April 30, 2013…China’s National Development and Reform Commission (NDRC) will subsidize procurement of 30 million LED lighting products in 2013 through open-bid competition, according to Digitimes. Major Taiwan-based LED lighting makers are expected to participate in the competition, however, it is expected that Chinese LED lighting companies will be given preference.
In 2012 for example NDRC offered subsidies for procuring 8.7 million LED downlights and PAR lights for indoor use, along with LED street lamps and tunnel lights. Of the 39 winners out of 113 competitors, Philips was the only international winner of the procurement projects. Kingsun Optoelectronic and Lampearl Photoelectronic were the two largest winners in terms of procurement volume. All Taiwan companies failed in open bids.
According to Digitimes, NDRC’s 2013 subsidization will include purchase of LED light bulbs as well as extend application of indoor LED lighting to government organizations, hospitals, commercial buildings, transportation stations and airports as well as that of outdoor LED lighting to roads, plazas, open space and parks. While some Taiwan companies including Everlight Electronics, Delta Electronics, and Leotek Electronics have won open bids in Taiwan, the article noted that the contracts to purchase the LED lighting will favor Chinese companies over competitors.
NDRC is expected to hold open bids in the second half of 2013 and finish the subsidized procurement by the end of the year, the sources noted.