For lighting industry, LED subsidies is clearly not a fresh word, the Chinese government since 2009 subsidies LED lighting industry, the central government has six consecutive years of semiconductor lighting industry subsidies. With the support of subsidies, LED industry especially LED chip industry ushered in the explosive growth. Policy since 2013, China LED industry ushered in the spring breeze, from the state council to the local governments have issued policy promoted the LED, local government and the call of national promotion of green lighting project will roll out plan on the LED lighting products.

Government subsidies of beautiful results for the enterprise

LED the development of enterprise nature is little not the government subsidized, studies have shown that the domestic semiconductor and LED companies to receive government subsidies considerable, there are even companies received government subsidies of its current profit nearly five into.

According to incomplete statistics, the LED lighting industry "subsidy" three Ann photoelectric from 2010 to 2010, obtain subsidies amount exceeds 3 billion yuan. Public data shows that in 2010, three Ann photoelectric has received government subsidies of 700 million yuan, accounting for 60% of the net profit than in 2010; In 2011 the government subsidies of 1.829 billion yuan, net income accounted for 86%; In 2012, more than 300 million yuan of subsidies account for 60% of the net profit; The subsidies in 2013 accounted for 45.7%; In 2014 the government subsidies total about 1.28 billion yuan, subsidies for net profit ratio is still around 50%; To receive government subsidies of $89 million, 2015 to 28% of its profits often.

On January 6, 3 Ann photoelectric announcement said again, holding subsidiary company integrated circuit co., LTD. Xiamen city three Ann received xiamen torch high-tech industrial development zone management committee can pay for the special investment capital is 150 million yuan.

On June 30, three photoelectric company received three Ann photoelectric co., LTD., a wholly owned subsidiary of xiamen xiamen torch high-tech industrial development zone management committee to give 208.5 million yuan of net equipment incentives. Three Ann photoelectric co., LTD., xiamen 53 cavity (4 inches single cavity 31 models) equipment incentives all received $608.5 million.

Bdo, is also one of the beneficiaries of government subsidies. From 2009 to the first half of this year, bdo embellish of recorded into the profits and losses of the current government subsidies amount is 8.1003 million yuan respectively, 8.1003 million yuan, 310.2644 million yuan, 224.2239 million yuan, 232.0039 million yuan and 64.4308 million yuan, the accumulated into the profits and losses of the final report of government subsidies of 1.108584 billion yuan, at the same time cumulative net profit is only 856.5226 million yuan, higher than the net income for the government subsidies of 250 million yuan.

On June 23, bdo, subsidiary of bengbu three h semiconductor co., LTD., received the industrial support fund 90 million yuan. According to the regulation of accounting standards, the subsidies as part of the government subsidies related to earnings, will be directly included in the current profits and losses, so will have a positive impact on the company's 2016 annual earnings.

On June 30, HuaCan photoelectric announcement, said the company received zhejiang yiwu industrial park management committee "on HuaCan photoelectric co., LTD. Industrial development subsidies for the approval of the documents, agreed to allocated HuaCan photoelectric co., LTD. In the second quarter of 2016 industrial development subsidies of 50 million yuan.

On July 1, dry as photoelectric announcement received xiamen torch high-tech industrial development zone management committee of the seventh grant totaling 37.5482 million yuan.

In addition to the three Ann, bdo, HuaCan, dried, frequently on the photovoltaic, hon, the star light electric enterprises are all beneficiaries of subsidies. Can be said to be the instrumentality of the government support and subsidies to China's LED industry rapid development, is also subsidies "aid" make the enterprise have the ability to purchase high MOCVD equipment, have money to develop its own technology, "the more concurrently".

The government subsidy is a double-edged sword

So-called subsidies, it is to point to a government or any public institutions to domestic producers or exporters provide capital or financial incentives, including cash subsidies or other preferential treatment policies, make its products in the international market more than similar products not enjoy subsidies in a strong competitive position.

Give the LED business subsidies for government agencies to support, some people think that subsidy is beneficial to the growth of local enterprises, also some people think the government should not be too much intervention in the development of market economy. Government subsidies actually no matter for the LED lighting industry or enterprise is a double-edged sword, can support the development of industry and enterprise in a certain extent. In fact, in recent years, China's LED lighting market continues to grow, by more than 30% a year growth and rapid development. To enter in 2014, the backward traditional electric light source products, LED lighting terminal application to improve permeability; In 2015 as a result of the global economic environment, the LED lighting industry growth is slowing, entered the stage of transformation of overall integration industry.

A major cause of the LED industry development, cannot leave the vigorously support and guide the industry development of the local government, which LED the enterprise in the cruel market competition, many local governments to the enterprise procurement gave a lot of grants and subsidies, effectively accelerate the industry consolidation.

But in the long run, government subsidies to support the LED enterprises there are still some shortcomings. The United States has and filed with the WTO on China's export subsidies, that China's high subsidies make China an unfair competitive advantage market, foreign trade friction have intensified trend; On the other hand, some enterprises to greatly dependent on government subsidies, government subsidies to whitewash the actual situation of enterprise management.

To sum up, government subsidies has both advantages and disadvantages, it depends on how to grasp the scale. Well, can be used to raise their ability of innovation and production, improving the intrinsic value of the product, if improper use may also in the tide of the LED industry consolidation.