Since 2009, large-scale LED construction projects have been introduced in various places, and huge subsidies for major equipment such as MOCVD have been made. This year, this trend will turn - the government's subsidies for equipment will gradually stop, and the relevant subsidies are expected to fall into the hands of consumers.
The reporter learned from the Shanghai International New Light Source·New Energy Lighting Forum held yesterday that some LED products are expected to be included in the national green lighting project this year and enjoy financial subsidies.
Multiple policies stimulate industry development
According to Xie Ji, deputy director of the Department of Environmental Protection of the National Development and Reform Commission, the National Development and Reform Commission is currently organizing the 12th Five-Year Plan for the semiconductor lighting industry. It is reported that among the seven strategic emerging industries identified by the country a few days ago, energy conservation and environmental protection rank first. Xie said that the LED industry will be an important part of the energy conservation and environmental protection industry planning. During the “Twelfth Five-Year Plan†period, the LED industry is expected to achieve the goal of quadrupling and achieve rapid development; it will play an important role in energy conservation and emission reduction in the “Twelfth Five-Year Planâ€.
Xie Ji also revealed that the National Development and Reform Commission is working with relevant departments to consider the inclusion of LEDs in the “Green Lighting Project†and is expected to include some LED products in the first year, which means that semiconductor lighting products will enjoy financial subsidies.
It is reported that the "China Green Lighting Project" is proposed for "developing and promoting efficient lighting fixtures and gradually replacing traditional low-efficiency lighting electric light sources"; during the "Eleventh Five-Year Plan" period, China has already adopted financial subsidies to accelerate efficient lighting products. Promotion and use; since 2008, the promotion of financial subsidies for efficient lighting products has officially started.
LED industry accelerates expansion
From the end of 2009 to the present, the LED industry has entered an accelerated expansion period under the dual incentives of market demand and government subsidies. In order to establish LED industry bases in various inland cities including Yangzhou and Wuhu, LED manufacturers, especially upstream epitaxial chip manufacturers, are encouraged to settle in. The subsidy for each MOCVD equipment is 800-1000 million yuan, which accounts for about 40% of the price of each equipment. The domestic LED chips manufacturers such as Sanan Optoelectronics, Silan Micro and Ganzhao Optoelectronics have increased their investment in chip production lines. .
According to statistics from the High-tech LED Industry Research Institute (GLII), the total investment in China's LED industry contracted plans in 2010 was 217.885 billion yuan, a year-on-year increase of 248.6%. In the quarterly report of Sanan Optoelectronics and Guoxing Optoelectronics, the government subsidies included in the current profit and loss accounted for 78.55% and 23.54% of the company's net profit for the same period.
John Piller, CEO of Veeco Instruments Inc., the top three LED equipment provider, said in an interview on the 10th that nearly 30% of Veeco's total revenue in 2010 came from the Chinese market. In 2011, total revenue will exceed $1 billion, while local Chinese companies will contribute more than 50%. According to reports, the Vecco China Training Center was officially opened in Shanghai on the 10th, with the aim of providing follow-up talent support for the huge MOCVD procurement companies.
Lighting companies take the lead
Analysts believe that if LED products can be short-listed for green lighting projects, financial subsidies will help open the terminal market and fundamentally alleviate the pressure of overcapacity.
Wang Keyang, general manager of Veeco Greater China, pointed out that the government subsidizes MOCVD equipment as a strong drug at the beginning of the industry development, but in the next stage, it should develop more LED lighting applications, subsidize end users, and bring the price of LED products to the people's acceptance. To stimulate consumption. “It’s not enough to be a “ten cityâ€. If every family can have one or two LED lights, this market will be infinite.â€
Aware of this trend, many lighting companies have already laid out in advance. Sunshine Lighting announced on the 7th that it raised 900 million yuan for energy-saving lighting projects such as LEDs, and reached a strategic cooperation with Taiwan Jingyuan Optoelectronics Co., Ltd. to ensure the supply of upstream chips. NVC, a listed company in Hong Kong, had previously reached a similar strategic cooperation with Career.
The reporter learned that in November last year, the semiconductor lighting products application demonstration project jointly organized by the National Development and Reform Commission, the Ministry of Housing and Urban-Rural Development and the Ministry of Transport and the Ministry of Transportation was selected for the opening of the products in Beijing, including Sunlight, Yuanhui Optoelectronics and Inspur Group. Home business is shortlisted. "Although the bidding effect on the brand of the company is greater than the actual income, it is a favorable signal for the LED products to enter the market quickly." An insider of a winning bidder told reporters.
Zhang Liangyong, an analyst at China Merchants Securities, said that once the government subsidizes the bidding, LED lighting companies will benefit first, including Sunlight, National Star, Lehman Optoelectronics, etc.; and subsequent packaging and chip manufacturers will also receive a joint effect.
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