China’s LED industry gallops to Rs 250 trillion in 2011
Taking full advantage of government support, China’s LED industry clocked sales of over Rs 250 trillion in 2011—23 per cent more than in 2010—by offering a wide range of innovative products. The industry is poised to grow almost double to Rs 460 trillion by 2015.
The LED market covers LED bulbs, LED displays, traffic signals, automotive applications, LCD backlighting, handset keypads, digital still camera flashlights, decorative lighting, street lighting and general illumination. A new demand driver for LEDs in the medium to long term will be the general lighting market. Given the global trend to reduce carbon emissions, China’s demand in the general lighting segment will be strong for LEDs, which offer low power consumption and are environmentally safe. The Chinese, however, are not happy since most LED wafers are imported. China trails due to the lack of technological and R&D capabilities. China’s LED players enjoy ample funding from the government, which subsidises at least 70 per cent of the purchase price for metal-organic chemical vapour deposition equipment employed in LED manufacturing. Furthermore, tax and utility payment benefits are offered to encourage investments in the domestic LED industry, proving to be anadditional boon for local players.