President of Crystal Electronics: LED industry should not light subsidies downstream

This year LED industry develops very fast, everywhere in the LED lamp, LED screen and other projects, our Crystal Electronics is LED chip development, the core part belongs to the LED industry, in the face of such a situation if I should be happy, but the reality is so I'm not happy.

Others will feel very strange, now the policy is not to encourage the development of the LED industry? Many local governments have subsidies for the LED industry, the development of this industry is good, so the market will also be a big chip research and development. But I think that the current subsidy policy does not play a good role in guiding the development of core technology.

At present, government subsidies are often directly to the downstream production enterprises. The current situation of the development of LED industry in our country is that the core products of various manufacturers are basically imported. The original domestic chip price advantage, and the government subsidies for the production of enterprises, it is offset by the high cost of imported chips, the more subsidies downstream companies do not buy our own chips. What is more, some places in the government procurement, the use of imported chip products have extra points, which further reduces the possibility of domestic domestic chip factory.

Chip is the core of the LED industry, the chip has done this industry is promising, otherwise the profit of the chip manufacturers have been taken away, the Chinese only earn a processing fee, the truth is very simple. Otherwise, we will not even be able to make a good job of processing fees, because a lot of foreign LED chip manufacturers, such as CREE has begun to face the development of lighting terminals. After the domestic manufacturers will find out that they are in competition with their suppliers, the profits of the competition to the supplier. How can we compete with others?

Separation of an industry in the middle and lower reaches, downstream production enterprises to get more subsidies, often detrimental to the development of upstream enterprises. Our subsidies should be added to the core links, such as R & D. The government should protect the development of its core technology through the development of certification standards.