LED overcapacity in the upper reaches of the local government performance game is pushing hands

Misfortune, the blessing of the hill: the financial tsunami, actively support the semiconductor lighting industry suffered at all levels of government

China semiconductor lighting industry in the continuous efforts, increasing the scale of the industry. The great potential of semiconductor lighting has gradually entered into the vision of government policy makers at all levels.

The application of the market but the rapid growth of the scale of the main downstream from the growth of semiconductor lighting industry in the upper reaches of the Chinese lack of core technology and competitiveness of enterprises is an indisputable fact, so the rate of domestic key upstream raw materials, has become the government industry policy goal. Since 2008 by the GSEs and the collapse of Lehman brothers started by the global financial crisis, the semiconductor lighting industry China, terminal demand mainly from Europe and the United States market, faced an unprecedented crisis, LED lighting enterprises downstream foreign trade, enterprises have the display business crisis, several months of order less than the level of half of last year.

By 2009, in order to cope with the crisis China government introduced 4 trillion economic stimulus policies, governments at all levels have hitherto unknown loose budget environment. Therefore the policy of industrial development with strong demand plenty of local government financial supply, hit it off, less than 1 years, a number of local government introduced the LED industry subsidy policy, LED suddenly become many waiting for rescue in the lucky industry. The key equipment of MOCVD machine however the subsidies mainly concentrated in the upstream, after nourishing but also for the future of the industry's excess undoing. And Wuhu and Yangzhou, is undoubtedly the most active wave of this wave of subsidies.

Financial subsidies contributed to Wuhu LED growth pole shape

In Anhui city of Wuhu Province in August 14, 2010 officially released "on promoting the development of a number of policy" LED industry, in this document, clear enterprise purchase LED wafer production reached the international advanced level of MOCVD equipment more than 50 sets, and the chip and package, application product development and manufacturing and other related industries are the production of investment in Wuhu. In accordance with the blue and green MOCVD equipment (limited to 55 machine and above) for each maximum not more than 12 million yuan, the red and yellow light MOCVD equipment (limited to 55 machine and above) each does not exceed the maximum 9 million 600 thousand yuan, to give a one-time subsidies to support research and development.

Under Wuhu municipal government policy incentives, and Elec-Tech Sanan optoelectronics two giants, are spending a large sum of money, Sanan Optoelectronics in Wuhu to set up a wholly owned subsidiary of Anhui Sanan optoelectronics Co. Ltd. purchased 104 sets, and Elec-Tech joint venture three / 50 sets of semiconductor. Two years later, it seems, Wuhu has been completely unrelated to the central city of LED and the rise of the LED chip growth pole, the city's MOCVD machine has been living in China's first. Wuhu also occupies an important position in the layout of the two giants production base.

[table 1] the number of MOCVD installed capacity and the proportion of total production capacity in Wuhu

Data source: LEDinside

In several giant led investment in Wuhu Anhui Kang blue Au Optronics Co, related enterprises in Anhui, such as photoelectric technology LED downstream Furao, so have the opportunity to form an important LED industry cluster.

The development of double Yangzhou billion industry plan, the long-term layout LED

Yangzhou has always been a bustling city, but modern transport into the sea after the economic status gradually decreased. In the economically developed cities in Jiangsu Province, in the Soviet Union in Yangzhou, the economic status of the city gradually by the distance between South of Jiangsu. In 2010 the city of Jiangsu Province in the GDP rankings, Yangzhou is only eighth. And the potential of new energy sources, new light source industry to flourish, has also become an opportunity for Yangzhou's economic catch-up strategy, so Yangzhou has developed a new energy and new light source double billion industry development plan.

[table 2] in 2010 Jiangsu city level GDP

Source: Jiangsu statistical yearbook, 2010

But a new development of the semiconductor lighting industry and no natural resources city, the intention to attract the first-class enterprises, alternative methods are not many, so do the same with the Wuhu municipal government, Yangzhou is also offering high subsidies magic temptation. In early August 6, 2009, the Yangzhou municipal government issued a "scientific and technological development of innovative economic incentive policies to support the implementation of the relevant rules", the "LED wafer production equipment with MOCVD purchase subsidy funds management implementation details" clearly show that the device with the MOCVD of LED wafer production enterprises purchase reached the international advanced level, to give financial subsidies "and the provisions of the conditions of subsidies and subsidies:

[table 3] Yangzhou municipal government MOCVD subsidies and subsidies

Source: Yangzhou municipal government, LEDinside finishing

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