Reuters reported that the overcapacity and price declines for a large number of chips make manufacturers of panel display for Samsung TV panel and Sharp in trouble. Only those manufacturers of large-scale or government support may be spared.Analysts said this year's global television / computer market downturn will make the price of the LED chip further decline, by as much as 20%. The small LED chip manufacturers are affected by this, perhaps only to bankruptcy or merge,but with the market capitalization of $ 2.8 billion ,An electro-optical and BDO Runda and other large companies will benefit from continued government subsidies and incentives,they do not need to worry about the survival problem.Japan's largest brokerage, Nomura Securities's analyst ,AnneLee thinks this is the Chinese Government's strategy: to keep the large enterprises in the industry reshuffle. For most of the LED chip companies, the Government is recovering the incentives during the previous three years, including tax breaks, free land and the cash which is more than 1.6 billion U.S. dollars for the purchase of production equipment. |
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Half Of China's LED Chip Manufacturers Will Go Bankrupt