Government Support To Weaken LED Enterprises Against Wind Growth

Nov 16, 2018

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Xi jinping pointed out: general secretary for 40 years, private economy in our country since the childhood, from weak to strong, growing, has become indispensable to the development of our country power, become the main areas of employment entrepreneurship, the important main body of technology innovation, an important source of national revenue, for our country the development of the socialist market economy, government function transformation, rural surplus labor transfer, such as international market development has played an important role. China's economic development can create a Chinese miracle, the private economy is indispensable!

While enterprises in the LED display industry are purely "grassroots" enterprises, and purely private enterprises, the content of this private enterprise symposium is undoubtedly closely related to enterprises in the LED display industry. In recent years, the development of LED display industry cannot be achieved without the government's strong support, especially the government's support for the industry such as integrated circuit continues to increase. 

In particular, the "zte event" of the previous period has exposed the "lack of core and soul" nature of domestic enterprises, which reflects that national enterprises are also very dependent on foreign enterprises in some core technologies. In the LED display industry, chip is also an important link. All the processes should be based on chip. Fortunately, the domestic LED industry is relatively complete, and there will be no "zte event" in the industry. 

Samsung electronics has almost ordered Mini LED capacity in xiamen of SAN 'an optoelectronics, a Chinese manufacturer of LED epitaxial wafers and chips, to secure the supply of large-size high-end LCD TV backlight chips it will launch in the third quarter of 2018, according to news reports. Sanan has been able to develop so well that it cannot be separated from the government's support for the industry. From 2009 to now, the total amount of subsidies received by sanan optoelectronics has exceeded 4.4 billion yuan, which is not small. 

However, in recent years, the government's support has been gradually weakened, which is of course not that the LED chip industry is not important anymore, but that the LED chip industry has been gradually on the right track. It doesn't depend so much on government subsidies, and it can have some independent development ability in the current market environment. 

LED is a sunrise industry of energy saving, environmental protection and new materials, and the market is very large. At the very beginning, this industry is considered to have a broad market prospect, so all regions attach great importance to this industry. Of course, many local subsidy policies have been issued, which is also a trend of the development of many industries around the world, especially in the development of the semiconductor industry. China, the United States and many other countries have introduced corresponding subsidy policies to support the development of this industry. 

Mr. Lin kechuang, general manager of SAN 'an optoelectronics, said, "with the development and maturity of the LED industry, the abolition of subsidy policies or the reduction of standards is positive. When the industry develops to a certain extent, it still needs the automatic regulation of the market economy. First of all, with the continuous maturity of technology, I think the development of enterprises should be driven by internal factors. With the continuous maturity of the market, it is reasonable and positive for the government to gradually withdraw its guiding policies. Going forward, I believe that enterprises and industries will become more and more mature and healthier. Therefore, I think it is reasonable that the degree of support for enterprises in various regions will decrease or decrease. 

The government is definitely supportive to enterprises and even the industry. As for how to support and how to support, it must be divided into industrial stages. Direct risk protection and financial support can only be targeted at the early stage of industrial development. 

Of course, when the industry is on the right track, the policy guidance of the government is also indispensable. In a crisis, even the government has to turn the situation around. For example, under the premise that the stock market is falling in a large area and many enterprises are short of funds, many local governments have stepped in to rescue the market. 

Shenzhen state-owned capital arranges tens of billions of special funds to assist the listed companies have made new progress, it is reported that the listed companies that received the assistance of shenzhen high-tech investment guarantee guarantee co., ltd. and shenzhen medium and small loan co., LTD. Shenzhen gaoxin first batch of private listed companies have 16, among which lehman shares are listed, reflecting in the stock market, lehman shares are all the way red against the wind. 

Statistics show that so far this year, 41 of the listed companies with private capital holdings have announced that they will have state-owned equity stakes, and four of them have terminated. Of the listed companies controlled by state capital, 13 have announced that they will bring in private capital as shareholders. In addition, more than 8 of the 90 m&a cases with the subject of state-owned listed companies have been subscribed to by the state capital. 

In fact, whether the government increases or weakens the support, it is based on the premise of helping the industry to develop positively. When the industry has the ability to develop independently in the market, the weakening of industrial support can undoubtedly make the industry better and healthier to adapt to the current market. Not blindly protect, also not laissez-faire can make the industry faster and better go on the right track.


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