Policy favorable to support the LED industry to usher in the spring

On November 4th, the National Development and Reform Commission formally released the roadmap for phase-out of incandescent lamps in China. By 2016, China will gradually ban the import and sale of incandescent lamps in five steps. In addition, “The 12th Five-Year Plan for Energy-saving and Environmental Protection Industry Development” may be promulgated at the Seventh National Environmental Protection Conference. The industry is rumored that LED lighting is expected to formally be included in the subsidy range. Before the end of the year, the first round of LED lighting product subsidies will be issued. For 8 billion yuan, first of all subsidies for indoor lighting and commercial lighting products, and then gradually expand the intensity and scope of subsidies. It can be seen that the market’s expectation of the country’s introduction of relevant supporting policies for the LED industry is increasing.

High LED luminous efficiency, less power consumption under the same illumination, use of white LED lighting, energy-saving than fluorescent lamps more than 50%, more than 80% energy saving than incandescent lamps, and its long life, no mercury, no pollution, good safety , is recognized as the third generation of electric light source. In 2012, major countries in the United States, Europe and Japan will gradually or completely eliminate incandescent lamps, which lays the foundation for the popularity of LED. At the same time, from the perspective of price decline, the price/performance ratio of white LEDs will show their advantages in the field of commercial lighting. In 2012, it is expected to become the first year of popularity of LED lighting. China is a big country in the production and consumption of incandescent lamps. China's lighting power consumption accounts for about 12% of the total electricity consumption in society, and there is a huge space for energy saving and emission reduction. According to the cumulative annual output of China's incandescent and energy-saving lamps of 8 billion, according to the current unit price for the most rough estimate, if all replaced by LED lights, LED general lighting potential market space above 400 billion yuan.

As the lighting market penetration rate is still low, and the slump in the display and backlight markets, LED demand is weak, pressure from the release of production capacity and the continued decline in the price of LED products, the third quarter of this year is the LED industry performance low since October The demand for LED lighting and demand for display screens have started to pick up. With the elimination of incandescent lamps and subsidies for energy-saving lighting products, the LED lighting market is expected to accelerate its start-up and the spring of the industry is approaching.

In terms of investment, we believe that the overall popularity of LED lighting can not be separated from the promotion of government subsidies, and subsidies may be targeted at the terminal's products, so the downstream of the industry chain is expected to be the first to benefit, you can focus on having scale advantages, technical advantages and Early involvement in LED lighting applications. Of course, from the experience of the LED industry's previous two business cycles, the profitability of the upper and middle reaches in the industry climate is greater than that of the downstream. Therefore, as LED lighting products are actively adopted by consumers, some chips and integrated companies will also Followed by the opportunity, especially with the production or packaging capacity of high-power lighting chip companies, it is recommended to focus on and explore relevant investment opportunities.

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