China's 12th Five-Year Plan has begun and Guangdong province has announced that in three years, all lighting in public areas will be switched to LED across the province. The output value of the province's LED lighting industry is likely to reach CNY500 billion (US$78.5 billion) by the end of the 12th Five-Year Plan period.
Industry sources said that the Guangdong provincial government will "strongly encourage" energy management contract (EMC) to promote the use of LED lighting. Local LED firms are likely to benefit the most. In particular, Kingsun, a domestic firm, has 50% of Guangdong LED street lamp market share. The firm's 2012 revenues are likely to reach CNY1.5 billion. Epistar, Formosa Epitaxy, and Lextar are all LED chip providers for Kingsun. Furthermore, Taiwan-based firms such as Delta, Everlight, and Lite-On have set up plants in Guangzhou, a city in Guangdong province.
China's LED street lamp market has been growing at a speed incomparable to other markets. Various incentive policies have been attracting Taiwan-based LED firms to enter the market. Nevertheless, due to protectionism, the effects of the policies have not been as significant as expected, causing disappointment on the part of Taiwan-based firms.
Kingsun indicated that shipments of LED street lamps in 2011 reached 100,000 units and expects the figure to grow to 150,000-200,000 units in 2012. The firm will also provide LED indoor lighting. Kingsun believes with the policies, China's LED lighting market will grow by 30-50% in 2012-2013.
Jiangsu and Zhejiang provinces are likely to follow suit with LED lighting policies, said industry sources.
Delta may benefit from Guangdong province LED promoting policies
