Yangzhou Municipal Government MOCVD subsidy policy will end in July 2011

The MOCVD subsidy policy first introduced by the Yangzhou Municipal Government has caused follow-up effects on other local governments in China, which has caused a wave of investment in LED epitaxial factories in China. However, when such a financial subsidy boom subsided, LEDinside specially interviewed Sun Xiaojun, deputy director of Yangzhou Investment Promotion Bureau. Deputy Director Sun said that the financial subsidy policy cannot continue indefinitely. Yangzhou's financial subsidy policy will come to an end in July 2011, and most local governments are also observing whether they need to follow up.

The Yangzhou Economic Development Zone was established in 1992 and has been actively developing the green energy industry in recent years. And the solar photovoltaic, smart grid, and semiconductor lighting industry as the main axis of development. And successfully attracted leading manufacturers in various industries. For example, in the field of solar energy, such as GCL, Wuxi Suntech is represented. And there is also a smart grid demonstration park in the smart grid field.

In 2007, the Ministry of Science and Technology of China identified Yangzhou as one of the national semiconductor lighting industry bases. At present, LED companies including Yanyuan, Zhenmingli, Edison, Dongbei, WOOREE, and Shifu have invested in Yangzhou. From the upstream sapphire substrate, epitaxial wafer, package to display backlight and lighting applications, a complete industrial supply chain has been formed.

In addition, the Yangzhou Municipal Government has taken the lead in providing a MOCVD machine with a financial subsidy of RMB 10 million. In particular, the Yangzhou Municipal Government differs from other local governments in the use of tax credits for subsidies. Instead, it pays 50% of the amount after the machine is in place, 30% during the trial production period, and the last 20 after the mass production acceptance phase. % final payment. Therefore, it attracted many LED epitaxial wafer manufacturers such as Yuyuan Optoelectronics, Sapphire Optoelectronics, Zhenmingli and Longyao Optoelectronics.

However, in the case that local governments have followed suit to attract investment, excessive investment in equipment has deepened doubts about the oversupply of the LED industry. Not only has the Chinese central government observed such a phenomenon, but the financial resources of local governments will gradually be exhausted. Therefore, Yangzhou City has informed the manufacturers that the MOCVD financial subsidy policy will end in July 2011, and manufacturers must The machine will be transferred before July to receive subsidies. Other local governments are also considering follow-up.

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