Guangdong is at the forefront of supporting the development of the LED industry. Due to the government's strong subsidies, Guangdong has become a national LED lighting demonstration province, and to a certain extent, it has also affected the fair competition in the market.
The Ministry of Finance, the National Development and Reform Commission, and the Ministry of Science and Technology released a financial subsidy program for the promotion of LED indoor lighting products at the end of February 2012. The State Council proposed in May to arrange 2.2 billion yuan to promote energy-saving lamps and LED lights.
Under the guidance of a series of central policies, Guangdong Province has introduced an implementation plan to promote the use of LED lighting products, and fully open the application of LED lighting applications. Foshan, Dongguan, Zhongshan and other cities also actively responded to provincial government policies, introduced subsidy programs, and vigorously promote the application of LED lighting products. Among them, Foshan Chancheng 15 million subsidized LED lighting products, Dongguan single project maximum subsidy of 10 million, Zhongshan LED to save electricity costs all subsidies.
Zhao Jinsong, Development Planning Department of the Science and Technology Department of Guangdong Province, said in an interview with the agency that Guangdong’s general practice in stimulating the LED industry is to enact a lighting demonstration project proposed by the province to encourage and guide local governments to build public areas. Spend financial funds and promote LED projects through the EMC model.
Industry associations say LED support makes enterprises lose market acumen. For Guangdong's large-scale LED subsidy policy, Cai Jinjiang, secretary general of Shenzhen Semiconductor Industry Association, has his own opinions. He believes that the advantage of Guangdong Province is that it has a stable market mechanism, and government subsidies have become a double-edged sword, which has affected the orderly market competition and has caused many leading enterprises to lose their sensitivity to the market.
At present, there are 4,000 to 5,000 LED enterprises in Guangdong Province, becoming a major LED province without core competitiveness. He said: PV has not brought pressure to Guangdong Province, and the LED industry has brought severe capacity pressure to Guangdong Province.
For the LED subsidy policy, Zhang Haijun, honorary chairman of the Shanghai Lighting Society, made it clear that government subsidies should not be given to enterprises, but should be directly subsidized to ordinary people.
Government subsidies should shift to the training of science and technology teams for the Chinese government to greatly subsidize LED leading enterprises. Zhu Xinping, global president of China Micro-Semiconductor Equipment Co., Ltd. and general manager of Greater China Business Group, believes that subsidies from the government will not allow China's LEDs to become internationalized, but will weaken the enterprising spirit. As a result, the market's bad competition has intensified, and the government should cancel the subsidies for MOCVD and LED.
For example, he said that Taiwan will specially design high-tech industrial parks to train scientific and technical teams, and then sell the technology to enterprises or transfer enterprises instead of diversifying funds to enterprises.
In recent years, Guangdong has actively introduced policies to support the development of the LED industry. During the 12th Five-Year Plan period, the Guangdong Provincial Government invested 450 million yuan each year to set up a special fund for the development of the LED industry. The “Implementation Plan for Promoting the Use of LED Lighting Products in Guangdong Province†released in May 2012 shows that the scale of LED industry in Guangdong Province will reach 500 billion yuan by the end of the 12th Five-Year Plan period.
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