Jan 7, 2016: HC Semitek will invest US $915,625 in setting up a new LED epiwafer, chip and production line in Yiwu Industrial Park, says a China Securities report. This expansion will strengthen HC Semitek?s LED supply chain integration, and enhance its developments in the LED industry.
HC Semitek has signed a pact with industrial park officials to set up the 2,333.34 acres fab, and would acquire construction permits within the next five years. The two companies also agreed to jointly set up an acquisition fund, which will enable HC Semitek to merge other companies in the LED industry to form an integrated LED supply chain in the future.
Under the pact, the industrial park management committee will give HC Semitek about RMB 400 million in R&D subsidies, and RMB 1.2 billion preferential loan for a period of eight years. This is roughly equivalent to footing 20% of the LED project bill.
The industrial park?s management committee is also setting up an international LED manufacturer production base, which will spur the integration of LED upstream to downstream industries, and attract them to congregate in Yiwu Industrial Park, which, in turn, would improve the park?s structure and quality.
The recent subsidies will help the LED industry to upstream to downstream integration, and help the company?s economics of scale and cost advantages. These subsidies will also improve the company?s core competitiveness and influence in the industry.