Light Emitting Diode and Organic Light Emitting Diode technologies are for solid state lighting. Compared to ordinary light bulbs even low power models they are extremely energy efficient. The initial cost of purchase is high, but because of the longevity of the items which can be 10 years or more the overall cost of ownership is lower than ordinary lighting systems too. China is the world’s largest producer of LED and OLED products and the country’s green economic strategy places the technology at the heart of its core offering.
This means that the Chinese government is willing to subsidise the industry to ensure global dominance of the technology. There are three main areas which there is significant financial support available to companies in China, research and development, major equipment purchases and direct product applications. Here’s a bit more detail regarding this:
Research and Development
Nanchang – The provincial government offers 20 million RMB annually in grants towards semi-conductor lighting products.
Shijiazhuang – Is developing a special fund to offer grants of up to 10 million RMB.
Ningbo – Identified LED and OLED technologies in its 11th”5 Year Plan” and is building a fund of 20 million RMB to support local development.
Harbin – is offering capital matching of up to 30% of the value of any local investments in the technology.
Chongqing – has a fund for 10 million RMB towards major infrastructure development and will consider investing in other (unspecified value) projects too.
Major Capital Equipment
Yangzhou – has invested 18 million RMB in two major projects in blue-green and red-yellow LED production, to bring local equipment to tier 1 international standards.
Jiangmen – is offering support to manufacturers who agree to purchase a minimum of 5 MOCVD (Metal-Organic Chemical Vapour Disposition) for the production of LED epitaxial wafers.
Wuhu – is also offering 18 million RMB for those willing to invest in MOCVD technologies.
Product Application
Guangdong – is offering subsidies of up to 50% of purchase price for buildings to change their lighting to LED/OLED.
Shenzhen – will give 10% of the price of equipment over the first 3 years or a full 30% for any building that agrees to become a demonstration site to show the efficiency of the lighting.
Wuhan – has 20 million RMB annually for 3 years to support changeover for businesses, government offices, etc.
Dongguan – is running a scheme similar to Shenzhen.
Xiamen – will invest 80 million RMB in changing over to LED on all major roads, and will purchase 10,000 units for use in government buildings too.
What does this all mean?
It means that for those interested in developing a key position in the LED trade, now could be a great time to forge partnerships with Chinese owned companies which qualify for large amounts of market support and great access to show early successful adoption of the technology on a large scale.
