Taiwan’s LED Makers Likely Benefit from Mainland China’s Subsidization Program

According to Taiwan Photonics Industry and Technology Development Association (PIDA), Taiwan’s LED makers will likely benefit from Mainland China’s recent introduction of a subsidization program for LED lighting.

According to the program publicized by Mainland China’s Ministry of Finance, LED lighting suppliers will subtract the subsidy amount from their retail prices when winning private or government contracts to supply the lamps. As a result, end users will be able to enjoy lower retail prices. Streetlight, tunnel lights and recessed lights are involved in the program.

Based on the program, PIDA estimated that Taiwan’s LED makers, from chip-making line to the packaging line, will be highly competitive against their mainland Chinese rivals with their excellent product performance/price ratio.

In addition, many Taiwanese manufacturers have formed alliances with the mainland’s homegrown suppliers, making them eligible for receiving the subsidy as the program excludes suppliers outside the mainland’s territory.

Epistar, Everlight, Formosa Epitaxy Inc., Unity Opto Technology Co., Ltd., Edison Opto Corp., Lextar Electronics Corp., and I-Chiun Precision Industry Co., Ltd are likely to benefit from the program.

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