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According to industry sources, the demand for indoor LED lighting in the first half of 2013 was strong. LED companies indicated that there is a shortage of medium-power LED indoor lighting products, including light bulbs, light pipes and embedded lighting. Industry insiders estimate that China's LED lighting market will grow by 50 in 2013. Therefore, some LED companies in China may restart capacity expansion.
The increase in LED demand stimulates companies to start capacity expansion plans. Sanan Optoelectronics has received 5 billion yuan (about 8.15 million US dollars) from the China Development Bank. The company announced a planned injection of 3.3 billion yuan at the end of May, of which 2.8 billion yuan will purchase new MOCVD (metal organic chemical vapor deposition) equipment for the Wuhu plant in China. Recently, in Sanan, Xiamen, it announced plans to add 20 new sets of equipment, and the local government will provide 100 million yuan of subsidies.
Taiwan's LED companies said that the market is still in oversupply, although some products have been in short supply, but capacity expansion may lead to another crisis in the industry.
In the past, Chinese companies' LED lighting technology clearly lags behind Taiwanese counterparts. However, the technologies and products exhibited by Chinese companies at the 2013 Guangzhou International Lighting Exhibition (2013GILE) have improved a lot compared with their counterparts in Taiwan and are highly competitive.
In 2012, China's LED industry suffered from oversupply and price competition, and the industry did not pay enough attention to the LED lighting policy, so the company stopped its capacity expansion plan in 2013. However, since the first quarter of this year, local governments such as Guangdong, Fujian, Jiangxi, and Shanghai have announced new projects and subsidies.
