Shenzhen suddenly abolished LED industry development plan

Without any explanations and reasons, the Shenzhen Municipal Government suddenly abolished an industrial development plan that was being implemented. In mid-March this year, Shenzhen Municipality abolished the "Notice on Printing and Distributing Shenzhen LED Industry Development Plan (2009-2015)" issued in March 2009 in the form of "Government Gazette".

Shenzhen LED industry was once synonymous with LED in China. This time, the planning of the abolition of planning has made many people in the industry feel that this industry has been abandoned by the government and caused many conjectures. Chai Guangyue, director of the Department of Optoelectronic Science and Technology at Shenzhen University, said that the LED in Shenzhen is still the largest in the country, but the development speed has lagged behind. It is recommended that the government pay attention.

Why is it abolished?

The abolished "Planning" proposed to build Shenzhen into a national and even globally important LED industry R&D and production base, and set a development target of an annual industrial output value of more than 130 billion yuan by 2015. "This is the first LED industry planning in the country. Many of the relevant plans formulated by many cities are based on this," said Yan Shirong, president of the Shenzhen LED Industry Association.

Why is the "Planning" that is so promising for LED prospects suddenly abolished? In this regard, Ruan Shirong said that the main reason given by the Municipal Development and Reform Commission is that some of the policies proposed in the "Planning", especially the financial and industrial support policies, do not need to use this "plan", other aspects are involved, "Planning" Some are superfluous.

Feng Jun, 43 years old, is the owner of Shenzhen Eite Lighting Co., Ltd. He believes that this cannot completely blame the government, because even today, few LED companies in Shenzhen have done a particularly large amount, with an output value of over 100 million. There are not too many enterprises, and the development of Internet or biological and other emerging strategic industries identified by Shenzhen, a project has exceeded 100 billion yuan. "In such an industry, in Shenzhen, where land resources are so tight, it is obviously the government that does not look good."

Overcapacity?

Some officials have revealed in private that perhaps the government is terrible or helpless. The entire LED industry has actually experienced overcapacity and even worried that the LED industry will become the second photovoltaic industry.

The LED industry in Shenzhen began in the early 1990s and developed rapidly. The enterprises accounted for nearly half of the country. Shenzhen took the lead. Many other local governments came to Shenzhen to “grab” LED companies to develop them. Many LED companies went out of Shenzhen and expanded. The whole industry was very impetuous and obviously overheated, but many companies were not satisfied with the local government policy. If it is not honored, the capital chain will go bankrupt.

Feng Jun believes that when the swarm of bees went up, it happened that it was not long before it encountered the economic downturn in Europe and the United States. At the same time, the Shenzhen government’s support for the industry was “thunder and rainy,” and the whole industry lost its way.

Influence geometry?

Suddenly announced the abolition of the "Planning", the Shenzhen LED industry that originally "experienced the storm" will definitely bring about obvious pessimism. Feng Jun said that the LED industry in Shenzhen was extremely difficult to develop last year. Many enterprises have closed down or moved out. This is in stark contrast to the overheating phenomenon in previous years.

However, after 2012, Qi Shirong and Feng Jun both saw the opportunity. They believe that the integration, elimination and merger of the LED industry in Shenzhen may become more intense this year. Good differentiated products will have more market. Although Shenzhen has cancelled the “Planning”, Guangdong Province still ranks the LED industry as one of the three emerging strategic industries, and overall the policy environment is still positive.

Glossary

LED: Short for LIGHTEmitting Diode, which is a light-emitting diode. LED technology is one of the most promising high-tech fields in the world in recent years. The judgment made by the "Planning" is that "semiconductor lighting based on LED technology has the characteristics of high efficiency, energy saving, environmental protection, long life and easy maintenance, which will lead to a new light source revolution."

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