Is the government's subsidy to LED a blessing or a curse?

In recent years, Guangdong has actively introduced policies to support the development of the LED industry. It is at the forefront of supporting the development of the LED industry. For example, in the “Twelfth Five-Year Plan” period, the Guangdong Provincial Government invested 450 million yuan each year to establish a special fund for LED industry development; 2012 The "Guangdong Province's Implementation Plan for Promoting the Use of LED Lighting Products" released in May shows that the LED industry scale of Guangdong Province will reach 500 billion yuan at the end of the "Twelfth Five-Year Plan" period due to the government's strong subsidies.

Under the guidance of a series of policies, Guangdong Province introduced a number of plans to promote the use of LED lighting products to fully open the curtain of LED lighting applications. Many cities such as Foshan, Dongguan and Zhongshan have also actively responded to the provincial government's policies, introduced subsidy programs, and vigorously promoted the application of LED lighting products. Among them, Foshan Chancheng 15 million subsidy LED lighting products, Dongguan single project up to 10 million subsidies, Zhongshan LED to save electricity subsidies. However, Guangdong has become a nationwide LED lighting demonstration province, which has also affected the market's fair competition to a certain extent and brought severe production pressure.

Zhao Jinsong, Development Planning Office of the Guangdong Provincial Science and Technology Department, said in an interview with CCS that Guangdong's general practice in stimulating the LED industry is "promulgated by the provincial government for demonstration projects for lighting demonstrations to encourage and guide local governments at all levels to carry out public domain construction. The government spends financial funds to promote LED projects through the EMC model."

For the Guangdong Province's large-area LED subsidy policy, Shenzhen Semiconductor Industry Association Secretary-General Cai Jinjiang has his own opinions. He believes that "the advantage of Guangdong Province is to have a stable market mechanism, and government subsidies have become a double-edged sword, affecting the orderly market competition, so that many leading companies have lost the sharpness of the market." LED companies in Guangdong Province There are 4,000 to 5,000 homes and become "LED provinces without core competitiveness." He said: "Photovoltaic has not brought pressure to Guangdong Province, and the LED industry has brought severe production pressure in Guangdong Province."

For the LED subsidy policy, Honorary Chairman of the Shanghai Illuminating Society Zhang Haiyu clearly stated: "Government subsidies should not be for enterprises, but should be directly subsidized to the people."

For the Chinese government to subsidize LED leading enterprises, Zhu Xinping, Global President of China Microelectronics Equipment Corporation and General Manager of Greater China Group, believes that: “Government grants will not allow China LED to become internationalized, but will weaken the aggressiveness of the company and lead to an increase in unfavorable market competition. The government should cancel the subsidies given to MOCVD and LED."

For example, he said that Taiwan will design a high-tech industrial park specifically to train science and technology teams, and then sell the technology to enterprises or transfer companies instead of decentralizing funds to enterprises.