Not long ago, PeELer, CEO of Veeco, the world's second-largest LED equipment giant, said that the growth of China's LED industry was mainly due to policies, and the government's "subsidy" could be described as "a fierce drug."
Indeed, local governments have generously subsidized various subsidies for LED companies, and some have even reached alarming levels. It is not uncommon for billions of dollars and tens of billions of bills to be paid. The government's generosity is first manifested in subsidies to the LED upstream chip industry.
In 2010, all provinces and municipalities responded to the national LED development policy and began to provide subsidies for enterprises to purchase MOCVD equipment. Depending on the type of aircraft and the region, each company can receive a subsidy ranging from RMB 8 million to RMB 12 million for each purchase of MOCVD equipment. Some subsidies even exceed 50% of the equipment price.
Such "drugs" can not be said to be fierce. However, the tonic is too fierce, and it hurts the body. The LED industry now has symptoms of overheated investment and almost madness. As a result, overcapacity and falling profits have caused people to sweat.
Policy fierce drugs trigger investment frenzy
With the introduction of national policies to promote the development of LED lighting applications, it is estimated that the scale of China's LED lighting market will reach nearly 100 billion US dollars in 2015. At present, China's incandescent lamps exceed 1 billion baht, and lighting energy consumption accounts for about 1/6 of the total electricity consumption. With the announcement of the “elimination of the incandescent roadmapâ€, a huge lighting business opportunity has made the capital of all the way unprecedented. The wind is moving.
According to the statistics of the National Development and Reform Commission, the ratio of China's LED lighting chip, packaging and application industry chain is 1:9:22, including nearly 70 upstream enterprises, more than 1,000 mid-stream packaging enterprises, and more than 3,000 downstream application enterprises. At present, the downstream LED lighting application field is already a gathering of capital. The spread of hot investment is very rapid, and the more it extends to the downstream of the industrial chain, the more crazy the investment becomes.
In the midstream packaging industry of LEDs, according to ASM Pacific's 2010 annual report, the world's largest supplier of LED integration and packaging equipment, as of December 31, 2010, the annual turnover reached 9.515 billion Hong Kong dollars, compared with 2009's 4.732 billion Hong Kong dollars. The performance surged by 101.1%, and the overall profit increased by 203.8% compared with 2009. Although the sales profit rate is as high as 33.8% and the net profit is three times that of 2009, the orders are still increasing. The small orders are basically out of stock, even if the big customers have to pay the deposit eight months to one year later. Goods can be mentioned.
Who provided a large number of orders for foreign companies such as ASM Pacific? It is an LED industry cluster and industrial base that has sprung up all over the country. For example, in Guangdong Province, where the industry scale ranks first in the country, Huizhou Cree, BYD Lighting and other projects with an investment of over RMB 1 billion have been launched; Germany Osram, Taiwan Jingyuan Optoelectronics, Li Zhou Electronics, etc. have entered Guangdong; Konka Listed companies such as Skyworth and Dazu Laser also entered the LED industry by means of mergers and acquisitions, capital increase and share expansion, etc.; there are LED backbone enterprises with a scale of over RMB 100 million, such as Dongguan Qinshang, Dongguan Fuhua and Fenghua Hi-Tech.
Guangdong has initially formed a LED industry belt with a total scale of over RMB 50 billion, which is enough to see the “crazy†of investing in LEDs. Although the output value of China's LED lighting industry exceeded RMB 150 billion in 2010, compared with that in 2008, the LED lighting industry has been in trouble since 2011, exposing a series of problems in the industry.
Investment frenzy triggers overcapacity
According to the figures of the Higher Industrial Research Institute, from January to July this year, China's MOCVD equipment increased by more than 200 units. It is expected that China's LED chip production capacity will be 10 times that of 2010 in 2010. At present, China's MOCVD equipment has reached 543, counting 96 projects under construction, the total number will reach 1,642.
The large increase in the number of equipment is only one of the signs of overcapacity risks, and overcapacity in the material sector is even more worrying. The domestic LED sapphire substrate has an annual production capacity of 6.85 million pieces and 41 projects under construction, with an investment of 12.08 billion yuan. If the expansion is completed, the annual production capacity will rise to 101 million pieces. In 2011, the global demand for LED sapphire substrates was less than 50 million pieces, and there were less than 10 million pieces in China. The trend of severe overcapacity has already appeared.
Last year, the market was generally too optimistic about the rapid development of LED lighting, resulting in excessive investment into the upstream of the LED industry, which also led to shortage of talent in the industry and structural overcapacity. In the first half of this year, the global LED lighting market performance was not as good as expected. According to the semi-annual report of domestic listed companies, most of the mid-stream packaging companies are facing an increase in revenue.
At present, in the LED industry, the overcapacity of the upstream sapphire substrate is the most serious. Although the capacity of the midstream packaging industry is relatively surplus, because of the worst anti-risk capability, it is expected that nearly 10% of enterprises will be eliminated by the end of the year, while the overall downstream LED application is eliminated. Best performance.
Overcapacity has become the soft underbelly of the LED industry. The LED investment planning and projects under construction that have been competing in the past two years have far exceeded the actual demand of the market, and the passion for blind expansion of production capacity is still burning.
Indeed, local governments have generously subsidized various subsidies for LED companies, and some have even reached alarming levels. It is not uncommon for billions of dollars and tens of billions of bills to be paid. The government's generosity is first manifested in subsidies to the LED upstream chip industry.
In 2010, all provinces and municipalities responded to the national LED development policy and began to provide subsidies for enterprises to purchase MOCVD equipment. Depending on the type of aircraft and the region, each company can receive a subsidy ranging from RMB 8 million to RMB 12 million for each purchase of MOCVD equipment. Some subsidies even exceed 50% of the equipment price.
Such "drugs" can not be said to be fierce. However, the tonic is too fierce, and it hurts the body. The LED industry now has symptoms of overheated investment and almost madness. As a result, overcapacity and falling profits have caused people to sweat.
Policy fierce drugs trigger investment frenzy
With the introduction of national policies to promote the development of LED lighting applications, it is estimated that the scale of China's LED lighting market will reach nearly 100 billion US dollars in 2015. At present, China's incandescent lamps exceed 1 billion baht, and lighting energy consumption accounts for about 1/6 of the total electricity consumption. With the announcement of the “elimination of the incandescent roadmapâ€, a huge lighting business opportunity has made the capital of all the way unprecedented. The wind is moving.
According to the statistics of the National Development and Reform Commission, the ratio of China's LED lighting chip, packaging and application industry chain is 1:9:22, including nearly 70 upstream enterprises, more than 1,000 mid-stream packaging enterprises, and more than 3,000 downstream application enterprises. At present, the downstream LED lighting application field is already a gathering of capital. The spread of hot investment is very rapid, and the more it extends to the downstream of the industrial chain, the more crazy the investment becomes.
In the midstream packaging industry of LEDs, according to ASM Pacific's 2010 annual report, the world's largest supplier of LED integration and packaging equipment, as of December 31, 2010, the annual turnover reached 9.515 billion Hong Kong dollars, compared with 2009's 4.732 billion Hong Kong dollars. The performance surged by 101.1%, and the overall profit increased by 203.8% compared with 2009. Although the sales profit rate is as high as 33.8% and the net profit is three times that of 2009, the orders are still increasing. The small orders are basically out of stock, even if the big customers have to pay the deposit eight months to one year later. Goods can be mentioned.
Who provided a large number of orders for foreign companies such as ASM Pacific? It is an LED industry cluster and industrial base that has sprung up all over the country. For example, in Guangdong Province, where the industry scale ranks first in the country, Huizhou Cree, BYD Lighting and other projects with an investment of over RMB 1 billion have been launched; Germany Osram, Taiwan Jingyuan Optoelectronics, Li Zhou Electronics, etc. have entered Guangdong; Konka Listed companies such as Skyworth and Dazu Laser also entered the LED industry by means of mergers and acquisitions, capital increase and share expansion, etc.; there are LED backbone enterprises with a scale of over RMB 100 million, such as Dongguan Qinshang, Dongguan Fuhua and Fenghua Hi-Tech.
Guangdong has initially formed a LED industry belt with a total scale of over RMB 50 billion, which is enough to see the “crazy†of investing in LEDs. Although the output value of China's LED lighting industry exceeded RMB 150 billion in 2010, compared with that in 2008, the LED lighting industry has been in trouble since 2011, exposing a series of problems in the industry.
Investment frenzy triggers overcapacity
According to the figures of the Higher Industrial Research Institute, from January to July this year, China's MOCVD equipment increased by more than 200 units. It is expected that China's LED chip production capacity will be 10 times that of 2010 in 2010. At present, China's MOCVD equipment has reached 543, counting 96 projects under construction, the total number will reach 1,642.
The large increase in the number of equipment is only one of the signs of overcapacity risks, and overcapacity in the material sector is even more worrying. The domestic LED sapphire substrate has an annual production capacity of 6.85 million pieces and 41 projects under construction, with an investment of 12.08 billion yuan. If the expansion is completed, the annual production capacity will rise to 101 million pieces. In 2011, the global demand for LED sapphire substrates was less than 50 million pieces, and there were less than 10 million pieces in China. The trend of severe overcapacity has already appeared.
Last year, the market was generally too optimistic about the rapid development of LED lighting, resulting in excessive investment into the upstream of the LED industry, which also led to shortage of talent in the industry and structural overcapacity. In the first half of this year, the global LED lighting market performance was not as good as expected. According to the semi-annual report of domestic listed companies, most of the mid-stream packaging companies are facing an increase in revenue.
At present, in the LED industry, the overcapacity of the upstream sapphire substrate is the most serious. Although the capacity of the midstream packaging industry is relatively surplus, because of the worst anti-risk capability, it is expected that nearly 10% of enterprises will be eliminated by the end of the year, while the overall downstream LED application is eliminated. Best performance.
Overcapacity has become the soft underbelly of the LED industry. The LED investment planning and projects under construction that have been competing in the past two years have far exceeded the actual demand of the market, and the passion for blind expansion of production capacity is still burning.
Classroom Capture Media Processor
Classroom Capture Media Processor,Touch Control Panel,Classroom Recording Processor,Intelligent Recording Processor
SZ REACH TECH,.CO LTD , https://www.szreachtech.com