China's policy support for LED lighting industry

    China's policy support for LED lighting industry Energy-saving and environmental protection is the first of the country's "12th Five-Year Plan" strategic emerging industries, and LED lighting is one of the most important components of energy conservation and environmental protection. The increasing electricity prices and the drive to prohibit incandescent incandescent bulbs worldwide have led to an increase in demand for LED lighting. At the same time, as technology continues to improve and mature, the decline in the cost of LED lighting has created opportunities for China's LED lighting market. Therefore, China LED lighting is about to usher in the booming period of the market. From a global point of view, the development of LED lighting industry can not be separated from the policy support, China is no exception. Since 2003, the Chinese government’s support for the energy conservation and environmental protection industry has also provided a driving force for the development of China’s LED lighting industry. Here we look at the development of the domestic LED lighting industry with the support of domestic policies for the LED lighting industry.

    Initial period 2003-2008

    The LED industry began to bred many LED packaging companies to establish and operate. The LED industry broke out for the first time, mainly in packaging companies, with fewer chip companies and low added value.

    Policy background

    In 2003, the Ministry of Science and Technology initiated the National Semiconductor Lighting Research Program.

    In the second two years of the fifteenth year, the state allocated 80 million yuan as guidance funds to focus on semiconductor lighting.

    In 2006, the State Council, the National Development and Reform Commission, and the Ministry of Science and Technology formally announced the semiconductor lighting plan.

    In 2007, the Ministry of Finance reduced taxes for LED companies.

    In 2008, the National Development and Reform Commission and other governments began purchasing LED lighting products.

    Growth period 2009 - 2010

    Numerous upstream companies have started operations, and investment hot spots have focused on upstream chip links. The second outbreak of the LED industry concentrated on chip and vertical integration, and the chip has excess capacity.

    Policy background

    In 2009, the Ministry of Science and Technology launched the Pilot Project for Lighting Applications of Ten Thousands of Ten Thousand Semiconductors. A total of 21 cities across the country were selected as pilot cities.

    The Yangzhou City government subsidizes the purchase of MOCVD. Local governments have stepped up efforts to support the LED industry and subsidize the purchase of MOCVD.

    Low-end product maturity period
    2011 to date

    Industry integration and cooperation focus on downstream applications of LED and distribution channels. The competition in the LED general lighting industry is becoming increasingly fierce. Domestic and foreign companies are actively laying out the Chinese market.

    In 2010, China's LED general lighting output value reached 19 billion yuan, and the compound growth rate in the next five years is about 33%.

    Overseas companies such as Philips, Osram, GE, Kerui, and Nichia have actively explored the Chinese market.

    In the fields of chips, packaging, and applications, there have been a number of leading companies such as Sanan Optoelectronics, Taiwan Jingyuan Optoelectronics, Qinshang Optoelectronics, and NVC Lighting.

    Policy background

    Industry integration and cooperation The Yangzhou City government's subsidies for MOCVD were terminated in July 2011, and other cities did not have a termination statement.

    On May 16, 2012, the State Council decided to allocate 2.2 billion yuan in subsidies to support the promotion of LED lights and energy-saving lamps. Subsequently, cities such as Qingdao, Foshan and Dongguan have successively launched consumer subsidies for the civilian LED lighting market. Market application is about to enter the era of LED general lighting.

    China's LED lighting industry has achieved rapid development. It has made breakthroughs in several key indicators of LED lighting technology, and formed an industrial cluster focusing on the three major regions of the Bohai Sea, the Yangtze River Delta, and the Pearl River Delta, with a number of outstanding LED lighting business. However, compared with leading LED lighting companies in the world, China's lighting companies currently have relatively weak core technology research and development capabilities, patent barriers, and lack of LED lighting industry standards. All these have restricted the rapid development of China's lighting industry.

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