Recently, a research report released by Reuters said that due to the global sluggish demand and the reduction of subsidies for certain manufacturers, it is expected that half of China's LED chip manufacturing companies will go bankrupt. The report analyzes that oversupply and the recession are below the level of production, which means that a large number of small companies will shut down their operations. Reducing subsidies based on new government resolutions, these companies may have no choice but to leave, consolidate or declare bankruptcy.
According to the report, in the past three years, the Chinese government has been supporting Chinese LED chip companies to provide MOCDV (organometallic chemical vapor phase) with a total of 160 million U.S. dollars in the form of tax incentives and unpaid land use. Deposition). Thanks to the support of the Chinese government, China's share of the global packaged LED component market has increased from 2% in 2010 to 6% in 2011. However, the period of economic prosperity is coming to an end. Many Chinese LED chip manufacturers operate only 50% of the production capacity, and about half of the 700 factories are idle.
Now, the government wants to cut subsidies for smaller companies, and concentrates on large companies such as Guangdong Dehao Runda Electric Co., Ltd. and Sanan Optoelectronics Co., Ltd. Some analysts believe that this is China's strategy and hope that the largest company in this restructuring will survive. Bao Enzhong, deputy secretary-general of the Shenzhen LED Industry Association, said: "China's monetary policy is not enough to support small and medium-sized enterprises, and we will see more companies fail."
According to the report, in the past three years, the Chinese government has been supporting Chinese LED chip companies to provide MOCDV (organometallic chemical vapor phase) with a total of 160 million U.S. dollars in the form of tax incentives and unpaid land use. Deposition). Thanks to the support of the Chinese government, China's share of the global packaged LED component market has increased from 2% in 2010 to 6% in 2011. However, the period of economic prosperity is coming to an end. Many Chinese LED chip manufacturers operate only 50% of the production capacity, and about half of the 700 factories are idle.
Now, the government wants to cut subsidies for smaller companies, and concentrates on large companies such as Guangdong Dehao Runda Electric Co., Ltd. and Sanan Optoelectronics Co., Ltd. Some analysts believe that this is China's strategy and hope that the largest company in this restructuring will survive. Bao Enzhong, deputy secretary-general of the Shenzhen LED Industry Association, said: "China's monetary policy is not enough to support small and medium-sized enterprises, and we will see more companies fail."
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