Talking about the business opportunities that the ten cities and cities will bring to foreign LED giants

Countries around the world, such as the United States, Europe, Japan, China, and South Korea, currently have LED lighting-related plans. Among them, the ten-city plan that China has recently promoted is the most popular, which not only expands domestic demand and promotes economic growth in China. Directly generating benefits, and participating in LED lighting pilot cities, and tens of thousands of LED lighting in each city will make China an important market for LED lighting development in the world, and it has become an emerging market that many foreign LED companies attach great importance to.

According to the investment efficiency of LED street lighting, although the unit price of LED street lamp is 5 times that of traditional HID (high-pressure sodium lamp), if it is installed in each city of China with 10,000 LED street lamps and 8 years of continuous use, it is saved by LED street lamps. The electricity bill will reach RMB 46.72 million (about US$ 6.84 million), which is enough to cover the cost of LED street lighting installation.

According to the development plans of China's ten cities in various stages, the LED lighting demand created by them will be 1 million, 2 million, 3 million, and 5 million baht in 2009~2012, which will increase by several times every year. In 2009, China's total number of street lamps will account for 20% of the world's total. LED street lamps will account for more than 50% of the global LED street lamps, which is the largest demand for LED street lamps worldwide. In particular, the total number of traditional street lighting in China is about 2,000 to 25 million baht. If it is completely replaced by LED lighting, the development opportunities will be very large.

China's ten cities and cities can drive the LED industry to grow substantially, but its derivative issues such as China's national LED lighting standards have not yet been determined, resulting in different LED lighting specifications required by different cities; secondly, the price is the main bidding factor, which may cause The quality of LED lighting is uneven. In addition, to enter the Chinese LED lighting market, it is necessary to maintain good relations with the Chinese government. Therefore, for foreign LED companies, it is not easy to imagine eating a ten-city cake.

However, it is worth noting that the LED industry chain in Mainland China presents an extremely uneven situation of “lower and thinner”, that is, China has a huge LED market opportunity, and there are nearly 2,000 LED packaging factories, but the upstream LED chips are lagging behind. There are many LED manufacturers in Taiwan, and the gap generated by this part will be the main weapon for foreign companies to enter the Chinese LED market. That is to say, even if they do not participate in the LED street lamp bidding, foreign LED giants can still share Chinese lighting. Great business opportunities in the market.

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