China's LED lighting industry development

After the carnival of previous years, the aftermath of the LED lighting industry has continued to show up, and its reshuffle period is likely to continue until mid-2014. If LED lighting companies do not see the market environment in a timely manner, it is possible to repeat the recovery of the photovoltaic industry.

For a while, LED light sources that have been favored by the government and the industry have been caught in an uncertain future. At the same time, from another perspective, the chaos after the industry began to calmly ponder the future direction of LED light sources.

Be wary of "doing bad things"

A few days ago, people in Shanghai said that LED lighting in Shanghai was once the government’s eye-catcher, and most LED chip companies have given huge subsidies. However, since the beginning of this year, companies that have received subsidy have not achieved any results. The source claimed that Shanghai began to curb the development of LED lighting. In 2009, the Yangzhou City Government of Jiangsu Province introduced the MOCVD subsidy policy, which has led other Chinese local governments to follow suit. However, at the beginning of last year, Yangzhou halted the MOCVD subsidy policy, and MOCVD subsidy has been gradually halted. Obviously, if the informed person reveals that Shanghai will begin to curb the development of LED light sources, then this is very likely to be a microcosm of LED light source development in the country. Local governments have also become more rational about the development of LED light sources.

LED development so far, the introduction of policy subsidies one by one, from upstream equipment to downstream applications procurement readily available. However, in the end, how many companies are really committed to research and development, expansion of production, and contribution to the development of the industry, rather than as "spending money" to spend their own? If the subsidy is in place, the development of the enterprise will not be effective. What kind of measures should the government use to save? Do you need to take legal procedures for accountability? Or can the people's hard-earned money be lost without investigation? In addition, what kind of situation will the subsidized enterprises face after the huge financial subsidy policy is terminated? What impact will this have on the industry? These important issues require deep thinking.

From now on, the government subsidy is understandable, but the development path of guiding ideology and choice should obviously be re-thought and vigilance turned into a “good intention to do bad things”.