LED subsidy policies are gradually tilting toward central and western provincial capitals

　　Recently, according to Taiwan media reports, with the mainland Chinese government actively promoting the LED industry, Taiwan manufacturers are also actively expanding westward to pursue business opportunities in mainland China's vast lighting market. Zhang Guangping, Director of the Topco Industry Research Institute, said that following coastal cities, provincial-capital cities in central and western China have become the most active regions in launching LED policy subsidies. Among them, Wuhan East Lake is actively cultivating new LED forces and has also been approved as a semiconductor lighting industry base under the 2nd wave of policy guidance.

　　It is understood that Taiwan LED factories' footprint in mainland China includes Everlight in Guangzhou and Suzhou, Edison's factories in Yangzhou and Dongguan, and Lee Zhou's Dongguan factory, mostly concentrated in coastal cities.

　　Zhang Guangping estimates that as LED subsidy policies shift toward central and western provincial-capital cities — with broad policy coverage and strong implementation — the central region will grow rapidly, and LED industry clusters will gradually form in the future.

　　Huang Panpan, research assistant at the Topology Industry Research Institute, pointed out that three major core economic belts in central and western China—including the economic circle centered on the Wuhan city cluster and the Changzhutan urban circle along the Beijing-Kowloon and Beijing-Guangzhou railway lines, the middle Yellow River economic circle relying on the Central Plains, Guanzhong regions and the national energy base, as well as the upper and middle Yangtze River economic circle with the Chengdu-Chongqing and Changjiu regions as its core—are expected to become the future internal driving force of mainland China.

　　Among them, the LED upstream wafer industry is currently one of the focuses of LED development across mainland China. In terms of subsidy policies, Wuhan has also rolled out substantial subsidies this year for MOCVD (Metal-Organic Chemical Vapor Deposition) equipment investment. Huang Panpan analyzed that, in addition to subsidy policies, combined with initiatives such as home appliances to the countryside, automobiles to the countryside, railway construction, and highway construction, domestic demand growth is also expected to be driven.

　　In addition, Zhang Guangping also pointed out that hosting various events in the second half of 2011 will further drive the lighting domestic demand market, including business opportunities such as urban renovation, landscape lighting, venue lighting, display boards, and demonstration applications. Central and western cities have great opportunities.

　　In addition to the existing LED industry foundation, the local area also has abundant LED market resources. Coupled with abundant high-quality talent resources, making it the second largest talent-intensive area in mainland China, the rise potential of central and western cities looks promising.

(Editor: liali)