Chinese LED chip manufacturer San’an Opto is in talks of acquiring Osram group, German magazine Wirtschaftswoche reported Thursday, without indicating information sources.The acquisition talks are more than just business transacations, but reveal Chinese government's industry policies, analyzed LEDinside.

San’an Opto announced recently its subsidiary in Fujian Province, China has received RMB 170 million (US $) subsidy from Anxi County Finance Bureau to invest in LED R&D, according to a report from Quamnet.

The Chinese LED industry is very familiar with subsidies, the country’s government has offered financial support to local companies since 2009. Subsidies issued by the central government over the last six years has spurred the explosive growth witnessed in the country’s LED industry. LED enterprises all want a share in government subsidies. Listed companies in particular often covet subsidies to give their financial performance a facelift. LEDinside editor Flora Wu has ranked manufacturers that have received the most subsidies in 2015 in the following order below:

The Chinese central government recently issued a statement requesting local governments to stop issuing LED chip and wafer subsidies or offer favorable tax conditions.