Whether the Chinese government or Chinese companies, like to mention a "strategic industry", because of strategic industries are very important industry for the country, they are often able to get the support of national resources.
It has been revealed, the SAC's leading LCD panel ready to rescue loss-making enterprises BOE. According to media reports, is ready to hand under the jurisdiction of the SASAC China Electronic Information Industry Group. However, itplans to acquire the BOE, although China's LCD panel industry's leading enterprises, it is a continuous loss leader for many years! BOE recently releasedthird quarter 2011 financial results, the first three quarters of 2011, BOE net profit -21.43 billion.
China Electronic Information Industry Group for the loss seems to not care, the SAC is that a strong boost from the acquisition of those. Promote China'sElectronic Information Industry Group layout of the whole industry chain, become the industry leader, bigger and stronger state-owned enterprises is the SAC's goals.
BOE has many years of follow-up study to its domestic think tanks over the nextconclusion: It is difficult to profit enterprises. BOE had walk a fine line is busy for thefinancing. BOE adopted strategy is: the LCD panel industry promoted as the national strategic industry, in order to borrow money from the state-owned banks,and to seek government support. Since then, the central enterprises will want tocontinue to burn this big burden.
In fact, in the semiconductor industry, China is also the case, the leading local semiconductor burn SMIC is also a large, but the profit is extremely difficult. If China's strategic industries like semiconductors and LCD panels are the same, it will be China's financial burden.