Mainland China Likely to Enlarge LED Lighting Subsidization Coverage

Mainland China is likely to enlarge LED-lighting subsidization coverage, including not only more product items but also more supply sources, according to deputy sectary general of China Solid State Lighting Alliance, Tang Gouquin.

Tang made the statement yesterday at a forum held in Taipei addressing LED industry.

He said the mainland's authorities would announce details of the subsidization plan before long. This is the mainland's second phase of the subsidization initiative for LED-lighting consumptions, aiming to subsidize over 10 million lamps this year. Some 10% of the number was subsidized in first phase of the project.

In the upcoming implementation of the second stage, added products will include streetlight, tunnel lights, and light bulbs, an extension from indoor lighting covered in first phase.

Tang pointed out that the subsidization will be extended to suppliers from other places than the mainland as long as they are certified with the mainland's CQC approval. In this case, Taiwan's suppliers, including Delta Electronics Inc., Epistar Inc., Everlight Electronics Co., Ltd., Unity Opto Technology Co., Ltd., Edison Opto Corp., Bright LED Electronics Corp., Epileds Technologies Inc., Lextar Electronics Corp., and Ledtech Electronics Co., Ltd., are expected to enter into the supply chain.

Unity Chairman Alpha Wu pointed out that one of the mainland's partners has applied for CQC certification in preparation for the second-stage implementation of the plan.

Episar, which won the subsidization in the first-stage implementation of the plan, has entered into alliance with many mainland Chinese lighting-fixture manufacturers. The company projects its LED lighting sales to account for 30% of its total revenue of this year, partly thanks to sales in the mainland.

LED packager Edison pointed out that sales of its LED lighting modules will surge to account for 35-40% of its revenue for this year also partly thanks to the mainland market.

Tang noted that the mainland had designated LED as one of the mainland's seven strategic industries urgently needed to be developed. He noted that the mainland's National Development and Reform Commission has been working with other mainland Chinese ministries over the measures of banning incandescent bulbs in line with the LED lighting plan.