Skip to main content

declare bankruptcy under a new government resolution to reduce subsidies

Analysts point out oversupply and the economic downturn has depressed prices to below production levels, meaning large numbers of small companies have already closed their businesses. It’s no choice but to integrate or declare bankruptcy under a new government resolution to reduce subsidies.

Over the past three years, the Chinese government has been instrumental in providing support to Chinese LED chip companies in the form of tax breaks and free land use. It has also provided $1.6 billion of funds to companies to purchase the MOCVD. Due to government support, global share of the market for packaged LED components rose from 2 per cent in 2010 to 6 per cent in 2011.

But the boom years are coming to an end, with many of China’s LED chipmakers operating their factories at 50 per cent capacity. Around half of the 700 or so factories that received government help have been left idle.

Now the Chinese government is said to want to reduce the expenditure given to smaller companies focussing instead on larger ones like Elec-Tech International Co Ltd and Sanan Optoelectronics Co Ltd, China’s top LED chipmaker with a market value of $2.8 billion.

Labels

Labels:

Comments

Post a Comment

Popular posts from this blog

while all of hit new record quarterly highs

As a result, to increase greenhouse yields and decrease producers' energy costs, they will team up with Rutgers University, the University of Arizona, Michigan State University, and Orbital Technologies Corp. on the four-year project to improve and evaluate LED lighting for greenhouse use, according to Cary Mitchell, a professor of horticulture and project director for the grant. Total sales from January through September of 2010 hit NT$92.88 billion, up 35% YoY. Meanwhile, operating profit and net profit reached NT$5.67 billion and NT$6.8 billion respectively, with accumulated EPS of NT$3.05 increasing a remarkable 50% YoY. In 3Q10, The Company’s gross margin and operating margin reached 13.9% and 6.7%, up 0.9% and 0.4% QoQ, respectively. Lite-On’s net cash position held steady at NT$11.9 billion, after its recent cash dividend distribution of NT$5 billion. Non-operating items posted a net income of NT$508 million in3Q, with Perlos’ Q3 sales reaching €138 million, up 12% YoY. Perl...
Post a Comment
Read more

It is extremely rare for the government to ask retailers

Stephan Wittekind, Business Development Director at Traxon, said, “The highlight of this concept is that the fixtures are completely integrated into the semi-transparent structure. Therefore, they are not visible during the day, and the appearance of the stadium is completely different by night.” According to The Yomiuri Shimbun, Japanese government has encouraged major electronics retailers and home appliance makers to voluntarily halt production and sales of incandescent bulbs to save Led linear high bay light power this summer. The government plans to submit a written request under the names of Economy, Trade and Industry Minister Yukio Edano and Environment Minister Goshi Hosono to an industry group, probably sometime this week. The industry side has indicated it will oblige. It is extremely rare for the government to ask retailers and manufacturers to refrain voluntarily from selling and producing specific products.The two ministers plan to send their request to Sho-ene Akar...
Post a Comment
Read more

Universal Display will develop new technologies and processes for OLED manufacturing

In addition to the patent sale, the 2 companies are engaged in “a strategic relationship,” with strengthened and enhanced alliances between the companies. Fujifilm will expand its business for the supply of Fujifilm's highly functional materials, such as barrier films, conductive films and flexible substrates, to OLED manufacturers globally, including Universal Display's worldwide customer base. Universal Display will develop new technologies and processes for OLED manufacturing. John R. Peeler, Veeco’s Chairman and Chief Executive Officer, commented, “Veeco continues to deliver solid results in a soft market. Second quarter revenue was $137 million, and adjusted EBITA and non-GAAP earnings per share were $20 million and $0.37, respectively, with gross margins of 45%. Veeco generated about $19 million in cash flow from operations, ending the quarter with $540 million in cash and short term investments.” Second quarter LED & Solar revenues were $87 million, including $75 mil...
Post a Comment
Read more