LED industry to deepen cooperation between the two sides how to make use of favorable policies to make capital decisions

With the rapid development of LED industry, the mainland and Taiwan LED enterprises to invest in the necessity of cooperation highlights: land owned shares of Taiwan enterprises in cooperation with Taiwan enterprises, technical advantage of Taiwan enterprises to enhance the competitiveness, and can learn from the science and technology management, Taiwan enterprise advanced marketing model to stimulate the vitality of Taiwan enterprises; and the mainland enterprises to set up a joint venture with to rely on land prices and channel advantages of the layout of the mainland market, if the mainland owned factories, can help, a good policy environment, and expand the scale of production capacity. Therefore, the two sides LED enterprises to expand investment cooperation, is a sensible strategy for each other is beneficial. From the LED industry development situation, if the two sides integrate their respective advantages (mainland manufacturing capability and potential huge market advantage, Taiwan development will have a huge advantage), ability and creativity, will have the opportunity with the United States, Japan and South Korea LED power match.

Cross-strait cooperation to expand investment should recognize the economic situation

It is reported that the cross-strait LED enterprise's strong cooperation in investment demand, cross-strait LED enterprise investment cooperation cases is increasing, such as an optoelectronic canyuan photoelectric shares, and become the largest shareholder of Taiwan canyuan photoelectric; some chip companies allied with the resumption of the whole plan and manufacturers, contact to negotiate with the mainland manufacturers, some of them with the mainland manufacturers the joint venture projects have been implemented. Not only that, these LED enterprises also speed up the pace of the establishment of a wholly-owned factory in mainland china. The industry is expected, the two sides will further expand the LED enterprise investment cooperation.

However, it should be noted that, due to some external uncontrollable factors, investment cooperation between the two sides of the LED companies will be affected by cross-strait economic and trade relations and their respective investment policies. In general, LED Taiwan enterprises, whether it is seeking capital cooperation with the mainland enterprises, or set up factories in mainland China, are subject to the support of the mainland policy, so LED Taiwan enterprises to invest in the total amount of land has been larger. The LED land prices or Taiwan enterprises to invest in shares of Taiwan LED industry, is still slowly advancing. Recently, Taiwan frequently release loose land information, will be conducive to investment cooperation between the two sides of the LED business, but it depends on whether these favorable policies implemented effectively. In short, the investment cooperation between the two sides of LED enterprises, not only to consider the demand from their own perspective, should also pay close attention to the change of cross-strait economic and trade relations and flexible use of cross-strait investment policies, so as to make appropriate and in line with their own interests maximization criterion of the capital decision.

Deregulation of land capital or benefit LED capital decisions should be potential

Survey shows that the mainland enterprises to invest in Taiwan is far lower than Taiwan enterprises to invest in land. The reason, with the Taiwan open range is too small, inadequate incentives, too strict about the permission threshold. Recently, the Taiwan authorities frequently release deregulation of land owned news, such as the planning of new open land owned Taiwan invested lighting component LED, and improve the equity limit for machinery and equipment and other five key manufacturing panels, semiconductors, machine tools, electronics and semiconductor manufacturing; the free economic demonstration zone, the program clearly stipulates "land and capital investment in manufacturing according to foreign industry, which does not limit the investment ratio". At that time, the industry of key land investment seven (liquid crystal panel, LED, solar cell, integrated circuit, semiconductor packaging and testing, metal cutting tools, electronic and semiconductor production equipment, etc.) will not break out of control, the shareholding ratio should be less than 50% "limit.

Analysis of the industry, LED land is expected to become the first step after the deregulation of land investment cap, the first wave of industrial capital into Taiwan. This urgent need to form an industry alliance on both sides of the LED companies, especially those who want to get through the shares of Taiwan enterprises in technology and rapid progress of the LED land companies, is undoubtedly exciting good news. Under this background, LED Taiwan enterprises canyuan and AUO group under the Ronda, respectively, and that the BOE panel maker, LED epitaxial three leading discussion in private stake matters news.

In good news, the two sides of the LED business is necessary to plan investment cooperation, but do not rush. Because when we are optimistic expectations of cross-strait LED enterprises will deepen investment cooperation at the same time, we should also see that the Taiwan authorities proposed deregulation of land owned, is in its current economic difficulties facing the development situation, put forward one prescription to solve economic problems, has not entered the implementation stage. Before the policy has not really implemented, all possible variables, if ignoring policy changes may impact, fear will make hard negotiations cooperation results cast to waste. Therefore, the two sides of the LED companies must always pay attention to the actual implementation of the policy of the Taiwan authorities to make the appropriate capital decisions.

Combined with their own investment needs flexible use of favorable policies

In order to improve the economic structure, but also to respond to the call for energy-saving emission reduction, at present all over the country are vigorously introducing LED and other strategic emerging industries. Due to the LED Taiwan enterprises have technical advantages, so in some places for the LED industry investment policy, attracting LED Taiwan enterprises investment is an important part of. LED attracts Taiwan enterprises investment success, some places will not only give common concessions (tax, rent free, etc.) will provide enough supporting services (established research and development platform, develop a reasonable talent introduction mechanism, the accumulation of the affiliated enterprise and industry), such as Dongguan in the Songshan Lake high tech Zone Planning nearly 6.8 square kilometers of the Taiwan high tech park, and is divided into three functional areas of advanced IT manufacturing and LED photoelectric area, large wafer and panel manufacturing, R & D and supporting area, can provide the "compound" LED services for Taiwan enterprises.