The development of the industry benefited from the market, an invisible hand promoted them into the currently large market. According to the plan of the Ministry of Science and Technology, among “125” major scientific and technological projects, two are related with LED lights technology.
The market demand drove the development of LED. However, in the promotion of scientific and technological applications, the Ministry of Science and Technology has played an important role. The best known “ten cities and thousands lamps” project was implemented in 2009. In this project, more than 1.12 million pieces LED street lamps have been installed in 21 pilot cities, including Tianjin, Xi’an, Xiamen, etc.
China’s LED lighting industry is a rapid growth. After 7 major semiconductor lighting industrial bases established in Dalian, Yangzhou, Shanghai, Nanchang, Shenzhen, Xiamen, Shijiazhuang, the China Government set up another six bases in Tianjin, Hangzhou, Wuhan, Dongguan, Xi’an and Ningbo in succession. In the mean time, many local governments have also laid down a series of regulations to help fostering local LED industry. Currently, there are four basic LED industrial area in China: the Bohai Sea region, the Pearl River Delta region, the Yangtze River Delta region, Jiangxi and Fujian region.
Mr. Ren Zhang, secretary-general of China Building Decoration Association indicated that the market size of the LED industry in China will reach up to 500 billion yuan in the next five years. LED lighting products have been widely used in many areas, from vehicle lighting to residential lighting, from urban landscape lighting to decoration lighting. The entire market has huge potentials.
In the recent held economic seminar of China’s green lighting industry, Mr. Jinshou Xu (the executive vice president of Chinese Semiconductor Industry Association) indicated that: according to the published research report from Lighting Industry Alliance in 2010, the total output value of China’s LED lighting industry is around 120 billion yuan, in which 90 billion yuan came from LED applications, 25 billion yuan were from LED chip packaging industry. 5 billion yuan were from epitaxial silicon industry. He also pointed that the current LED industrial bases have not formed the mode of industrial cooperation, without a completed industry chain. Different provinces or regions have different standards. Competitions have the entire market be in a state of chaos.