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:

Comments

Post a Comment

Popular posts from this blog

The factory will replace a much smaller lighting factory

Felder has a comprehensive knowledge of the field of optosemiconductors and decades of management experience with prominent players in the electronics industry.Since 2003, he has filled various management roles in the areas of OLED and LED technology with Osram, where as senior vice president of sales he was lastly responsible for Osram’s worldwide general lighting sales activities. Zumtobel Group CEO Harald Sommerer thinks highly of Felder, “We are delighted that, in Alfred Felder, we have been able to recruit a highly experienced technology expert and far-sighted manager to head up our Components business. With his extensive knowledge of LED and OLED technology, his familiarity with the industry and his leadership skills, he will be able to play a major part in ensuring that Tridonic is fit for the future in this dynamic phase of the technology shift.” The factory will replace a much smaller lighting factory and will include a production shop and an admininstrative block, as well as ...
Post a Comment
Read more

Innovation in Lighting Symposia and the Lightning Award Presentation

Our show is an example of how co-operating with an international partner, together with a sizeable show investment year after year, benefits the lighting industry," Dr. Pan continued. “We are totally committed to supporting the growth of China's lighting industry. We provide a sales and marketing platform for exhibitors and a forum for industry knowledge exchange. During this year's show we will organise more than 30 seminars, conferences and matchmaking opportunities that suit all levels of lighting professionals. These include special information days featuring China, Taiwan and Japan, the Lighting Design Gallery, Guangzhou international Lighting Technology Symposium, Innovation in Lighting Symposia and the Lightning Award Presentation." Guangzhou Guangya Messe Frankfurt is totally committed to the exchange of industry knowledge to support the growth of China's lighting industry. For example, the close connection with the popular “Alighting” website, magazine...
Post a Comment
Read more

Despite Nichia planned to enter into LED markets in China

This emerging potential for green LED applications follows on the heels of an announcement of applications for blue LEDs on April 25, 2012. NGK is now poised to apply its technology to the inverters used in hybrid and electric vehicles, power amplifiers for base stations of wireless communication, and other power devices. To this end, NGK will take steps to further reduce defect density for its GaN wafers, and to produce larger wafers that are greater than 6 inches in diameter. Despite Nichia planned to enter into LED markets in China and enlarge its market share there, it has been foiled by simmering anti-Japan sentiment in China due mainly to the Diaoyutai island issue, so is considering to cooperate with Taiwanese enterprises for further development. And two Taiwanese companies, including Hon Hai Group and Epistar, will be part of the joint venture. According to senior Nichia executives and based on positive outlook towards widespread use of LED lighting, the firm focused on the amp...
Post a Comment
Read more