Dongguan plans to support LED industry 500 million annually

The Implementation Rules for the Implementation of Several Regulations for the Promotion of LED Industry Development and Application Demonstration in Dongguan (Draft for Soliciting Opinions), drafted by the Dongguan Leading Group for Promoting the Development and Application of LED Industry, was announced two days ago. In the special funds, 500 million yuan will be allocated to the LED industry.

The LED industry is listed as a strategic emerging industry in Dongguan. In order to support the development of the LED industry, the “Dongguan City Implementation Regulations for the Promotion of LED Industry Development and Application Demonstration” (Draft for Soliciting Opinions) has just been issued. From LED Innovation Enterprise Certification, Special LED Technology Declaration, LED Product Certification or Testing, LED Professional exhibitions, major LED equipment purchases, high-level talents, and Other nine aspects of funding.

The implementation details define the funding conditions, amounts and methods of funding. For example, the purchase of MOCVD equipment aided the grant. According to the advanced level of equipment, the financial subsidies for each MOCVD equipment will be 8 million to 12 million yuan. The total amount of government subsidies at all levels will not exceed 50% of the purchase price of equipment, and each company will subsidize up to 60 units; the top management of LED companies The personal income tax paid by personnel and high-level technical personnel is calculated according to the criteria of 100% of the local retained portion in the previous two years and 50% of the retained portion in the following three years, and the city finance approves and grants housing subsidies.

Fang Xiahong, an analyst at Zhongyuan Securities, told Nandu that the competition in Dongguan's LED industry ranks high in the cities of the Pearl River Delta, but companies also face problems such as lack of core technology patents, dependence on key equipment and raw material imports, and so on.

At present, the core equipment and raw materials of the domestic LED industry are almost all dependent on imports. Taking a sapphire substrate as an example, the 10-year-old domestic sapphire substrate has a production capacity of about 7 million units. By the end of 2010, the number of MOCVD equipment exceeded 600 units. It is estimated that more than 30 million 2-inch substrates will be needed in 2011 as a whole. The supply gap is huge.

"But the LED industry has entered an outbreak of growth." Fang Xiahong said that benefiting from industrial policies, LED is expected to reach 500 billion yuan in domestic LED industry output in 2015, with an average compound growth rate of 33% in five years. Under this background, 500 million financial subsidies for industrial development each year will stimulate enterprises to make efforts in technological innovation.

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