Reduction of subsidy LED chip SMEs in case of "Waterloo"

The most direct and biggest impact on the LED industry is financial subsidies. Obviously, LED lighting companies have always considered the government to “eat”. However, for most LED chip companies in China, the government’s support for “rice owners” is gradually increasing. drop out. In the past three or more years, government subsidy policies have supported the development of this industry in China.

Since 2011, LED chips have been quickly converted from oversupply to oversupply, and many LED chip companies have a plant operating rate of only 50%. In the past year, overcapacity issues caused the collapse of hundreds of small LED chip manufacturers in China. The market's cyclical decline in demand for LED chips and apparent overcapacity have affected the price of LED chips and the profitability of related companies. At present, the basic performance of LED chip market is weak.

In the “war” of this subsidy policy, large-scale LED chip companies have no doubt prevailed. They will continue to expand their production capacity in the face of slowing market growth, and thus gain a larger share in government-supported LED projects. Obviously, the collapse of weaker companies will be beneficial to the development of large-scale, LED chip companies supported by the government, so that these companies will gain certain advantages in the international competition. Small and medium-sized LED chip companies also need to be aware of financial subsidies. Subsidies are not "long-term meal tickets." Strengthening the gold content of their own technology and leaving the government "greenhouse cultivation" is the right path.

LED industry to upgrade the government or their own?

Aladdin "light" point: government enterprises "sit on the same boat" to promote the LED industry to upgrade After years of development, the current LED industry in the integration, upgrading, replacement, cooperation and other issues, which also has become a further rapid development of the industry The bottleneck, and LED industry upgrade has become a great opportunity for the industry to create development. The author believes that the upgrading of the LED industry is not a task that can be accomplished by the government or the enterprise alone. The government and the company are a team. Everyone is “same ship” and should collaborate on innovation, reform, optimization, and upgrading of the LED industry. .

As a government, it should give all-round support to enterprises in terms of capital, market, and policies, and actively promote enterprises to further deepen industrial upgrading, break through technological bottlenecks, improve industrial chains, and expand industrial scale. As an enterprise, it is necessary to increase production capacity through technological transformation, accelerate the construction of pre-projects, transform the advantages of resources into economic advantages and industrial advantages, accelerate the progress of projects under construction, and bring into play better economic and social benefits.

Through the cooperation of enterprises and scientific research institutes to introduce scientific research results, the government has to encourage the upgrading of the industrial structure through the establishment of enterprise development funds, technology research and development centers, and so on, so as to achieve a win-win situation.

Looking at the impact of disputes on Diaoyu Island on the lighting industry in China and Japan Aladdin "light" point: Do not ask "East" to ask "Western" Japan needs to think carefully and experience the bitter "World War II", "peace" and "development" have become this era The global theme. The normalization of diplomatic relations between China and Japan 40 years ago was the default “agreement” reached on this basis. Looking at the issue from the economic point of view, for the time being, aside from the grievances of the two generations of the two countries, the relationship between China and Japan is best described by “one garment and one water”. This is not only the proximity of the two countries but also the long-term cultural "interconnection."

The traditional Japanese culture has mostly come from the powerful Chinese Han and Tang dynasties, and it is like the origin of this cultural influence. To this day, on the economic level, Japan is still inseparable from the huge Chinese market, which has caused the people of the country to “not buy the day”. One year after the goods, Japan’s economic structure was completely destroyed. Regardless of whether or not the judgment is accurate, it has always been. The seriousness of Japan’s “dependence” on the Chinese market can also be seen.

In fact, the issue of the ownership of the Diaoyu Islands territory is only a fuse, flashpoint. However, we must strive for things at our own homes, and we must insist on our determination. This is understandable in itself. China has a wealth of resources and a huge consumer market. Naturally, it can ask the West not to ask the West. Once the two countries have borne evil, it will hurt the "feelings" of the two peoples and the "economy" of the two countries' cooperation - including our lighting industry will also be involved in this whirlpool. However, what can be judged is that the extent to which the Japanese economy suffers from this is bound to be even more profound and far-reaching. Therefore, it is indeed more necessary to think carefully and be cautious.

Aladdin "light" point: "downsizing" plus "reshuffle" LED industry remains to change from the following Some people think that the LED lighting industry has entered the "life and death" juncture, it is not an exaggeration. LED lighting production companies are like weeds, the relevant policy standards are numerous, directly led to the relevant departments to deal with corporate monitoring is not effective, companies face the relevant departments are at a loss. The management system under long-term chaos face unprecedented urgent change needs.

Lighting companies are so fierce that they are springing up. The situation of out-of-control has caused a lot of miscellaneous qualifications. However, the market itself has an invisible elimination mechanism, and naturally, under the law of survival of the fittest, a "shuffle" movement will be created. The complicated "relevant departments" have yet to achieve "precise soldiers and simple governance" through "downsizing" in order to make the division of duties between the departments more clear. The company has something to climb to the "Sambo Hall," and it can also look for the threshold, and will not always feel it. Nails.

"There is no rule without rules," and the rules have become increasingly unsystematic. In particular, some of the hot-headed "regulations" require a sorting process. The formulation and promulgation of policy standards has always been less refined, and what it needs more is just an authority and fairness. When all these problems are properly solved, the “serious illness” that the LED lighting industry suffers at the moment will also be solved without medicine.

European debt "butterfly effect": LED packaging companies staged a "battle of life and death"

Aladdin "light" point: "Survival of the fittest, the survival of the fittest" is the inevitable evolution of the LED industry The LED industry market competition is too fierce, various companies are desperately lower prices, some companies in order to get orders, and even losses have to ship, this The mentality of “marrying on a bed with a big bed” reflects the current hunger and thirst of the LED industry. The status quo of the industry is worrying. The shuffling and integration of the industry are getting closer and wider, and they are about to reach the doorstep.

In fact, the demand of the downstream market for packaging is not saturated and needs to be robbed by enterprises. Instead, it is growing. However, the mismatch between supply and demand and the increase in new entrants, especially the general homogenization of domestic packaging products, are constantly engulfing gross margins. LED packaging companies have to fight for their own survival, and the industry has staged a "birth and death battle."

European debt "butterfly effect", affecting the whole body, "capital" why the effect will be so large? In fact, the LED industry has been in danger, the European debt crisis is just the last straw, will push the LED industry to the cusp. In fact, in the future for a long period of time, it is not only funds that determine the LED packaging company's "life and death", but also cost control, industrial chain integration efficiency and other factors.

Looking at the entire LED industry, a series of problems such as the lack of standards, the lack of standards for the owner, and the worrying quality of the “battle of life and death” have led to waves in the industry and a reshuffle and integration. However, shuffling and integration are issues that will surely confront the company in a certain stage of development. They are the “evolutionary theory” of the industry, survival of the fittest, survival of the fittest. Reshuffling and integration does not mean “disappearing” or “destruction”. This is an impetus. Currently, the LED industry is only a stage of transient market over-competition. After a round of reshuffling and integration, a batch of products will be born. Excellent companies, thus driving the entire industry forward.