China's National Development and Reform Commission (NDRC) will subsidize procurement of 30 million LED lighting products in 2013 through open-bid competition, and major Taiwan-based LED lighting makers have been capable of volume production and are therefore expected to participate in the competition, according to industry sources in Taiwan.
NDRC for the first time offered subsidies for procuring 8.7 million LED downlights and PAR (parabolic anodized reflector) lights for indoor use and LED street lamps and tunnel lights for outdoor lighting in 2012, with 39 competitors of 113 ones winning procurement projects, the sources pointed out. China-based Kingsun Optoelectronic and Lampearl Photoelectronic were the two largest winners in terms of procurement volume and Philips was the only international winner, while all of Taiwan-based competitors failed in open bids, the sources indicated.
NDRC's 2013 subsidization will additionally include LED light bulbs as well as extend application of indoor LED lighting to government organizations, hospitals, commercial buildings, transportation stations and airports as well as that of outdoor LED lighting to roads, plazas, open space and parks, the sources noted.
Taiwan-based Everlight Electronics, Delta Electronics and Leotek Electronics have won many local governments' projects to procure LED street lamps through open bids in Taiwan, and are thought to be competitive in NDRC's open bids, the sources indicated. However, some China-based LED lighting makers have become competitive in production cost through OEM production for international vendors and, if NDRC is purposefully in favor of China-based makers, Taiwan-based makers will not have competitive advantages, the sources pointed out.
NDRC is expected to hold open bids in the second half of 2013 and finish the subsidized procurement by the end of the year, the sources noted.
