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Chinese government brings forward a new wave of energy-saving policies in favor of the LED industry
As environmental protection becomes an issue of increasing concern, energy-saving policies have been brought forward continually by Chinese government. According to LEDinside, the LED industry may benefit from the RMB 4 trillion economy stimulus funds planned to be devoted before the end of 2010. And the EXPO 2010 in Shanghai will also bring out another LED demand high tide after the Beijing Olympic Games 2008.
With the luminous efficiency of LED improved and the cost cut down, the popularization rate of LED will go up substantially in the future. Despite the global economic downturn, the release of a series of relevant policies in China has promised an optimistic outlook for LED market.
Energy Conservation Regulation for State-funded Institutions had come into force in Oct. 2008 in China, prescripting that governments of all levels to bring energy-saving products and equipments into the catalogue of products subject to centralized government procurement as well as strictly monitor the energy consuming situation. In the same time, Energy Conservation Regulation for Civil Construction was also promulgated, and constructive institutes are regulated to use proper renewable energy in heating, refrigeration, illumination and hot water supply. Release of these two regulations has provided legal support for local governments to purchase LED and relevant energy-saving products. LEDinside projects that in 2009, governments and public institutions will gradually put these policies into effect and purchase large amount of energy-saving products.
Besides, the State Council has issued Ten Measures to Further Enlarge Domestic Demand and Promote Economic Growth for which 4 trillion RMB is to be injected in succession. As half of the sum will be put into infrastructure construction, LEDinside is optimistic that LED industry will benefit from this policy.
As to the development of LED industry in the provinces, in April, 2007, to support the growth of LED and solar PV industries, Fujian had issued Suggestions on How to Promote the Development of LED and Solar PV Industries(2007-2010), and had been the first province to put forward such policies. Fujian has also launched the construction of several LED and PV industry public technology service platforms, like the LED and PV electronic testing platform and application product designing platform.
In Feb. 2009, Fujian Information Industry Department specially held the Promotion Conference on LED Energy-saving Lighting Products which attracted nearly 30 major application providers and nearly 20 LED vendors in the industry. Besides, Fujian has also actively introduced investments from Taiwan and foreign photoelectric manufacturers of powerful technology in order to further complete the LED industry chain.
LEDinside points out that the development scale of Fujian LED and PV industries has jumped to a leading position in China with a production value over 10 billion RMB. The local company San’an Technology Co. has become the biggest chip and epitaxial wafer provider in China with its production taking an over 50% portion of the total state production.
In LED packaging section, Hualian Electronics has always been the leading company in mainland China, while Zhangzhou Fushun is presently one of the biggest LED display providers. With the assembling of LED industry, large-scale high prospective projects on the frontier of industry have all landed in Fujian recently, which will improve the development quality in photoelectric industry.
At present, Shenzhen is the fastest-developing LED industry center with over 700 companies dedicated to technology development, manufacture and application of semi-conductor illumination and the production value of around 15 billion RMB. It is also the largest production＆supply base of solar energy LED lamp and LED display, an important production＆supply base of LED backlight in the world, and a major area of LED packaging and industrial speciality illumination production in China.
However, LEDinside also said that the LED industry in Shenzhen has comparatively weaker high-end chains and inadequate capacity in technology innovation, leading companies are also yet to be formed. Therefore, the relevant governmental departments of Shenzhen have drafted Shenzhen LED Industry Development Plan(2009-2015), Implementation Plan on Demonstration Projects to Promote High-efficiency Energy-saving LED Lighting Products, Construction Scheme of Shenzhen LED industry Public Technology Service Platform, Several Measures on Promoting the Development of Semi-conductor Illumination Industry, Research on Guangming LED Industry Assemble Park Scheme and Implement Suggestions, Proposal on The Preparatory Work for LED International Trading and Pursuing Center, etc. And these policies will come out recently.
According to Shenzhen LED Industry Development Plan (2009-2015), in 2010, Shenzhen will strive to become an influential international LED industry colony, with an estimated annual production value of above 28 billion RMB; and in 2015, to become an important demonstration base for LED industry technology innovation in China and important LED product development production base in the world, with an estimated annual production value to be above 130 billion.
According to Implementation Plan on Demonstration Projects Promoting High-efficiency and Energy-saving LED Lighting Products, the first batch of LED lighting product demonstration projects will be launched in 2009, with certain amount of allowance being granted by the city government to the companies undertaking the project. And the upstream, middlestream and downstream local LED products having energy-saving efficiency of more than 50% will be listed into the product catalogue of government procurement.
Recently, Guangdong Jiangmen Information Industry Department has also promulgated Suggestion on Government Procurement of Green (Semi-conductor) Lighting Products, with the purpose of leading the consumption of energy-saving lamps by the purchase of governmental institutions to promote the development of the industry and meanwhile call for the society to save energy and reduce carbon emissions.
LEDinside points out that the photoelectric industry in Jiangmen has developed quickly, with the total production value of the semi-conductor lighting industry surpassing 3.2 billion RMB in 2008. There are more than 100 companies relevant to semi-conductor lighting product, and 21 large companies represented by Heshan Yinyu Light-decoration Ltd. (Zhen Ming Li Group) are now forming a complete industry chain from chip manufacturing, packaging of up- and middlestream to the supply of various lighting products.
In 2009, Jiangmen will enforce the policy to promote an estimated 100 thousand government subsided energy-saving lamps all over the city, said Ye Hailing, the deputy head of the Industry Administration＆Technology Office in Jiangmen Information Industry Department. This government plan is expected to lead the civil to follow up the consumption and will be of much benefit for the development of green (semi-conductor) lighting industry.
Guangdong has begun replacing the original street lamps with LED ones in large scale in Dongguan as the first spot, and plans to realize in 2 years the 100 Thousand LED Street Lamps along One Thousand Miles Plan in Guangdong, Dongguan, Foshan, Zhaoqing, Zhongshan, Shantou, etc.
Except for the energy-saving purchase plans of the governments, with the EXPO shanghai, Guangzhou 2010 Asian Games, Jinan 11th National Games and Shenzhen 2011 Universiade soon to be held in China, the LED street landscape illumination and large LED advertisement displays needed in these events will start to call for bid in succession and will have an inspiring influence to the LED industry.
