Local governments frequently push preferential policies and high subsidies to attract LED companies to settle down

A local-driven semiconductor lighting industry has emerged everywhere. Industry insiders joked that "the heat of the semiconductor industry has exceeded the heat of incandescent lamps."

Various subsidies policies have been introduced in various places, including financial subsidies and land concessions, to encourage semiconductor lighting companies, especially chip companies, to settle in.

Take Hangzhou as an example. When the relevant enterprises in Hangzhou purchase MOCVD equipment, they can enjoy the local financial subsidy of 40% of the purchase price of the equipment, and Shilanwei receives 30 subsidies. Sanan Optoelectronics settled in Wuhu Industrial Park in Anhui Province and threw out plans to purchase 200 MOCVD. The Wuhu Municipal Government stated that it would subsidize 8 million yuan for each red and yellow MOCVD purchased, and 10 million yuan for each blue and green MOCVD. Given that the international MOCVD price is about $4.4 million (about 30 million yuan) per unit, LED chip makers receive a fairly high subsidy of about 26% to 33%.

Chen Huafen, director of the Economic Development Bureau of Wuhan East Lake National High-tech Zone, and Yang Daohong, deputy director of China Merchants Group, expressed the hope that “some powerful large-scale semiconductor packaging and application enterprises will settle in the high-tech zone.” Yang Daohong said that the high-tech zone already has a high-power chip manufacturer. Source Optoelectronics, there is still a shortage of downstream companies such as large semiconductor packaging and application companies.

Different from the simple financial subsidies, Wuhan East Lake National High-tech Zone has produced a set of combination punches, hoping to expand the local semiconductor lighting industry chain. Yang Daohong, deputy director of the Investment Promotion Bureau of Wuhan Donghu National High-tech Zone Management Committee, introduced three preferential policies. First, the same high purchase subsidies as other regions, that is, MOCVD each purchase subsidy of 8 million to 10 million yuan. Second, through rewards and personal income tax, help companies attract and retain innovative high-level talents such as semiconductor lighting industry. That is to say, the qualified senior talents will be rewarded according to the 100% standard of the provincial, municipal and district level retention of personal income tax paid in the previous year. Third, with the help of financing platforms, attract enterprises to settle down. As China's second national independent innovation demonstration zone, Donghu High-tech Zone will follow the Zhongguancun Park, promote the pilot of non-listed joint-stock companies to enter the securities company's agency share transfer system (referred to as the “new three board”); and establish Optics Valley “independent innovation industry development” Fund" or equity investment fund. This will alleviate the problem of financing difficulties and high financing costs for most companies before listing.

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