In addition to subsidies, the state with respect to tariffs of the LED industry also carried out relief. In March of this year, China’s Ministry of Finance, Industry and Information Technology, Ministry of General Administration of Customs and State Administration of Taxation four ministries jointly issued “Notice on the adjustment of the major technologies and equipment import tax policy directory in tariffs and import link value-added 28 new major technologies and equipment in the adjustment of the tax directory, outdoor LED landscape lighting equipment to become one of the plates benefit the most obvious of the three emerging industries. Selected countries to support the development of major technical equipment and product directory (2012 Amendment) of the semiconductor light-emitting diode (LED) production equipment for the new class of equipment. In accordance with the provisions of the “notice”, since April 1, LED three types of equipment imported parts and components duty-free, which means that the localization of the outdoor LED landscape lighting devices, independent innovation will be possible. Chinese Academy of Sciences, Institute of Semiconductors, researcher Wang Zhanguo pointed out that if they can use China’s own manufacturing equipment, the cost is expected to gradually reduce the cost of the product can be improved.
The conditions of the various manufacturers of low capacity utilization rate, the 2011 LED chip supply is still as high as 174 billion chip demand of only 129 billion, the oversupply ratio is as high as 35%, so the second half of most LED high bay manufacturers face huge inventory adjustment pressure. Moreover, there are more MOCVD machine capacity cannot yet fully released, the situation of oversupply in 2012 will intensify, CD-patent threshold and high-tech manufacturers. The situation of oversupply in 2012 is difficult to solve in the short term, but the LED end-market demand continued rapid growth in 2012 will depend on the individual company performance into the bigger the elimination contest.