cens logo

Taiwan, Mainland China to Jointly Tap LED Lighting Opportunities

Mar 14, 2011 | By Michelle Hsu

The next five years are critical for the development of LED lighting on both sides of Strait

The 12th five-year national development plan that the Beijing authority announced last October, effective from the beginning of this year, to urbanize rural areas, upgrade industries and develop strategic industries such as new information technology (mainly associated with advanced Internet technology applications), new energy, environmental protection, electric vehicles and energy-efficient LED lighting, is expected to revolutionize the lighting market in China.

Standardization of specifications is crucial for the cross-straits LED lighting industry cooperation.Standardization of specifications is crucial for the cross-straits LED lighting industry cooperation.

To accelerate the development of China's LED lighting industry, the Beijing authority has announced several measures, including installing in over 20 cities ten thousand LED lamps each in ten cities, accelerating the replacement of incandescent bulbs, development of LED lighting standards and so forth, which are expected to generate considerable business opportunities amid the lighting revolution market in China.

New Beginning
Under the 12th five-year plan, China's authority in charge of the LED lighting industry has been upgraded from the Ministry of Science and Technology to the National Development and Reform Commission (NDRC). "It signals the beginning of the new era of the LED lighting industry in China," said Chu Shin-Sen, executive vice president of the Industrial Technology Research Institute (ITRI) and Chairman of the Energy Department of the ITRI.

According to Chu, as many as 5 billion incandescent bulbs will be replaced with LED lighting within the next five years, estimated to realize about the 500 billion RMBs (NT$2.3 trillion) in business opportunities, based on the so-called "1530" plan that targets to replace up to 30% of the incandescent bulbs in China by 2015, starting from street lighting and other lighting for public areas.

Chu, elected as the chairman of the Taiwan LED Lighting Development Commission upon the commission's establishment in March 2010, urges Taiwan's LED lighting companies to make the LED lighting of higher added-value for innovative applications to catch up with the development of China's LED lighting market.

Diversified Applications
Driven by more diversified applications of LED lighting, Taiwan's LED industry could generate an annual production value exceeding NT$540 billion by 2015, surpassing that of any other solar energy or optoelectronic industry," Chu estimates. He also believes the LED industry in Taiwan and China are complementary in industrial structure, helping to facilitate cooperation between the two sides. "The next five years are critical for the development of the LED industries in Taiwan and China," Chu commented.

"With many of the global economies agreeing to promote eco-energy industries, the LED lighting industry is set to grow faster not only in Greater China but also globally," Chu says. "But compared to their counterparts in China, Taiwan's LED lighting companies have the upper hand in technological advancement and operational scale," he adds.

Cross-straits Cooperation

China's massive LED lighting market potential is a strong incentive to develop cooperation between the LED industries on the two sides of the Taiwan Straits, a move expected to be mutually beneficial for both sides. Last October, a mainland delegation led by Xieh Gi, director of the Environment and Energy Department under the NDRC, visited the Ministry of Economic Affairs (MOEA) in Taiwan. During a meeting with MOEA officials, they reached an initial agreement on mapping out a plan for LED lighting cooperation, under which Taiwanese companies will team up with their mainland counterparts to bid for projects to build up to 100,000 road lamps in each of the over 20 designated cities in China.

LED lighting is among the three priority industries that Taiwan and China will jointly promote, develop under the 12th five-year national development plan in China.LED lighting is among the three priority industries that Taiwan and China will jointly promote, develop under the 12th five-year national development plan in China.

The designated cities include Beijing, Shanghai, Tianjin, Shenzhen, Wuhan, Xiamen, Fuzhou, Chungqin, Chingdao, Chengdu, Shijazhuang, Dalian, Haerbin, Ningpo, Hanxhou, Nanchang, Weifang, Zhangzhou, Xian, Dongguang, Mianyang etc., many of which have announced detailed measures to install modern LED lighting.

With the project value for each city estimated at around NT$2 billion, the initial plan is for cross-straits cooperation that includes upstream Taiwanese suppliers to provide LED lighting modules and downstream China-based companies to assemble parts into final products.

Bidders From Taiwan
The suppliers bidding from Taiwan include Everlight Electronics, Epistar Corp., Genius Electronics, and Leotek Electronics, among others. The MOEA officials representing Taiwanese companies will negotiate with Chinese delegations to develop such projects to create a new model of cooperation of the industries. "If the planned cooperation proceeds smoothly, the two sides could work together to provide world- class LED lighting to the global market in the long run," says MOEA officials.

According to the MOEA, LED lighting is one of the three priority industries that mainland China and Taiwan will jointly develop to generate tremendous business opportunities amid the revised 12th five-year national development plan in China. The other two priority industries are wireless communications and food logistics.

Besides the officially-sponsored cooperation, the Civil Association for LED Road Lamp Promotion has just signed a memorandum of agreement (MOA) earlier this year to cooperate with the Taiwan Affairs Office of the Fujian Province in China. Under the MOA, Taiwan's LED lighting companies may partner with counterparts in Fujian Province to set up a joint venture to produce world class LED lighting products.

Meanwhile, the Fujian Province is expected to offer considerable business opportunities for LED lighting, as many as 300,000 units of LED road lamps this year and another 600,000 units next year. The market for street lighting in the province is estimated to be worth between 20-30 billion RMBs within the next five years.

"China's green lighting policy dates back to 1996 when it started a series of public construction projects to install energy-efficient public lighting. In 2008, the NDRC started to subsidize up to 50% of the power bill for each LED lighting consumer to promote green lighting," says Chen Yen-sheng, chairman of the China Association of Lighting Industry, who also encourages Taiwanese companies to tap the public lighting construction projects in China, saying that there will be many construction projects with green lighting installations in the next five years.

LED Lighting Standards
In fact, the LED road lamp industry is still in its infancy: "LED lighting accounts for less than 0.1% of all the road lamps installed globally," Chu estimates. "An explosive growth is expected for this year and the next," he says. While the market is set to grow, "those who are certified are better positioned to compete for business opportunities." In this regard, the Bureau of Standards, Metrology, and Inspection (BSMI) under the MOEA is working with counterpart in mainland China, the Standardization Administration, to set specifications for LED lighting products in Greater China.

The "Agreement for Cross-straits Cooperation in Standard Certificate Test" that the two sides signed on March 21, 2010 marked the first step in this regard, followed by a cross-strait LED lighting standard conference held by China's Standardization Administration and the Fujian provincial government in Fuzhou City of Fujian Province two months later. The Taiwanese delegation for participating in this conference was led by Liang Kuo-hsin, Vice Minister of Economic Affairs.

"Taiwan announced the world's first LED road lamp standards in 2009, with China's Standardization Administration attempting to refer to it to set standards for the LED road lamp market in Greater China," says BSMI Director Chen Jieh-shan.

The BSMI plans to host the second cross-strait LED lighting standard conference in Taiwan, slated for July this year, with the Chinese delegation to be led by Gi Zheng-kun, director of the Standardization Administration in China.


Industry Reports

Functionality and PPE in Spotlight at Upcoming TITAS Expo on 10/13</h2>

Functionality and PPE in Spotlight at Upcoming TITAS Expo on 10/13

Sep 30, 2020

The upcoming Taipei Innovative Textile Application Show (TITAS) is entering its 24th edition, with 803 booths, 356 exhibitors from 11 countries, including Taiwan, Sweden, Germany, Japan, South Korea, Switzerland, the U.S., Vietnam, Hong Kong, Singapore, and China. Innovation, environmental-awareness, and products gearing towards the post-pandemic market are the focal points at TITAS. The five ...


Samsung's Potential Mini/Micro LED Partnership with Taiwanese Firms</h2>

Samsung's Potential Mini/Micro LED Partnership with Taiwanese Firms

Sep 28, 2020

The world's leading memory chip and smartphone maker Samsung Electronics is looking for potential display technology partnerships in Taiwan, specifically for mini/micro-LED industry applications. Local media Economic Daily News reported Samsung was partaking in a private project with LED driver IC supplier Macroblock Inc., a move signaling the Korean group's further ambition in the mini/micro-...


Strong Global Trade Rebound for Two-Consecutive Months: CPB</h2>

Strong Global Trade Rebound for Two-Consecutive Months: CPB

Sep 28, 2020

Since July, global trade volume continues to rebound, signaling economies' restarting in a bid to make up the worldwide lockdown this spring due to the pandemic. In a report released by the CPB Netherlands Bureau for Economic Policy Analysis, the CPB World Trade Monitor in July grew 4.8% compared to June, the largest increase since the bureau began compiling statistics in 2000. This is slightl...



Industry In-Focus

ITRI Forms Industry-Gov Alliance for Universal EV Charging Platforms</h2>

ITRI Forms Industry-Gov Alliance for Universal EV Charging Platforms

Sep 29, 2020

Industrial Technology Research Institute (ITRI) has allied with around 50 firms and government agencies to develop electric vehicle (EV) batteries technologies, seeking to roll out a standardized platform and allow EVs of different brands to use the same batteries. The alliance aims to cultivate the island's EV industry and offer customers a more diverse selection of charging options to choose...


Latest PCB Industry Report NTI-100 Shows Growing Asian Reach</h2>

Latest PCB Industry Report NTI-100 Shows Growing Asian Reach

Sep 23, 2020

Global PCB NTI-100 2019 Fabricators report from the research agency heavyweight N.T.Information showed companies with over USD$1 billion revenue have increased compared to 2018. The report, annually compiled by Dr. Hayao Nakahar, showed in 2019, 122 fabricators were listed reporting revenue over USD$1 billion, an increase of four companies compared to the 2018 list. The report also found more ...


Surgical Masks: the New Battleground for Textile Industry</h2>

Surgical Masks: the New Battleground for Textile Industry

Sep 22, 2020

With most of society worldwide becoming more and more accustomed to wearing masks in the post-pandemic era, it has become a must-have accessory, attracting domestic textile firms into production. Traditional textile firms, such as Eclat Textile, Makalot, Far Eastern New Century, Everest, Roo Hsing, and QVE, have begun making masks, reports say. The COVID-19 pandemic has led to fewer consumers ...



Supplier News

Sheh Fung owns three factories, one of which located in Mituo District, KaoHsiung primarily focuses on packaging and heading.

Sheh Fung Screws' Profitable Q3 Prompts Goal for NT$2 Billion Sales by Year-End

Sep 24, 2020

■ Huang Chih-ming Located in Kaohsiung, Taiwan, Sheh Fung Screws Co., Ltd focuses on manufacturing three categories of screws: self-drilling screws, painted screws, and wood screws, often found in wood construction, sheet metal roofs, wood footpath, and DIY home decor applications. Currently, the U.S. is the firm's primary market, making up 64% of sales, 7% for Europe, 6% for Asia, and 12% for...

SHEH FUNG SCREWS CO., LTD.


Chipboard Screw, Special Wood Screw, provided by Shuenn Chang Fa

Quality Fastener Maker Shuenn Chang Fa Shows Resilience with Sales Boost

Sep 24, 2020

■ Huang Chih-ming Taiwanese quality fastener manufacturer Shuenn Chang Fa Enterprise Co., Ltd.'s (SCF) presented exceptional ability to adapt to challenging times amid the COVID-19 pandemic. Unlike other firms, SCF leveraged its production strategy with its new plant, and even saw sales performing better than expected. SCF’s newest factory expands the original 10,000-square meters factory g...

SHUENN CHANG FA ENTERPRISE CO., LTD.


Stainless Steel Screws, provides by Ray Fu Enterprise Co., Ltd.

Ray Fu's Reliable Fastener Quality for Clients Bolsters Q4 Sales

Sep 24, 2020

■ Huang Chih-ming Ray Fu Enterprise Co., Ltd. is a Taiwanese professional exporter for various fasteners and steel wires. Along with its parent company Chen Nan Iron Wire, both firms are located in Kaohsiung City of southern Taiwan. Ray Fu manages a wire rod storage, spheroidizing annealing furnace, pickling surface equipment, wiring drawing machinery, and fastener forming machine. While the C...

RAY FU ENTERPRISE CO., LTD.



Insiders' Views

Caption: Pictured from front row, third right, Changhua County Government Economic Affairs Department Director Liu Yu-ping, County Magistrate Wang Huei-mei, Secretary Chen Bo-tsun pose in front of the exhibition booth. (Photo provided by CHCIA)

Changhua County Government Shores up Biz-Matching to Global Buyers

Nov 18, 2019

■Yang Feng-Chun In a bid to assist manufacturers in Changhua County to expand their market reach overseas against severe competition in the globalized market, Changhua County Government has been an active player in pushing for a makeover and innovation of its local small and medium-sized enterprises. This is done in hopes of establishing stronger connection with international markets. An ex...


Paul Master offers high-quality chassis and engines parts for passenger cars, trucks, and industrial trucks. (Photo courtesy of Paul Master)

Paul Master Builds Reputation with Auto Chassis and Engine Parts

Nov 18, 2019

Founded in 1980, Paul Master Auto Parts Co. is headquartered in Taiwan, a professional manufacturer of chassis and engines parts for passenger cars, trucks, and industrial trucks including forklifts. General Manager Terry Liang said the company has its own professional design department, which provides customized products and specifications for global buyers, including automobile steering and...

PAUL MASTER AUTO PARTS CO.


Nan Hoang Traffic Instrument Co., Ltd.</h2><p class='subtitle'>Taiwan First brakes Technology Co., Ltd. </p>

Nan Hoang Traffic Instrument Co., Ltd.

Taiwan First brakes Technology Co., Ltd.

Sep 04, 2019

Nan Hoang Traffic Instrument Co., Ltd is one of the major manufacturers of automobile friction materials in Taiwan and globally. Chairman Austin Cheng has implemented the double-arrow strategy this year - own brand of “YangPo” is adopted to focus on global channels while the “NHC brand focuses on improving market shares in global markets, such as Europe, America, Asia, Australia, and the Middle E...



Exhibition Highlights

Stable Development and Popular Fastener Show in China</h2>

Stable Development and Popular Fastener Show in China

Sep 11, 2020

Driven by market prospects, domestic and international exhibitors actively prepare International Fastener Show China in Shanghai on November 3-5, 2020. Suffering from global epidemic and quarantine nearly half year, exhibitions are hot and popular in mainland China. Thousands of visitors join and visit the exhibitions with inquiries, and are eager to know new technology. Domestic and inter...


2020 Medical Taiwan to Host In-Person and Virtual Events</h2>

2020 Medical Taiwan to Host In-Person and Virtual Events

Sep 10, 2020

2020 Medical Taiwan is slated to kick off on Oct. 15 to Oct 17 at Nangang Exhibition Hall 2. Aside from events at the show, show organizer Taiwan External Trade Development Council (TAITRA) is also hosting the “Medical Taiwan Virtual” online edition at the same time due to travel restrictions impacted by the COVID-19 pandemic. The virtual edition will present 200 exhibitors and over 700 medic...


Automechanika Shanghai 2020 reveals online tools to navigate current trends and post-pandemic opportunities</h2>

Automechanika Shanghai 2020 reveals online tools to navigate current trends and post-pandemic opportunities

Sep 01, 2020

Ms Fiona Chiew, Deputy General Manager, Messe Frankfurt (HK) Ltd, reflected that: “As the industry starts to spring back from the effects of COVID-19, we believe that highly influential platforms like Automechanika Shanghai play a crucial role rejuvenating the market. It is our mission to help players unlock their potential. Therefore, we are continuing to realign our resources by utilising new d...