Analysis of the current investment boom of LED industry

The development of a China, central government and local governments at all levels shall take various measures to promote the LED industry.

1, the central government mainly through the industrial development direction, demand subsidies, research and development support, standards and other means to lay the foundation for the development of the industry.

June 2003, Ministry of science and technology combined with a number of departments, industry and local government, the establishment of the national semiconductor lighting project coordination leading group in 2006 the "national long-term science and technology development plan (2006-2020)", "information industry" 11th Five-Year "," April 2009 "electronic information industry restructuring and revitalization plan" the LED industry as the focus of development, a number of departments related to technology research and development of LED industry to give special subsidies.

In December 2008, the Ministry of science and technology "ten city lights" plan, ten city, each city to promote the function of LED lighting lamp above 10 thousand, according to the Ministry of science and technology, LED lighting lighting increased than the traditional 30%-50% investment subsidies.

In October 2009, the national development and Reform Commission and other six ministries issued the "opinions" the development of semiconductor lighting industry, the development of Chinese LED industry to make arrangements, clearly put forward to the localization of the chip in 2015 reached more than 70%. LED industry standards for semiconductor lighting terminology, device testing methods, etc., also formally implemented in 2010.

2, the local government through subsidies and investment demand, R & D subsidies to attract investment, promote the transformation and upgrading of local industries.

In Anhui Sanan optoelectronics Wuhu LED project, a total investment of 6 billion yuan, the Wuhu municipal government will be 100 sets of production equipment to purchase a total of about 900 million yuan subsidy. Moreover, the Wuhu Municipal Committee of housing and urban construction will also purchase high-power LED street lamps from the company, a total of 600 million yuan in 2010, in 2011 and in 2012 each year to purchase $200 million.

An important reason for two, LED industry in the current industry is characteristic of the industry investment hot.

1, on the whole, the industry is still in short supply in the current stage, enterprises can obtain higher profits, so the expansion of investment is also a natural choice. An optoelectronic Tianjin project is expected after tax profit rate is as high as 20%.

2, China processing enterprises mainly engaged in the manufacture of LED, relatively speaking into the capital and the industry technical threshold is not high. It is estimated that the minimum amount of investment into the LED only 100 million yuan.

3, at present the whole industry in the early stages of development, has not formed the dominant enterprises, enterprises compete for industry leading impulse. Leading enterprises Sanan optoelectronics 2009 sales revenue of only 470 million yuan, other companies are likely to accelerate investment made by the leading position in the industry.

4, China government has always been to support large-scale leading enterprises policy preferences, these companies are more likely to get preferential policies and subsidies from the government, which objectively make the enterprise have the power to rapidly expand the scale.

5, high price is an important obstacle to the current industry needs to expand, expand the scale might reduce costs and boost demand.

Three, due to the development prospects of LED industry, China capital market to provide sufficient funds to support enterprises to increase investment.

1, 09 years, LED industry has favorable capital market, the main listed companies share prices rose sharply in price increase of 2.81-20.29 yuan; 1: Elec-Tech, Silan 3.35-14.85 yuan 9.55-89 yuan; Sanan Optoelectronics (estimated); and the Shanghai stock index rose from 1820 points to 3109 points.

In 2, launched a series of enterprise financing plan LED investment projects, capital market to give active support, financing smoothly in March this year and plans to raise 2 billion 980 million yuan, but the capital markets are relatively optimistic, the stock price increased by one, by 2009 just to purchase convertible into the LED industry's annual income of 09 LED Elec-Tech, but 170 million yuan also, the successful financing of 1 billion 560 million yuan for the construction of LED production base in Wuhu.