LED subsidies should be wary of investment thinking"

At Guangdong LED industry ranks first in the country, in the "12th Five-Year" period, Guangdong will continue to vigorously support the development of the LED industry. According to "the development plan of Guangdong province LED industry (2010~2015) draft", Guangdong Province, 2012 LED industry will reach 120 billion yuan, the formation of the annual output value of more than billion yuan of industrial clusters, foster the output value of 1 billion yuan more than 20 enterprises. By 2015, the scale of LED industry will exceed 300 billion yuan, the basic establishment of enterprises, market-oriented, with the combination of the innovation system, production base is built for the LED packaging center and the largest products.

This is a microcosm of the development of LED industry leap. In October 2009 the national development and Reform Commission issued a "semiconductor lighting energy industry development advice", the domestic enterprises and local governments to enter the upstream LED chip epitaxial film field greatly accelerated the pace of. A rough estimate, in the construction of the proposed LED upstream enterprise total investment has exceeded 50 billion yuan, and is expected to LED epitaxial wafer production capacity by the end of 2012, will be 10-15 times in 2009, 2011 China procurement share will increase from 12% in 2009 to 60%.

This "astonishing speed" are difficult to describe, largely around the competition for investment and continuous introduction of the subsidy policy is. At the end of 2008, the global financial crisis began to find a rare reason for the subsidy policies.

Some local government subsidies for the purchase LED upstream equipment up to 30%-70% on the surface, this is a win-win, the enterprise greatly reduces the cost of investment, the government is to complete the investment and the industrial upgrading. But in the civil market has yet to be started, the overall demand for LED lighting is not clear, the local government investment thinking this subsidy is likely to lead to excess capacity.

Chinese 30 years of reform and opening up economic achievements show that in many industries ultimately rely on the "invisible hand" to play a role, in this sense, LED lighting government subsidies should look for more appropriate way and rhythm.