Government funds to support the domestic LED market will double in 2014

ISuppli company said in driving demand for LCD TV and lighting comprehensive government subsidies and the market, the China light emitting diode (LED) market will be doubled in 2009 to 2014 years.

In 2014, LED China returns up to 7 billion 100 million dollars, compared to $3 billion 400 million in 2009 revenue is greatly improved, the annual growth rate of 12.8%. ultra high brightness (UHB) LED will grow particularly fast, earnings increased from $686 million in 2010 to 2014 is expected to 1 billion 800 million dollars.

ISuppli's forecast report on LED's revenue trends in China from 2009 to 2014.

VincentGu iSuppli senior analyst specializing in China market pointed out that compared to the United States and Taiwan's rival, LED Chinese manufacturers lack of technical content, in the production process management team's experience and research and development personnel, but China has a strong financial support from the government, which enable them to the demand of the market a slice. The Chinese government is responsible for at least 70% of the cost, or that each purchase of a metal organic chemical vapor deposition (MOCVD) machine (used in the production of LED) on average invested $1 million 500 thousand. Furthermore, the local government will support the development of the LED with the revenue of the people and the return of utility.

ISuppli optimistic estimates, the government's financial support will be between 2010 to 2012 each year to stimulate China's LED producers spend more than $3 billion 500 million in LED related production equipment. This cost will enable producers to solve technical problems, including the lack of intellectual property rights, the lack of production equipment and LED chips.

Gu added that, with such a large amount of capital expenditure and the foreseeable future technological progress in the next few years, China's LED manufacturers in 2015 as a strong competitor to enter the global market.

Market prospects for LED diversification

Domestic LED market coverage is very broad, including LED display, lighting, street lamps, comprehensive traffic signal and the mobile phone keyboard, digital camera, large size LCD TV screen, notebook computer and other LED display screen. China's LCD backlight applications market share will reach $400 million 6 thousand and 800 in 2014, compared with 2010 of the total growth of 1 billion 200 million.

The emergence of a new demand, it will be the development of LED to a more stable, considerable direction, it is a comprehensive lighting. The world is committed to reducing carbon dioxide emissions, which indirectly led to the continuous increase in energy efficiency and low demand for LED, in the overall lighting market as well. ISuppli estimates that in 2010, the overall lighting market accounted for about 18.4%. of the entire LED Market