Financial subsidies favor LED industry chain In the light bulb shopping area of ​​the supermarket, Xiaowang picked up an ordinary energy-saving lamp and a semiconductor lighting (LED) lamp with his left hand and right hand, respectively: it can also achieve the lighting effect of 25 watts. The ordinary energy-saving lamp with the left hand only costs 9.5 yuan, while the right hand holds LED lights will be 37 yuan. Although he knows that LED lamps are more power-efficient and have a longer service life, Xiao Wang eventually chose a cheap energy-saving ordinary energy-saving lamp.

Most ordinary consumers nowadays tend to make the same choices as Xiao Wang. 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 and promoted the financial subsidies for semiconductor lighting promotion in 2012, aiming at reducing the cost of semiconductor lighting products through subsidies and accelerating market promotion. However, industry experts believe that neither the enterprise nor the local government can regard subsidies as the only means to develop semiconductor lighting, because the companies and product types that can receive subsidies only account for a small part, and they must rely on technological innovation in order to occupy the market.

The government strongly subsidizes LED companies

The LED lighting financial subsidies promotion project includes two types of indoor and outdoor lighting products. Among them, the indoor lighting products are divided into two package segments of LED downlights and reflective self-ballasted LED lights; outdoor lighting products are divided into two package segments: LED street lights and LED tunnel lights.

The result of the successful bid entry showed that a total of 183 models of 39 LED companies won the bid and received financial subsidies. Among them, there are 15 companies in the indoor lighting products LED downlight package segment and reflective self-ballasted LED light, and there are 25 companies in the outdoor lighting LED street light and LED tunnel light.

In this promotion project of financial subsidies for LED lighting products, the winning bid models of each short-listed company are under 10 models. Shenzhen Shuming Technology Co., Ltd., Jiangsu Shifu Optoelectronics Co., Ltd., Guangdong Dehao Runda Electric Co., Ltd. and other three companies all have 10 models of products short-listed; Dongguan Qinshang Optoelectronics Co., Ltd., Shanghai Yaming Lighting The number of the four short-listed companies for the four companies, including Zhejiang Sunshine Lighting Electric Group Co., Ltd. and Xiamen Donglin Electronics Co., Ltd., was 9 in total, among which Dongguan Qinshang Photoelectric Co., Ltd. had a total of 470,000 limited sales of semiconductor lighting products in 2012. Ranked first.

Financial subsidies favor the entire industry chain

After the successful bid for products, Foshan Guoxing Optoelectronics Co., Ltd. and Dongguan Qinshang Optoelectronics Co., Ltd. both issued announcements that the successful bid for the promotion project of semiconductor lighting products will further consolidate and enhance the company's leading position in domestic LED applications. Promote the company's domestic sales to play an active role.

According to Zheng Tiemin, general manager of Inspur Huaguang Optoelectronics Co., Ltd., including the “Ten Thousands of Millions” project launched by the Ministry of Science and Technology in 2009, related departments have successively introduced a number of policies to support the development of the LED industry and promote LED products in China. The marketing has played an important role. At the same time, it has brought important influence to the entire LED industry chain.

Zheng Tiemin believes that the subsidy policies jointly announced by several ministries and commissions of the country are on the surface a subsidy for end products, and actually have a pulling effect on the entire industry chain. Take Inspur Huaguang Optoelectronics Co., Ltd. as an example, a total of 150,000 indoor LED lighting products of 2 models received financial subsidies, and the performance of the branches of Inspur Huaguang's terminal LED products will be significantly boosted. At the same time, because Inspur Huaguang's business involves the entire LED industry chain including upstream epitaxial wafers and chips, the government subsidies will allow LED manufacturers to further expand the market, thereby increasing the demand for raw materials.

"In fact, the national subsidy policy affects more than 100,000 products," said Zheng Tiemin.

Technological innovation is the key

Although fully affirming the importance of the government subsidy policy for the LED industry and related companies, the heads of LED companies still emphasize that, in order to reduce the price of LED products, LED companies must ultimately rely on technological innovation.

Zheng Tiemin example analysis, most of the previously produced LED products can only reach 60 lumens luminous efficiency, and now most companies produce LED products luminous efficiency of 130 lumens, luminous efficiency has been increased by 1 times, the price is the same as the original, equivalent to the price It dropped by half. Therefore, the key to lower prices is to rely on technological innovation.

In addition, the decline in the cost of LEDs also depends on a significant drop in raw material prices. Qiu Huanguo, senior manager of Qinshang Optoelectronics International Business Department, said that from the perspective of the 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 often occupy 70% of the profits of the industry chain, while the midstream and downstream account for the remaining 30% of profits. In particular, the core material LED chips used in LED lighting products, most of the chips of LED lighting products in Mainland China are mainly imported from the United States, Japan, and Taiwan of China, while the Chinese mainland companies mainly concentrate on the packaging and application of the middle and lower reaches. field.

Zheng Tiemin said that with the increase of downstream LED manufacturers, raw material production companies will increase, and the choices of downstream manufacturers will increase. Raw material manufacturers are in a competitive environment, and raw material prices will naturally decline.

“The price of LED will be greatly reduced through technological innovation and the reduction of raw material prices. In 2010, a 10-watt bubble lamp will be sold for 120 yuan. Now it costs only 40 yuan, and some even as long as 20 yuan.” Zheng Tiemin said.

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