The president of Jingke Electronics said that others will feel very strange. Isn’t the policy now encouraging the development of the LED industry? Many local governments have subsidies for the LED industry. This industry has developed well, and the market for chip research and development is naturally big. He believes that the current subsidy policy has not played a good guiding role in the development of core technologies.
At present, government subsidies are often directly given to downstream production companies. The current situation of the development of China's LED industry is that the core products of each manufacturer are basically imported. Originally, the domestically produced chips have a price advantage, and the government subsidizes the production enterprises, which offsets the high cost of imported chips. The more subsidized downstream enterprises, the less they buy our domestic chips. What's more, some places have added points to products using imported chips when the government purchases, which further reduces the possibility of manufacturers using domestic chips.
The president of Jingke Electronics pointed out that the chip is the core of the LED industry. The chip has a good hope in this industry. Otherwise, the profit is taken away by the chip manufacturers. China only earns a processing fee. This is very simple. Otherwise, even the processing fee will not be so good in the future, because many foreign LED chip manufacturers, such as Cree, have begun to develop for lighting terminals. After the domestic manufacturers go abroad, they will find that they are competing with their own suppliers, and the profits from the competition will be given to the suppliers. How can this compete for people?
The separation of the middle and lower reaches of an industry and the subsidies of downstream production enterprises are often not conducive to the development of upstream enterprises. Subsidies should be added to the core of R&D. The government should protect the development of its core technologies by establishing certification standards.
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