Yangzhou termination of MOCVD subsidy effect

Yangzhou municipal government by the first of its kind, provides a MOCVD machine ten million yuan of policy financial subsidies. Yangzhou Municipal Government, especially different from other local governments subsidize the use of a tax-deductible way, but the cash payment method, the machine is in place 50% of the amount of subsidies, grants 30% during the trial production, mass production of the final stage of acceptance of 20% balance due. Formosa Epitaxy has attracted a photoelectric, Sapphire optical, really bright, Lung Yiu and a number of optical companies stationed in Yangzhou LED epitaxial wafers.

MOCVD financial subsidies will cease

Today, from about July is less than two hours, Yangzhou City, will cease production of the LED wafer MOCVD equipment purchase subsidies. Industry insiders, which local LED manufacturers is undoubtedly a bad news, up to 1000 yuan subsidy for each device the days are gone forever.

However, faced with such a huge financial subsidies termination of subsidized companies will soon face what kind of position? According to industry sources, due to most businesses in the pre-construction period, large-scale production has not yet released, so the loss of subsidies on corporate earnings worrying.

It is understood that, in 2009, Yangzhou City in order to encourage enterprises to accelerate the LED industry upstream R & D and industrialization of key technologies, bigger and stronger city's LED industry, for enterprises to buy up to international advanced level of the LED wafer production MOCVD equipment, to give financial capital grants. Subsidy standards, Yangzhou city and district levels for eligible financial blue-green MOCVD subsidies up to 1000 yuan / Taiwan, red, yellow, light MOCVD up to 800 yuan / Taiwan. This policy attracted a number of LED enterprises to invest elsewhere in the country followed suit, LED business everywhere. However, local governments have followed the case with incoming investment, excessive proliferation of investment in equipment to enhance the LED industry oversupply concerns.

China's central government has not only observed this phenomenon, the local government's financial resources will gradually be depleted, so Yangzhou has told various manufacturers MOCVD financial subsidies will be the end of July 2011, manufacturers must In July, before the machine moved to get subsidies. While other local governments are also considering to follow up them.

In fact, the LED industry, government subsidies is now important to ensure profitability. Once the government stopped providing financial assistance to current profitability, these LED business is difficult to respond effectively.

Insiders pointed out that the LED industry to a certain extent, rely on policies to promote the benefits of financial support which the highest, Yangzhou City, the share of large enterprises, financial subsidies, removal of subsidies will naturally have an impact on business.

At the same time, large amounts of capital into the LED industry, and some money into the LED industry, a large part of their own fancy LED industry prospects are not invested, but simply speculation, which is also the LED industry, there was a thrust of overheating pressures.

Subsidies to consumers to shift

For investment while the MOCVD equipment vendor on the termination of the huge subsidy policy is the trend, even if not stopped now, the Government under financial pressure and overheating of the LED industry trends in environmental conditions will be terminated under the influence of MOCVD equipment for the huge subsidies, this is only for time.

At the same time, subsidies to consumers related to the transfer of a government boost LED industry trends, while expanding domestic demand. According to sources at the Shanghai New International Lighting Forum • New Energy sources, some Chinese LED products are expected this year into the national green lighting project, and enjoy the financial subsidy.

Analysts believe that if the green LED lighting products can be nominated, receive financial subsidies, would help open the market, and effectively alleviate fear of excess chip capacity pressures.

Follower of fashion lighting companies

Veeco Greater China general manager Wang Keyang that government subsidies MOCVD equipment industry at the beginning of a strong medicine, but the next stage should be more development of LED lighting applications, end-user subsidies, the price of LED products to pull people to accept the extent to stimulate consumption. "Just 'Ten thousand ten cities' is not enough, if every family has one or two LED lights, this market will be infinitely significant."

Recognizing this trend, many lighting companies have been ahead of the layout. Notice the sun lighting 7 900 million fund-raising for LED and other energy-efficient lighting projects, and Epistar Corporation and Taiwan reached a strategic cooperation to protect the upstream chip supply. Hong Kong main board listed company with NVC Lighting Cree had also reached a similar strategic cooperation.

It is learned that, last November by the National Development and Reform Commission, Ministry of Housing and the Ministry of Transport jointly organized by the three ministries of semiconductor lighting demonstration projects short-listed products in the Beijing opening, including the sun lighting, NVC lighting, wave groups, including 28 companies short-listed. A successful company insiders said, "Although the bidding of the corporate brand is greater than actual earnings, but LED products to market quickly is a favorable signal."

According to the China Merchants Securities analyst Zhang Liangyong said that once the government subsidy tender, LED lighting business will be the first to benefit, including the sun lighting, country star power, Foshan lighting; and follow-up package and chip makers will also receive a cascade effect.