Government Subsidies For Related Enterprises In LED Lighting Industry In 2018

- Feb 11, 2019-

Since 2018, the government subsidy boom in the lighting industry, which seems to have been quiet, has reappeared. The author sorted out the situation that the domestic lighting industry related enterprises received more than 100 million yuan of government subsidies in 2018. It can be seen that subsidies are mainly concentrated in the extension chips and packages in the upstream and middle of the industrial chain, mainly because of the relatively high technical threshold in the upstream and the relatively large investment in equipment and research and development; in addition, the upstream of last year ushered in a peak of production expansion, every manufacturer should keep up with the investment from the tactical considerations of market demand or from the strategic planning of competitive environment and development prospects; The governments of Yiwu, Suqian, Quanzhou and Ji'an in Zhejiang Province are the most vigorous. At present, these regions are the hot spots for the optoelectronic industry to attract investment. Many subsidies are closely related to the activities of attracting investment. Subsidies include infrastructure subsidies, industrial funds, scientific research subsidies, equipment subsidies, loan subsidies and tax incentives.

In fact, domestic enterprises have made remarkable progress in the upstream and middle business of LED in recent years. The performance-price ratio of related products has directly approached the world's first-class manufacturers. This has also led to the gradual centralization of LED OEM orders to Chinese manufacturers, which has played a positive role in the early development of government subsidies. However, excessive overheating of subsidies may also lead to overcapacity and intensify price competition, which may lead to subsidies dependence of some enterprises, and increase the risk of trade barriers to China in European and American countries, which is not conducive to the healthy and sustainable development of the whole industry.