[High- tech LED reporter Zhao Hui] No industry like LED has carried the dual dream of local government GDP and environmental protection. Naturally, the LED industry is also a favorite of thousands. In particular, the epitaxial chip companies with the highest technical threshold and the largest investment have been favored by local governments and given huge subsidies.
According to statistics from the High-tech LED Industry Research Institute (GLII), in 2009, domestic LED epitaxial chip companies had only 130 MOCVDs, and by the end of 2013, this number had grown to 1017 units, an increase of nearly 8 times. The number of machines is 887.
The five years of the fastest growth are precisely the five years that local governments have begun to give MOCVD huge subsidies.
Most of the 887 new MOCVDs have received subsidies ranging from 8 million yuan to 10 million yuan from the local government. Initially, the subsidies for MOCVD are estimated to be as high as 8 billion yuan. Coupled with the government's three subsidies for science and technology, technology reform funds, and the accompanying lighting application municipal contracts, etc., the total amount can reach tens of billions of yuan.
In this round of expansion, the government is undoubtedly the biggest driver, especially in Yangzhou and Wuhu. Yangzhou was the first place to offer huge subsidies to MOCVD.
In that year, the relevant media reported that the local government of Yangzhou had calculated such an economic account: Although a MOCVD subsidy of 10 million yuan, after the project is put into production, it can directly form an annual output value of 20 million yuan and drive the relevant industrial chain to form an output value of 200 million yuan. 100 machines can form an industrial group of 20 billion yuan around the epitaxial wafer.
And Wuhu is proud of the two chip giants led by Sanan Optoelectronics and Dehao Runda. At that time, Wuhu City once said that supporting LEDs is aimed at the long-term. It is worthwhile to promote the development of the entire LED industry in Wuhu through subsidies from two leading companies. The pond can naturally raise fish.
In 2010, the demand for backlights was soaring, and LED chips were in short supply. According to a person in charge of a chip company, as long as it can be produced, regardless of the quality, it can sell a good price.
The demand for chips is in short supply, coupled with the strong support of local governments. A dry LED epitaxial chip listed company has sufficient financing channels, and naturally expands its production.
According to the "Several Policies on Promoting the Development of LED Industry" issued by the Wuhu Municipal Government, the company has purchased more than 50 MOCVD equipment for LED epitaxial wafer production at the international advanced level, and related industries such as chip and packaging, application product development and manufacturing are in Wuhu. Investing in production, according to the blue-green MOCVD equipment (limited to 55 machines and above) each up to 12 million yuan, red and yellow MOCVD equipment (limited to 55 machines and above) each up to a maximum of 9.6 million yuan, Give one-time research and development subsidy support.
At the same time, Wuhu City also gave a street lamp municipal order. Wuhu City began to gradually promote the application of LED street lights in 2009. Since 2011, the Wuhu Municipal Government has required LED products for all lighting projects and new roads. These big orders basically fall into the corporate pockets of Sanan and Dehao Runda.
The consequences of a large number of expansions soon appeared. Since 2011, LED chip production capacity has begun to overflow and prices have fallen. A group of chip-listed companies are protected from losses by relying on government subsidies.
According to GLII statistics, in 2012, the domestic MOCVD capacity utilization rate was only about 30%, and the operating rate was only about 50%. Even in the case of booming industrial demand in 2013, MOCVD capacity utilization has only increased to 52%. And the price of the chip has also maintained a rapid decline in the price of more than 30% per year.
The LED industry aggregation effect that local governments hope has not been realized. Once the subsidy is cancelled, the company will immediately replace the expansion base. Just as the Sanan Optoelectronics moved the second phase of the project from Wuhu to Xiamen, it was because the subsidy policy of Wuhu stopped.
Subsidies have contributed to the development of the LED industry, but the facts also prove that subsidies have also led to the emergence of many industrial chaos, distorting the development of the industry itself.
According to statistics from the High-tech LED Industry Research Institute (GLII), in 2009, domestic LED epitaxial chip companies had only 130 MOCVDs, and by the end of 2013, this number had grown to 1017 units, an increase of nearly 8 times. The number of machines is 887.
The five years of the fastest growth are precisely the five years that local governments have begun to give MOCVD huge subsidies.
Most of the 887 new MOCVDs have received subsidies ranging from 8 million yuan to 10 million yuan from the local government. Initially, the subsidies for MOCVD are estimated to be as high as 8 billion yuan. Coupled with the government's three subsidies for science and technology, technology reform funds, and the accompanying lighting application municipal contracts, etc., the total amount can reach tens of billions of yuan.
In this round of expansion, the government is undoubtedly the biggest driver, especially in Yangzhou and Wuhu. Yangzhou was the first place to offer huge subsidies to MOCVD.
In that year, the relevant media reported that the local government of Yangzhou had calculated such an economic account: Although a MOCVD subsidy of 10 million yuan, after the project is put into production, it can directly form an annual output value of 20 million yuan and drive the relevant industrial chain to form an output value of 200 million yuan. 100 machines can form an industrial group of 20 billion yuan around the epitaxial wafer.
And Wuhu is proud of the two chip giants led by Sanan Optoelectronics and Dehao Runda. At that time, Wuhu City once said that supporting LEDs is aimed at the long-term. It is worthwhile to promote the development of the entire LED industry in Wuhu through subsidies from two leading companies. The pond can naturally raise fish.
In 2010, the demand for backlights was soaring, and LED chips were in short supply. According to a person in charge of a chip company, as long as it can be produced, regardless of the quality, it can sell a good price.
The demand for chips is in short supply, coupled with the strong support of local governments. A dry LED epitaxial chip listed company has sufficient financing channels, and naturally expands its production.
According to the "Several Policies on Promoting the Development of LED Industry" issued by the Wuhu Municipal Government, the company has purchased more than 50 MOCVD equipment for LED epitaxial wafer production at the international advanced level, and related industries such as chip and packaging, application product development and manufacturing are in Wuhu. Investing in production, according to the blue-green MOCVD equipment (limited to 55 machines and above) each up to 12 million yuan, red and yellow MOCVD equipment (limited to 55 machines and above) each up to a maximum of 9.6 million yuan, Give one-time research and development subsidy support.
At the same time, Wuhu City also gave a street lamp municipal order. Wuhu City began to gradually promote the application of LED street lights in 2009. Since 2011, the Wuhu Municipal Government has required LED products for all lighting projects and new roads. These big orders basically fall into the corporate pockets of Sanan and Dehao Runda.
The consequences of a large number of expansions soon appeared. Since 2011, LED chip production capacity has begun to overflow and prices have fallen. A group of chip-listed companies are protected from losses by relying on government subsidies.
According to GLII statistics, in 2012, the domestic MOCVD capacity utilization rate was only about 30%, and the operating rate was only about 50%. Even in the case of booming industrial demand in 2013, MOCVD capacity utilization has only increased to 52%. And the price of the chip has also maintained a rapid decline in the price of more than 30% per year.
The LED industry aggregation effect that local governments hope has not been realized. Once the subsidy is cancelled, the company will immediately replace the expansion base. Just as the Sanan Optoelectronics moved the second phase of the project from Wuhu to Xiamen, it was because the subsidy policy of Wuhu stopped.
Subsidies have contributed to the development of the LED industry, but the facts also prove that subsidies have also led to the emergence of many industrial chaos, distorting the development of the industry itself.
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