The Chinese government recently issued the "2012 semiconductor lighting product subsidy promotion project" file. The product targeted by the subsidy project has two major sections: outdoor traffic lighting and indoor commercial lighting. A research organization believes that such subsidies for lighting products will further increase the possibility of polarization in the LED lighting industry.
It is understood that these two categories of products are currently relatively mature products in the Chinese market, but the price is higher. Street lights in outdoor traffic lighting With the support of the Chinese government, the “Ten Cities Ten Thousand Miles†project serves as an industry support, while indoor commercial lighting sales in the mainland market are not ideal. The consumption capacity of the Chinese market itself is also limited, leading many manufacturers to export such products to Europe and the Middle East.
The agency believes that due to the relatively high prices of these two types of products, engineering projects demand higher product quality, brands, and suppliers. As a result, many manufacturers in the Chinese mainland have no way to make breakthroughs in the market. This has led large companies to skyrocket in this “spring breeze,†while small companies have found it difficult to capture such opportunities.
If subsidies are implemented in the upper reaches of the LED industry, companies that are listed in the Chinese mainland will all be upper-middle LED companies. As these companies are listed one by one, the LED upstream industry will have sufficient funds to achieve capacity expansion, given the downstream product market. Without corresponding expansion of capacity, bottlenecks in terminal sales will occur, and large inventory will appear in the upstream and upstream products.
If the subsidy action is implemented from the LED downstream industry, the output of the entire LED industry chain is applied downstream. If the terminal market is opened, it is clear that the good end-market performance will directly drive the sales of upstream and upstream products.
It is understood that these two categories of products are currently relatively mature products in the Chinese market, but the price is higher. Street lights in outdoor traffic lighting With the support of the Chinese government, the “Ten Cities Ten Thousand Miles†project serves as an industry support, while indoor commercial lighting sales in the mainland market are not ideal. The consumption capacity of the Chinese market itself is also limited, leading many manufacturers to export such products to Europe and the Middle East.
The agency believes that due to the relatively high prices of these two types of products, engineering projects demand higher product quality, brands, and suppliers. As a result, many manufacturers in the Chinese mainland have no way to make breakthroughs in the market. This has led large companies to skyrocket in this “spring breeze,†while small companies have found it difficult to capture such opportunities.
If subsidies are implemented in the upper reaches of the LED industry, companies that are listed in the Chinese mainland will all be upper-middle LED companies. As these companies are listed one by one, the LED upstream industry will have sufficient funds to achieve capacity expansion, given the downstream product market. Without corresponding expansion of capacity, bottlenecks in terminal sales will occur, and large inventory will appear in the upstream and upstream products.
If the subsidy action is implemented from the LED downstream industry, the output of the entire LED industry chain is applied downstream. If the terminal market is opened, it is clear that the good end-market performance will directly drive the sales of upstream and upstream products.
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