Getting rid of government subsidies LED companies need to develop in competition

Recently, the "Semiconductor Lighting Energy Conservation Industry Plan" proposed that by 2015, China's LED lighting will account for 20% of the overall lighting market, and the scale will reach 450 billion yuan. All incandescent lamps for general lighting above 60W will be eliminated. The most prominent highlight of this plan is the introduction of the guiding principles of government guidance and market allocation, the establishment of a standard system, the improvement of entry barriers, and the establishment of a dynamic industry leader system. Generally speaking, it introduces the market competition mechanism supervised by the government, “weaning” the enterprise, and allowing the enterprise to survive and develop in the competition.

According to data released by the National Development and Reform Commission, there are currently more than 5,000 LED lighting companies in China, including about 1,000 enterprises above designated size. China's semiconductor lighting companies are generally small in scale, low in industrial concentration, core patents need to be broken, market competition is disorderly, standards, testing and certification systems are still to be strengthened, and the current situation has been plaguing the development of China's LED lighting industry. LED lighting market share is only 0.5%.

In recent years, the annual growth rate of global LED lighting energy-saving industry output value has remained above 20%. The global lighting market is 134 billion US dollars, of which LED lighting market is about 5 billion US dollars, accounting for 3.7% of the global lighting market. By 2020, the global lighting market will exceed 150 billion US dollars, and the LED lighting market is expected to reach 75 billion US dollars, accounting for 50% of the global lighting market. At present, the United States and Japan have competitive advantages in core devices such as LED chips; Europe has a competitive advantage in automotive lighting and functional lighting; China's Taiwan LED chip manufacturing and packaging have the largest production capacity; South Korea has emerged with its big business strategy Advantage.

Compared with the international market, there is a big gap in China's LED industry. The slow development of enterprises is not the government's support and subsidies. On the contrary, due to the excessive subsidies and support of the government, many enterprises have caused government dependence and lost competition. power. Thousands of companies have invested in the LED industry one after another, many in order to get a share of the state subsidies, and enjoy a variety of preferential tax breaks, subsidies and cheap industrial land. It can be imagined how much such a market competitiveness of enterprises can be subsidized by the government. Some companies rely on government subsidies for net profit, and state subsidies account for a significant portion of their profits. China's LED leading enterprises are not ideal. In 2012, Sanan Optoelectronics' third-quarter profit was 667 million yuan, of which 328 million yuan was subsidized; Dehao Runda's 2012 net profit was 120 million yuan, and government subsidies were As much as 150 million yuan.

Enterprises relying on government subsidies not only exist in the LED industry, but also in emerging industries such as wind power and photovoltaics in China. Taking wind power as an example, in 2012 China's wind power installed capacity reached 60.83 million kilowatts, an increase of 31.6% year-on-year, ranking first in the world, but in 2012 it fell into a quagmire of losses in the whole industry. Huarui Wind Power, a leading domestic fan manufacturer that has developed at a rocket-like speed, has repeatedly “stopped work and holiday”. Looking back at China's LED enterprises, the Guangdong region, which is known as China's semiconductor industry cluster, has closed more than 80 LED lighting companies in Shenzhen in 2012; Foshan, Guangdong, nearly 10% of LED lighting companies closed in 2012, Dongguan, Zhongshan LED lighting companies are also in deep recession. There are 11 net profit declines in the 20 LED companies listed. Yan Jun, executive deputy secretary-general of the National Semiconductor Lighting Engineering R&D and Industry Alliance, revealed that China’s largest LED lighting company has a production value of 4 billion yuan a year. The industry predicts that one-fifth of LED lighting companies in China may close down in 2013.

The blind development of quick success and instant benefit will only lead to insufficient competitiveness, and it will not be able to escape the bad luck in the market. The huge amount of state financial subsidies has not only made these enterprises that have grown up in the greenhouse "new", but has become a catalyst for their "dead". At the same time, the state finances are also unable to afford the growing number of enterprises that do not benefit as long as they are subsidized.

This "Planning" puts forward the guiding principles of combining government guidance with market allocation, establishes a standard system, improves the threshold for entry, and raises the scale of the enterprise. The "Plan" proposes that by 2015, 10-15 core technologies should be formed. It has more independent intellectual property rights and well-known brands and leading enterprises with strong quality competitiveness. It can be described as the "ice-breaking" journey in the cold winter. The ancients "give people a fish, it is better to teach people to fish", that is, to use state subsidies to improve the core competitiveness of enterprises, and face the severe challenges facing the LED lighting energy-saving industry. In the middle, let the company grow and grow in the competition.

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