2010 Review of China's LED industry

Recalling 2010, China LED industry has great development and progress. Whether in government policy support for the LED industry, or on the progress of LED technology. All have left a deep impression. Here in 2010 the Chinese LED industry to do some review that in 2010, during which progress in the LED industry, bits and pieces left!

Upstream areas: the layout of domestic enterprises to actively upstream, triggering concerns of overcapacity

In the LED industry in 2010, I am afraid most mentioned belong to MOCVD, and in 2010, Chinese enterprises investment in upstream areas of LED can be said to spend lots of money. Year due to tight supply of LED chips in the MOCVD market triggered war lasted almost to the end. March 2010 to 20 billion yuan 12.0 billion of total assets to stir up industrial projects in Wuhu three photoelectric photoelectric safety, began to raise funds through private placement for the introduction of 100 MOCVD equipment. Following April, the three safety photoelectric board passed a resolution to the United States Veeco Precision Instrument Co., Ltd. (Veeco) Order MOCVD LED production equipment up to 40 units, and to ensure delivery during the year 2010, the two sides agreed to install. Meanwhile, in the MOCVD equipment, Wuhu, Anhui Province is also given to the introduction of a great deal of financial support, in accordance with the Wuhu municipal government signed the "three-safety optoelectronics optoelectronics industry of Wuhu Investment Cooperation Agreement", December 17, 2010 Anhui government grant received three safety devices which the progress of subsidies of 15 and 10 devices total of 125.52 million yuan deposit subsidy payments.

Into July, BDO Runda's announcement shows that BDO Runda want to purchase 130 MOCVD equipment, and delivery before the end of 2011. The equipment purchases will be established in Wuhu and Yangzhou new LED wafer production capacity will further improve the BDO Runda's LED industry chain, BDO Runda for the LED industry, production and operation of the follow-up to lay a solid foundation, Yangzhou City, the same introduced in the MOCVD equipment, given the large amount of money to support, it is understood, the introduction of local enterprises in Yangzhou city of MOCVD equipment to 800-1000 million in subsidies each. Even the minimum standards according to 800 yuan / table estimates, the BDO Runda subsidies of more than 10 billion yuan. BDO Runda said the equipment purchase contract will be signed after the entry into force and pay the deposit to the city of Wuhu City and Yangzhou MOCVD equipment for applying for relevant subsidies.

According to DRAMeXchange (TRENDORCE) LEDinside's research department recently published the "2010 China Industry Analysis Report LED chip companies," pointed out that China plans to increase in the coming years the MOCVD LED devices with more than 1,200 units, of which this year plans to increase the number of MOCVD more than 300 units.

With the significant increase in MOCVD equipment, LED industry overcapacity on the LED popular in the industry point of view the beginning, causing the industry overcapacity on the LED thinking and analysis. MOCVD equipment for both the Government subsidies are slowly changing.

December 2010, according to Sun Xiaojun, Yangzhou, China Merchants said the Financial Secretary has subsidy policy can not continue indefinitely, Yangzhou City, the financial subsidies will come to an end in July 2011, most local governments are also watching the need for follow-up. MOCVD equipment investment over the proliferation of LED industry has deepened concerns of oversupply. China's central government has not only observed this phenomenon, the local government's financial resources will gradually be depleted, so each manufacturer has informed Yangzhou MOCVD financial subsidies will be the end of July 2011, manufacturers must before in July to get the machine into subsidies. While other local governments also are considering following them.

The LED for the upper reaches of the layout of domestic enterprises, and now we can not see the actual effect, however, launched with the MOCVD equipment on the road, I believe that 2010 domestic enterprises in China and MOCVD equipment layout on the impact of the global LED industry will be slow in 2011 embodiment, let us wait and see!

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