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LED industry reveals "bottleneck" and suffers from subsidy "dependence"

  • Author:Innotech
  • Source:Innolite
  • Release on:2018-04-16
Policy subsidies to promote the development of the LED industry for many years, how to do without subsidies? This is a big problem for the current LED industry. The government's high subsidies have already created a dependency on the company and if it is suddenly withdrawn, what will happen again.

With the support of policy subsidies for many years, LED lamps(Retrofit GLS A19 A60 LED lamps) have quickly replaced incandescent lamps of traditional light sources and lighted thousands of households due to their advantages of energy saving and environmental protection and affordable prices. The industry's "13th Five-Year Plan" has also given a high "expectancy" to this product that benefits the country and the people, and will reach a trillion yuan output value by 2020.
Subsidies have promoted the rapid development of the industry and have also become one of the pain points for sustained and healthy development. If the policy "retreats", how will the industry develop? Is the price still close to the people? At present, this has become the sword of Damocles hanging on top of the industry. According to Xu Qiang, director of the National Energy Conservation Center, China has basically eliminated more than 60 watt incandescent lamps for general lighting, and the remaining market share is less than 5%. Through the implementation of the "Energy-saving Products Benefiting the People's Project", the country has successively promoted 780 million LED high-efficiency lighting products(vintage LED bulbs energy saving) throughout the year. The people have not only enjoyed real benefits, but also made great contributions to energy conservation and environmental protection.

But unavoidable is that the rapid development of semiconductor lighting industry has gradually revealed a "bottleneck", high subsidies for companies suffering from "dependency." There are also some companies blindly expanding production after subsidies, the result is overcapacity, price war is still frequent, the company unwitting research and development ... ... 2015 LED industry ushered in the "winter", nearly 4,000 SMEs closed down.

Since last year, there have been signs of subsidy for the LED industry(LED light bulbs manufacturer china) in some places. If the company fills the "deficit" to increase the price of LED lights, will the market buy it? Therefore, the industry should make early plans.

Experts called for China's semiconductor lighting to accelerate the cultivation of industrial innovation and competitiveness. Only in this way can we master the right to speak in the market. The future of the semiconductor lighting industry is still bright.