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The government heavily subsidizes LED companies
The LED lighting financial subsidy promotion project includes indoor and outdoor lighting products. Among them, indoor lighting products are divided into two segments: LED downlights and reflective self-ballasted LED lights; outdoor lighting products are divided into two sections: LED street lights and LED tunnel lights.
The result of the successful bidding showed that a total of 183 models of 39 LED companies won the bid and received financial subsidies. Among them, indoor lighting products LED downlight segment and reflective self-ballasted LED lights have 15 companies shortlisted, outdoor lighting products LED street lights, LED tunnel lights two package sections have 25 companies shortlisted.
In the financial subsidy promotion project of LED lighting products, the winning bidders of each short-listed company are all under 10 models. Shenzhen Zhouming Technology Co., Ltd., Jiangsu Shifu Photoelectric Co., Ltd., Guangdong Dehao Runda Electric Co., Ltd. and other three companies have 10 model products; Dongguan Qinshang Optoelectronics Co., Ltd., Shanghai Yaming Lighting Four companies, including Zhejiang Sunshine Lighting Electric Group Co., Ltd. and Xiamen Donglin Electronics Co., Ltd., have 9 finalists, of which Dongguan Qinshang Optoelectronics Co., Ltd. has a total of 470,000 semiconductor lighting products in 2012. Ranked first.
Financial subsidies benefit the entire industry chain
After the successful bidding of the products, Foshan Guoxing Optoelectronics Co., Ltd. and Dongguan Qinshang Optoelectronics Co., Ltd. both announced that the winning bidding for semiconductor lighting products will further consolidate and enhance the leading position of enterprises in the domestic LED application field. Promote the company's domestic sales play an active role.
According to Zheng Tiemin, general manager of Inspur Huaguang Optoelectronics Co., Ltd., including the “Ten Cities and Ten Thousand Miles†project initiated by the Ministry of Science and Technology in 2009, the relevant departments have successively issued a number of policies to support the development of the LED industry, to promote China's LED products. Market promotion has played an important role. At the same time, it has an important impact on the entire LED industry chain.
Zheng Tiemin believes that the subsidy policy jointly issued by several ministries and commissions of the country is, on the surface, a subsidy for end products, and actually has a pulling effect on the entire industrial chain. Taking Inspur Huaguang Optoelectronics Co., Ltd. as an example, a total of 150,000 indoor LED lighting products have received financial subsidies for two models, and the performance of the branch products of Inspur Huaguang production terminal LED products will be significantly boosted. At the same time, as Inspur Huaguang's business involves the entire LED industry chain including upstream epitaxial wafers and chips, the government's subsidies will allow LED manufacturers to further expand the market, thereby increasing the demand for raw materials.
"In fact, the state subsidy policy affects not only more than 100,000 products," Zheng Tiemin said.
Technological innovation is the key
Although it fully affirms the importance of government subsidy policies for the LED industry and related enterprises, the heads of LED companies still emphasize that to reduce the price of LED products, it is ultimately necessary to rely on the technological innovation of LED companies.
For example, Zheng Tiemin analyzed that most of the LED products produced in the past can only achieve 60 lumens of light. Now most of the LED products produced by the company have a luminous efficiency of 130 lumens, and the luminous efficiency has been doubled. The price is the same as the original price. It has fallen by half. Therefore, the most important thing to reduce prices is to rely on technological innovation.
In addition, the decline in LED costs depends on the substantial decline in raw material prices. Qiu Huanguo, senior manager of Qinshang Optoelectronics International Business Department, said that from the perspective of LED industry chain, the most important factor affecting the price of LED terminal products is the price of LED chips, which is the market price of upstream products in the industrial chain. Upstream companies tend to account for 70% of the industry's profits, while the middle and lower reaches together account for the remaining 30% of profits. In particular, the core material LED chips used in LED lighting products, the chips of most LED lighting products in mainland China are mainly imported from the United States, Japan and Taiwan, while the Chinese mainland enterprises mainly gather in the middle and lower reaches of the package and application. field.
Zheng Tiemin said that with the increase of downstream LED manufacturers, raw material manufacturers will increase, and the choice of downstream manufacturers will increase. Raw material manufacturers are in a competitive environment, and raw material prices will naturally fall.
"Through technological innovation and lower raw material prices, LED prices will fall sharply. In 2010, a 10 watt bubble lamp will be sold for 120 yuan, and now only 40 yuan, and some even only 20 yuan." Zheng Tiemin said.
(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.) 
The government has greatly subsidized the LED enterprises to make breakthroughs in domestic LEDs.
Due to the high price, the marketing of LED lighting products has been hindered. Not long ago, the Ministry of Science and Technology, the National Development and Reform Commission and the Ministry of Finance jointly organized the 2012 financial subsidy semiconductor lighting promotion work, aiming to reduce the cost of semiconductor lighting products through subsidies, thereby accelerating market promotion. However, industry experts believe that neither the enterprise nor the local government can use subsidies as the only means to develop semiconductor lighting, because the types of enterprises and products that can receive subsidies only account for a small part, and it is necessary to rely on technological innovation to occupy the market.