Players in The LED Industry May Be Disappointed as The China Government's Subsidy

Players in the LED industry may be disappointed as the China government's subsidy for their lighting products may be much smaller than anticipated. Previous estimations put the sum of subsidy at as much as CNY8 billion (US$1.3 billion), but the latest rumors coming from China's LED lighting industry have indicated that the amount may shrink to only CNY200 million because the Chinese government will only subsidize commercial applications in the first phase. China has announced recently a plan to ban the use of incandescent light bulbs, which has been greatly welcomed by the LED industry and has sparked speculations about the sum of subsidies the Chinese government may provide. The LED lighting industry has been waiting for the subsidy to help revive demand. In Taiwan, LED firms have been asking the Taiwanese government to introduce effective LED lighting subsidy programs to encourage consumers to switch to LED light bulbs. The government has been conservative about introducing such incentives. Source: www.digitimes.com