How big is the influence of the Chinese LED market? You can feel it from the stock price changes of a famous company.
The day before yesterday, Citigroup analyst Timothy Arcuri announced that the local government's procurement subsidy policy for LED epitaxial wafer production equipment MOCVD may end in the first half of 2011. More than an hour later, the world's second-largest MOCVD equipment supplier Veeco's share price began to fall sharply, eventually falling 15.57%, the decline in 30 constituent stocks; and the world's largest supplier Germany AIXTRON also fell 4.18%.
The "First Financial Daily" has confirmed from the relevant persons of the Yangzhou Municipal Government that the preferential policies since last year cannot be extended indefinitely. What effect will this have?
Subsidy policy or change in the first half of next year
AIXTRON and Veeco should thank China. At least for the past few years, they have not experienced such an amazing situation. In the face of the Chinese LED boom, it is simply a bit overwhelming because the production capacity is far from enough. Some equipment will be delayed until 2012. Take a look at Veeco's third quarter earnings report. Its quarterly revenue reached $277 million, an increase of 180% year-on-year, and is expected to perform well in the fourth quarter and the first quarter of next year. The financial report showed that as of the end of the third quarter, it also had a backlog of 569 million US dollars. The performance of AIXTRON was not strong, and the second and third quarters increased by more than 200%. None of them reported in their earnings reports that their outstanding performance was mainly due to orders from the Chinese market.
From this point of view, the Chinese LED market policy is so turbulent, how can we not let them worry. "Policy can only support and catalyze. The preferential policy always has a period of application. It will be cancelled on July 1 next year." Zhang Liansheng, deputy director of the Yangzhou Economic and Technological Development Zone Administrative Committee, revealed that after the implementation of the policy in 2009, it has attracted more The home business, including Dehao Runda, etc., about 40 MOCVD equipment landed and enjoyed subsidies. Director Zhang also stressed that as long as it is registered before July 1 next year, even if the equipment procurement plan is after this, you can enjoy the policy concessions. The cancellation of preferential policies will inevitably impact the subsequent enterprises and directly transmit to the upstream equipment procurement, thus affecting the business of AIXTRON and Veeco.
Veeco China market sales people said that the Chinese LED industry is only the beginning. Because LED products are now mainly used for flat panel display, the “Ten Cities and Ten Thousand Miles†plan is more like a demonstration project. Once the semiconductor lighting in the home and public sectors is widely popular, the LED market capacity will be too large to count. However, the cancellation of the preferential subsidy policy will at least make those opportunists dissatisfied. A vice president of corporate sales in a traditional industry in the Yangtze River Delta recently revealed to the newspaper that the company is going to transform and prepare to develop the LED industry, and plans to land in Yangzhou. "We don't want any company to come in. It must have at least industry experience, technology and market background." Zhang Liansheng said that there was a shipbuilding company that wanted to enter the LED field with a transformational name, talk to them, and finally be Declined.
The day before yesterday, Citigroup analyst Timothy Arcuri announced that the local government's procurement subsidy policy for LED epitaxial wafer production equipment MOCVD may end in the first half of 2011. More than an hour later, the world's second-largest MOCVD equipment supplier Veeco's share price began to fall sharply, eventually falling 15.57%, the decline in 30 constituent stocks; and the world's largest supplier Germany AIXTRON also fell 4.18%.
The "First Financial Daily" has confirmed from the relevant persons of the Yangzhou Municipal Government that the preferential policies since last year cannot be extended indefinitely. What effect will this have?
Subsidy policy or change in the first half of next year
AIXTRON and Veeco should thank China. At least for the past few years, they have not experienced such an amazing situation. In the face of the Chinese LED boom, it is simply a bit overwhelming because the production capacity is far from enough. Some equipment will be delayed until 2012. Take a look at Veeco's third quarter earnings report. Its quarterly revenue reached $277 million, an increase of 180% year-on-year, and is expected to perform well in the fourth quarter and the first quarter of next year. The financial report showed that as of the end of the third quarter, it also had a backlog of 569 million US dollars. The performance of AIXTRON was not strong, and the second and third quarters increased by more than 200%. None of them reported in their earnings reports that their outstanding performance was mainly due to orders from the Chinese market.
From this point of view, the Chinese LED market policy is so turbulent, how can we not let them worry. "Policy can only support and catalyze. The preferential policy always has a period of application. It will be cancelled on July 1 next year." Zhang Liansheng, deputy director of the Yangzhou Economic and Technological Development Zone Administrative Committee, revealed that after the implementation of the policy in 2009, it has attracted more The home business, including Dehao Runda, etc., about 40 MOCVD equipment landed and enjoyed subsidies. Director Zhang also stressed that as long as it is registered before July 1 next year, even if the equipment procurement plan is after this, you can enjoy the policy concessions. The cancellation of preferential policies will inevitably impact the subsequent enterprises and directly transmit to the upstream equipment procurement, thus affecting the business of AIXTRON and Veeco.
Veeco China market sales people said that the Chinese LED industry is only the beginning. Because LED products are now mainly used for flat panel display, the “Ten Cities and Ten Thousand Miles†plan is more like a demonstration project. Once the semiconductor lighting in the home and public sectors is widely popular, the LED market capacity will be too large to count. However, the cancellation of the preferential subsidy policy will at least make those opportunists dissatisfied. A vice president of corporate sales in a traditional industry in the Yangtze River Delta recently revealed to the newspaper that the company is going to transform and prepare to develop the LED industry, and plans to land in Yangzhou. "We don't want any company to come in. It must have at least industry experience, technology and market background." Zhang Liansheng said that there was a shipbuilding company that wanted to enter the LED field with a transformational name, talk to them, and finally be Declined.
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