Trade Resources Industry Views China's Policy Will Not Only Benefit Domestic LED Firms, But Also Taiwan-Based Peers

China's Policy Will Not Only Benefit Domestic LED Firms, But Also Taiwan-Based Peers

China's policy will not only benefit domestic LED firms, but also Taiwan-based peers, such as Delta, Bright LED and Lite-On, industry sources have noted. The firms who are eligible to compete for projects need to be registered in China and have the abilities to design and manufacture. In addition, the registered capital should be higher than CNY50 million (US$7.94 million) with annual capacity of LED street lamps and tunnel lamps above 30,000 units. Furthermore, the firms' annual capacities of LED tube lights and parabolic aluminized reflector (PAR) lights cannot be lower than 200,000 units. These requirements keep out small- and medium-size LED firms at the first stage. The China government plans to expand subsidies for tunnel and street lamps. The estimated subsidies will cover more than 10 million units of lamps, said industry sources. The projects currently up for grabs will likely provide actual revenue injections for the firms, added industry sources. Compared with the Eco-Point program of Japan providing subsidies directly to consumers, China's policy is indirect. The subsidies will be given to firms that are responsible for the projects. The firms will then figure out product prices to sell to end users. Source: www.digitimes.com

Source: http://www.digitimes.com/news/a20120229PD211.html?mod=2
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Taiwan LED firms to benefit from China subsidies
Topics: Lighting