LED lighting industrial should not only be given light subsidies for downstream

LED lighting industrial has developed rapidly in this two years. LED lighting, LED screens and other projects appeared everywhere. Eneltec group is to do the research and development of LED products chips, which is the core aspects of the LED industry. Faced with such situation, eneltec has a little bit unhappy.

Others will feel very strange, Is the policy not to encourage the development to LED industry? Many local governments have a subsidy policy of the LED lighting industrial. If the industry developed well, a chip development market will develop fast. While Eneltec think that the present subsidy policy did not play a good role in guiding the development of core technology.

Currently, government subsidies are often directly to the downstream production enterprises. The status of Chinese LED street light industry development is that each manufacturer of its core products are imported. Originally domestic chips have price advantage, while if government to have subsidy to manufacturer, it offset the high cost of imported chips, and more subsidies for downstream companies less to buy our homemade chips. What’s more, in some places when government purchase, bonus points, which further reduces the possibility of manufacturers with domestic chip.

The chip is the core of the LED lighting industrial, only did the chips do well, there is hope. Or the bulk of profits are took away by the chip makers, while China just earn a processing fee. The reason is very simple. Otherwise, local Chinese even is difficult to earn a processing fee, because a lot of foreign LED chip manufacturers.  such as Cree companies have already begun development for the lighting terminal. Mainland manufacturers abroad will find that he is competition with their own suppliers, and the bulk of the profits should give it to suppliers. How can we compete with other people?

When an industry separate the middle and lower reaches, the downstream manufacturers will get more subsidies, and it is often not conducive to the development of the upstream business. Chinese subsidies should complement more to LED panel local core studying. Government should, throught the development of certification standards, to protect their core technology development.