LED chip manufacturers will bankrupt

Analysts say the Chinese half of the LED chip manufacturers will bankrupt
With the decline in the price of Chinese number TV,solar panel dab4c51ck as Samsung and sharp production LED chip company faces dilemma. Analysts pointed out, the oversupply problem will lead to the half of enterprise bankruptcy, but larger, have the government support the company can continue to live.
A small company or go bankrupt
Global television and computer sales landslide may further influence LED chip price, this kind of chip will be up to20% price. For Chinese small LED chip companies, to be integrated or bankruptcy would be the only choice.
But analysts point out, market capitalization of $2800000000photovoltaic San'an and Guangdong BDO 润达will is one of the few to survive the company, because the company access to the Chinese government subsidies or incentives. Nomura Securities analyst Annie Lee ( Anne Lee ) said:" this is China 's strategy. They hope the largest company in the industry recombines survived."
For most of China's LED chip companies, government support is gradually withdraw from. These include support for tax cuts, free land use, as well as for the purchase of LED chip production equipment more than $1600000000.wholesale baby shoes These initiatives in the past 3years to support the development of the industry of china.
And apple trademark dispute occurred in Shenzhen ( micro-blog ) by LED chip prices decline, the increasingly fierce market competition effect. Other affected companies include Hangzhou Silan microelectronics and Foshan country stars such as photoelectric. Summit microelectronics and country star in the past 1 years shares fell more than 30%.
Industry observers have noted, many LED chip factory operating rate is only 50%. From 2009 to2010, through government subsidies to purchase about 700production lines, about half of the current in the idle state. According to the analysts said, in the past year, the problem of excess production capacity in China hundreds of small LED enterprise bankruptcy.
Shenzhen LED Industry Association Deputy Secretary-General Bao Enzhong said:" China financial policy does not give enough support to small and medium-sized enterprises. We will see more business failures."
Large enterprises obtain high subsidies
With government support, in 2011 China Manufacturers in the global package LED components market share reached 6%, up from 2% in 2010. An optoelectronic said in 2011, the company's net profit doubled, to 936000000 yuan, the company obtained in 20111900000000 yuan subsidy. BDO 润达2011 net profit growth to 392300000yuan.
Analysts pointed out, these large LED enterprises a total holding nearly 2000000000 yuan of cash, so it can be in market growth slowdown continues to expand production capacity, resulting in the government to support the LED project to gain more share.
UBS said in a report, BDO 润达has added 50for the production of LED chip by metal organic chemical vapor deposition ( MOVCD ) equipment, and this year will increase 100. An optoelectronic also plans to increase the number of devices.
China Science and Technology Ministry said earlierpersonal computer remote, plans to 2015when the Chinese LED industry dimensions expands to 500000000000yuan. Analysts pointed out that in 2011, China, the industry scale is 31000000000yuan, and the industry integration has become a pressing matter of the moment.
The weaker the bankruptcy of the company will be conducive to a larger scale, the support of the government in the development of LED company, the company in the international competition to gain certain advantages. Other Asian major LED companies including Taiwan Sony and South Korea LG Innotek.