local governments are considering following the same policy

However, under the circumstances that various local governments followed suit to attract business investment, excess equipment investment intensified the concern of oversupply in the LED industry. Not only has the Chinese Central government been aware of this phenomenon, the financial resource of local governments will deplete gradually. Therefore, Yangzhou has announced that MOCVD fiscal subsidy policy will end in July in 2011, indicating that in order to receive equipment subsidy, manufacturers are required to complete the installation of MOCVD equipment before July 2011. Moreover, other local governments are considering following the same policy.

Generally speaking, the process of MOCVD equipment installation in China in 2010 was slower than expected. Apart from the delay of plants establishment, the oversupply in the latter half of this year also made most led high bay light adopt a wait-and-see attitude. Therefore, to stimulate investment among LED enterprises, several local governments had to specify an end-date in their fiscal subsidies. Therefore, LEDinside expects LED enterprises to install MOCVD equipment before the subsidy deadline, which may lead to another wave of aggressive MOCVD equipment purchase in the first half of 2011.

In the US market, SAS has started a new wafer fab recently, which was expected to produce 300,000 6-inch equivalent wafers. The company estimated US semiconductor wafer business would contribute about LED Linear high bay light to revenues in 2011.But in the solar-grade silicon wafers, the company planed to slow expansion at its production facilities in 2011, which resulted from uncertainty over government subsidies and a more cautious market outlook.