Yangzhou LED subsidies expand downstream lighting

China's Yangzhou Municipal Government launched the LED upstream epitaxial plant's live-in policy in 2009. When it is put into production in Yangzhou, it will receive a subsidy of 10 million yuan for a blue-green MOCVD (organic metal chemical vapor deposition) machine.

However, the subsidy policy was originally scheduled to stop in July 2011, and Yang Yanzhou Party Secretary Wang Yanwen pointed out that the relevant LED subsidy policy will continue and expand to downstream lighting applications.

Wang Yanwen also stressed that the relevant LED subsidy will continue to extend from the LED upstream supply chain, hoping to bring up the performance of the downstream supply chain. It is expected that the lighting will be the direction of the next phase of subsidies; the market expects to set up a packaging factory in Yangzhou. Edison and Dongbei (2499) have the opportunity to benefit.

In order to attract investment and build Yangzhou as one of the national semiconductor lighting industry bases, in 2009, the Yangzhou Municipal Government took the lead in proposing a MOCVD machine to subsidize 10 million yuan in financial subsidies. The Yangzhou Municipal Government is different from other local governments in using tax credits. The subsidy is based on the cash payment method. After the machine is in place, the subsidy is 50%, the subsidy during the trial production period is 30%, and the final 20% after the mass production acceptance period.

Zhang Liansheng, deputy director of the Yangzhou Economic and Technological Development Zone Management Committee, pointed out that after the policy was introduced, many manufacturers came to invest, such as Yangyang Optoelectronics, Sapphire Optoelectronics, Zhenmingli, Ganzhao Optoelectronics, and the Institute of Semiconductors of the Chinese Academy of Sciences. Yangzhou’s investment has also caused other local government groups to work, such as Wuhu and Jiangmen, which have introduced similar subsidy policies.

Zhang Liansheng said that the policy launched this time is expected to stop on July 1. However, due to the signing of the Yangzhou Optoelectronics Development Zone, the MOCVD before the end of 2011 is within the scope of subsidies.

LEDinside believes that on the eve of the 2011 financial subsidy gate is about to close, the LED factories are bound to move into the machine before the end of the subsidy policy, and it is possible to set off another wave of MOCVD machine boom in the first half of 2011.

In the face of the end of the policy subsidy policy in the second half of 2011, will the first two major equipment manufacturers Germany's AIXTRON US Veeco significantly reduce orders? Veeco Greater China general manager Wang Keyang believes that in the LED industry take off, the future of MOCVD Demand will continue to exist and this policy will not have much impact.

It is understood that AIXTRON's current orders in China have also been released in the third quarter of 2011. "Not only in Yangzhou, LEDs in other regions, the demand for MOCVD is still quite large."

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