Policy of "illness" let LED crazy market enterprises seeking remedies

Not long ago, the world's second largest LED equipment giant Veeco CEO PeELer LED said, China industrial scale growth mainly benefited from the policy, and the government subsidies can be described as "a pair of illness".

Indeed, local government subsidies for LED enterprises are generous, some even reached an alarming level, hundreds of billions, tens of billions of dollars to pay for It is often seen. phenomenon. The generosity of the government first appeared in the upper reaches of the LED chip industry subsidies.

2010, the provinces and cities in response to the national LED development policy, has begun to provide subsidies for the purchase of MOCVD equipment. In accordance with the type and location of the different regions, each purchase of a MOCVD enterprise equipment, can be obtained from 8 million to RMB 12 million yuan of subsidies, some subsidies even more than the price of the equipment of 50%.

So drug, can not be described as fierce. However, the tonic is too fierce, also hurt the body, now LED industry appeared investment overheating, crazy symptoms caused by overcapacity, falling profits, really nieyibahan.

The policy of illness causes investment frenzy

With the introduction of policies to promote the development of LED lighting applications, is expected in 2015 China's LED lighting market size of nearly $100 billion. At present, over 1 billion Chinese incandescent lamp, lighting energy consumption accounted for the total electricity consumption of 1/6, with the "out incandescent roadmap" announced the implementation of a large lighting business, let all capital with hitherto unknown speed of fashion.

According to the national development and Reform Commission statistics show that China's LED lighting chip, package, application of industrial chain is 1: 9: 22, the upstream and midstream package of nearly 70 enterprises, more than 1000 enterprises, more than 3000 enterprises downstream applications. Currently downstream of the LED lighting applications, is the capital gathered, the spread of hot investment hot very quickly, and the extension to the downstream industry chain, the investment will become increasingly crazy.

In the middle of LED packaging industry, according to the world's largest LED integration and packaging equipment supplier ASM Pacific 2010 annual report disclosure, as of December 31, 2010, the annual turnover of HK $9 billion 515 million, compared with 2009 of the annual performance of HK $4 billion 732 million, jumped 101.1%, consolidated earnings increased 203.8% compared to 2009. Although the sales profit rate of 33.8%, net profit is 3 times in 2009, but the order is still unabated, small orders basically not available even if the customer must pay a deposit after eight months to a year before the goods can be provided.

Who is the ASM Pacific this kind of foreign enterprises to provide a large number of orders, is the country's mushrooming LED industrial clusters and industrial base. In Guangdong province the scale of the industry ranked first in the country for example, Huizhou CREE, BYD lighting and a number of investment of over 1 billion yuan in the project have been launched; OSRAM Germany, EPISTAR Taiwan, Li Zhou electronics have entered Guangdong; Konka, SKYWORTH, Han's laser and other listed companies in Mergers and acquisitions and other ways to increase their investment into LED industry; enterprise LED more Dongguan KingSun, Dongguan Fuhua, Fenghua hi tech scale ultra billion yuan.

Guangdong has initially formed a total size of over 50 billion yuan of LED industrial belt, which is sufficient to see the current investment LED crazy". Although China's LED lighting industry output value exceeded 150 billion yuan in 2010, compared with 2008 doubled, but since 2011, LED lighting industry has been in trouble, exposing a series of problems in the industry.

Investment frenzy caused overcapacity

High tech Industry Research Institute figures show that: from January to July this year, China's MOCVD equipment increased by more than 200 units, is expected in 2012 China's LED chip production capacity will be 10 times in 2010. At present, China's MOCVD equipment has reached 543 units, counted in the construction of the 96 projects, the total number will reach 1642 units.

Increase in the number of equipment, but one of the signs of excess capacity risk, while overcapacity in the material sector is more worrying. Domestic LED sapphire substrate, and now the annual production capacity has reached 6 million 850 thousand, in the construction of the project there are still 41, the investment amount of up to $12 billion 80 million. If the expansion is completed, the annual production capacity will rise to 101 million. And in 2011 the global demand for less than 50 million LED sapphire substrate, less than 10 million films, the trend of serious excess capacity has emerged.

Last year, the market is generally optimistic about the rapid development of LED lighting, resulting in excessive investment into the upper reaches of the LED industry, but also led to the shortage of talent in the industry, as well as structural overcapacity. In the first half of this year, the global LED lighting market performance is not as good as expected, according to the semi annual report of Listed Companies in China, most of the packaging enterprises in the middle reaches of the incremental increase without embarrassment.

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