Yangzhou City, which is committed to building a 100 billion yuan LED industry base, has recently introduced a new policy. The company purchases a special production equipment for epitaxial wafers MOCVD with a financial subsidy of 10 million yuan. On the afternoon of the 19th, the reporter saw in Yangzhou Zhongke Semiconductor Lighting Co., Ltd. that under the large financial subsidy, the company has purchased 6 MOCVD, which is said to increase to 11 by the end of the year.
In Yangzhou, as with Zhongke Semiconductor, it is subsidized by the government, as well as semiconductor lighting manufacturers such as Sunshine, Yanyang and Zhenmingli. In order to achieve a major breakthrough in the upstream key technologies, Yangzhou City and District Finance will provide 1 billion yuan support fund to special subsidies for MOCVD. By the end of the year, MOCVD will have 50 units, and by the end of next year, 100 units will be formed. It is said that this will greatly enhance the production capacity of the epitaxial wafer.
Epitaxial wafer production is a hurdle for the LED industry. In the LED industry chain, epitaxial wafers and chips account for 70% of profits.
One billion yuan invested in 100 machines, is it worth it? In addition to improving the industrial chain, Yangzhou decision-makers have also calculated an economic account: although one machine subsidizes 10 million yuan, it can directly form 20 million after putting into production. The annual output value will drive the relevant industrial chain to form an output value of 200 million yuan; thus, 100 machines will form an industrial cluster of 20 billion yuan around the epitaxial wafer.

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