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Mainland China's Extended Subsidization Program Estimated to Benefit Taiwan's LED Makers

2012/02/24 | By Ken Liu

Taipei, Feb. 24, 2012 (CENS)--Mainland China's second phase of its subsidization program for the LED lighting industry is expected to give a boost to Taiwan's LED manufacturers considering that it will cover more product categories and supply sources than done in the first phase.

The upcoming subsidization program will cover tunnel lights, streetlights and light bulbs as well as overseas suppliers, in addition to indoor lights and the mainland's suppliers included in first phase program.

Taiwan's manufacturers specializing in these products include Delta Electronics Inc., Epistar Inc., Bright LED Electronics Corp., ENG Electric Co., Ltd., Genesis Photonics Inc., Ledtech Electronics Corp., Unity Opto Technology Co., Ltd., Edison Opto Corp., and Epileds Technology Inc.

Delta is good at LED light bulbs, which are the major LED lighting products it has been contracted to supply to Hitachi. The company recently yielded an optimistic forecast that its shipments of the light bulbs will double this year mostly thanks to brisk demands for the light bulbs in Japan since the March 11, 2011 earthquake.

Like many of its industry peers in Taiwan, ENG enters the LED lighting industry using its expertise in power supply manufacturing.

Edison has won much share of the mainland's market for LED streetlights. The company expects more LED streetlight contracts from public-work projects in the mainland this year.

Epileds was recognized as the most profitable LED chipmaker in Taiwan mostly thanks to the mainland's ambitious LED lighting policy. The company plans to develop lighting products in pursuit of the lucrative market created by the second-phase program.

Genesis, Ledtech, and Unity have entered into alliance with China Potevio Co., Ltd., making them the prime candidates for the mainland's subsidization programs thanks to business tie with one of the mainland's IT heavyweights. Their LED lamps are now available at Suning Corp.'s 1,040 shops throughout the mainland.