12th Five-Year plan will debut subsidies to stimulate the LED industry quadrupled in five years

LED or will usher in new opportunities. Development and Reform Commission deputy director Xie Ji ring information secretary recently revealed that the Commission is organizing the preparation of semiconductor lighting industry in the "12th Five-Year" plan, is now working with relevant departments to consider LED into the "green lighting project", and during the year is expected to be part of the LED lead into the product, which means that the semiconductor lighting products will enjoy financial subsidies.

Analysts believe that if the LED products can be nominated for the green lighting project, financial subsidies from direct subsidies to manufacturers to subsidize consumer terminal, will help to open the terminal market, fundamentally ease the pressure of excess capacity chip. The Guangdong LED packaging production accounts for about 70% of the country, no doubt become the biggest beneficiary.

Local government will stop LED financial subsidies

The national development and Reform Commission deputy director of central information secretary Xie Ji day in Shanghai before the new international light source · introduce new energy lighting forum, the national development and Reform Commission is organizing the preparation of semiconductor lighting industry "12th Five-Year" planning. In order to meet the needs of the overall economy, energy conservation and emission reduction, in 12th Five-Year, the LED industry is expected to achieve the goal of quadrupling.

Xie Ji also said that the Commission is working with relevant departments to consider LED into the "green lighting project", and during the year is expected to be part of the LED products in included, this means that the semiconductor lighting products will enjoy financial subsidies.

It is worth mentioning that, with the Ministry of science and technology approved the establishment of seven semiconductor lighting industrial base are built, LED become the focus of the development of enterprises, China's LED industry output value from 2009 to 2010 grew 45%, the growth rate will be raised again in 2011, to 2015, China's LED market size is expected to reach 500 billion yuan. In the huge market potential, to grasp the initiative of LED upstream chip technology, the local government has begun to provide MOVCD equipment subsidies, direct subsidies to manufacturers of industrial subsidies from the form.

Yangzhou municipal government: for example, in the second half of 2009, according to the city for MOCVD equipment procurement, government subsidies can account for 40% to 70% of total procurement.

Related subsidies are expected to fall into the hands of consumers, which means that the government subsidies for equipment will gradually stop. Changjiang Securities analyst Chen Zhijian said.

He analyzed that, with the Yangzhou municipal government will be suspended for the new MOCVD equipment approved in July 2011, rumors of Guangdong Jiangmen MOCVD machine subsidy amount also will run out, will become the city to follow next, other local governments are still in wait-and-see state. For example, the Wuhu municipal government issued the "Wuhu Municipal People's Government Office issued on the promotion of circular" LED industry development policy that subsidy policy will end on December 31, 2012, but does not have a clear plan to stop.

Bad companies cut subsidies

Analysts believe that if the LED products can be shortlisted green lighting project, get financial subsidies, will help open the terminal market, a fundamental relief chip overcapacity pressure.

Investment advisor senior researcher He Zaihua latest research report pointed out that, at present, the development of China's LED lighting in full swing, the number of enterprises into the field of a straight line growth, resulting in extreme market confusion. First of all, the lopsided development of the industrial chain, the phenomenon of dislocation is more serious, the emergence of greater barriers to efficiency, investment, no output. Secondly, blind investment in downstream has greatly reduced the market profit margins, market competition is more intense, profit space is small, the price war for the development of emerging industries is extremely unfavorable, will weaken the high quality of the competitiveness of enterprises to a certain extent, and disturb the market competition order.

This time, the policy is not blowing off the equipment subsidies, although not landing, but the effect of overcapacity has been resolved.

By canyuan, LGD and the East Bay joint venture China lucidity photoelectric production is expected to officially in the second quarter, but due to the Jiangsu provincial government of Yangzhou for the equipment subsidy policy MOCVD will end on July 2011, Yang MOCVD can import plan has declared the new machine size will shrink, from the original 50 reduced to 37 taiwan. Careful introduction of lucidity equipment is a slow response to policy efforts, on the other hand, from the side to show the canyuan on China's LED market demand worries.

Guangdong LED national leading innovation

In recent years, the rapid development of China's LED industry. Has formed the Pearl River Delta, Yangtze River Delta, Jiangxi and Fujian, Beijing and Dalian, the four major industrial areas. After more than and 10 years of development, Guangdong has become an important production base and trade center of the LED lighting industry in Shenzhen, Guangzhou, Huizhou, Foshan, Dongguan and other places. Relevant statistical data from the science and Technology Department of Guangdong province shows: Guangdong LED packaging production accounts for about 70% of the country, accounting for about 50%.2010 of the world since July, the Guangdong provincial government announced the "Guangdong Provincial People's Government on accelerating the development of the LED industry a number of opinions (Draft)" proposed, Guangdong proposed subsidy arrangements for 3 consecutive years special funds for the province's LED lighting applications, the total amount of subsidies will reach 600 million yuan. July 2010 to June 2011, Guangdong will be approved in accordance with the price of 30% LED light subsidies, subsidies totaling about $300 million.

However, at present, Guangdong has more than 2 thousand and 600 LED lighting companies, but mainly concentrated in the middle and lower reaches of the industrial chain production, lack of technological innovation, leading enterprises have not yet formed, the majority of enterprises are not large.

China Merchants Securities analyst Zhang Liangyong said that once the government subsidies for bidding, LED lighting companies will be the first