the current LED industry to a certain extent, rely on policies to promote the financial support of the highest efficiency, Yangzhou City, the financial subsidies for enterprises share, cancel the subsidy will have an impact on enterprise.

At the same time, large amounts of capital into the LED industry, some funds into the LED industry, a considerable part of his not fancy LED industry prospects to invest, but pure speculation, which is the LED industry overheating pressures has a thrust.

Subsidies to consumers

In order to attract foreign investment and the termination of the MOCVD equipment manufacturers a huge subsidies policy is to represent the general trend, even if it does not stop, the government is affected by the financial pressure and LED industry environment in case of overheating trend will terminate on the MOCVD equipment of huge subsidies, it is time.

At the same time, the transfer of related subsidies to consumers has become the trend of the government to boost the development of LED industry, but also to expand domestic demand. According to the Shanghai international new light sources, new energy lighting forum news shows that some Chinese LED products are expected to be included in this year's national green lighting projects, and enjoy financial subsidies.

Analysts believe that if the LED products can be shortlisted green lighting project, get financial subsidies, will help open the consumer market, and effectively alleviate the excess pressure on chip production overcapacity.

Fashion lighting enterprises

Viiko of general manager of Greater China Wang Keyang pointed out that government subsidies MOCVD equipment is a strong medicine industry development at the beginning, but the next stage should be more than the development of LED lighting applications, subsidies for end users, LED will pull to the people to accept the price, to stimulate consumption. "Light is' Ten City million 'is not enough, if each family can have one or two LED lights, the market will be very considerable. "

Aware of this trend, many lighting companies have been ahead of the layout. Yankon 7 days notice for fund-raising 900 million LED energy-saving lighting project, and reached a strategic cooperation with Taiwan Jingyuan Au Optronics Co, the upstream chip supply security. The Hongkong listed company NVC had also reached a strategic cooperation with CREE similar.

It is understood that, in November last year, the national development and Reform Commission, the Ministry of housing and the Ministry of transport of three ministries jointly organized by the semiconductor lighting product application demonstration project finalists opening in Beijing, 28 enterprises including Yankon, NVC, the wave of the group including finalists. A successful enterprise insiders said, although the tender effect on the enterprise's brand is greater than the actual revenue, but the rapid entry of LED products is a favorable signal. "

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