But domestic demand is weak. Despite subsidies and the promise of reduced
power bills over time, Chinese households have been slow to switch to LEDs
because they are still much more expensive to buy than conventional lights.
Quality issues have also hurt consumer confidence.Industry consolidation may
temporarily disrupt the world's LED supply chain given 60 to 70 percent of
China's capacity is built for exports, analysts say. But in the long run, the
shakeout should lead to a healthier Chinese LED industry and hence better
quality products.Shares of the more than two dozen Chinese LED players listed in
China and Hong Kong, some of which attracted private equity investment before
their listings, have tumbled as their profits evaporated.led high bay is down 48 percent from a March peak, and Shenzhen Unilumin
Group Co Ltd 300232.SZ has lost 37 percent.
Osram - partly owned by German engineering conglomerate Siemens AG- and General Electric Co should emerge as winners due to their financial clout and technical expertise, industry experts say.Philips and Osram, which have traditionally focused on conventional lighting in China, have ramped up production of LEDs. Osram, which employs 8,000 people in China, started construction of its first-ever LED chip packaging plant in China in August, a 100,000-square-metre complex in the eastern city of Wuxi, using chips made in Germany and Malaysia.So far, LEDs are mainly used in street lighting, shopping malls, upscale hotels and office buildings. To accelerate a broader shift to efficient lighting, China in October started to phase out wasteful incandescent bulbs, joining other countries like the United States and Japan.
The diodes, semiconductors that convert electrical current into light, are much more efficient than the two dominant products for home and commercial lighting, compact fluorescent lamps (CFLs) and incandescent bulbs. LED lights are longer lasting and up to 10 times more efficient than incandescent bulbs.Some industry experts predict that within 10 years, these lights will deliver more environmental and economic benefits than any other clean technology, including high-voltage power transmission, electric vehicles, smart grids or renewable power.In North America, LED-based lights account for about led high bay light percent of the general lighting market, according to a 2012 report on the global LED sector from consultants McKinsey.
Osram - partly owned by German engineering conglomerate Siemens AG- and General Electric Co should emerge as winners due to their financial clout and technical expertise, industry experts say.Philips and Osram, which have traditionally focused on conventional lighting in China, have ramped up production of LEDs. Osram, which employs 8,000 people in China, started construction of its first-ever LED chip packaging plant in China in August, a 100,000-square-metre complex in the eastern city of Wuxi, using chips made in Germany and Malaysia.So far, LEDs are mainly used in street lighting, shopping malls, upscale hotels and office buildings. To accelerate a broader shift to efficient lighting, China in October started to phase out wasteful incandescent bulbs, joining other countries like the United States and Japan.
The diodes, semiconductors that convert electrical current into light, are much more efficient than the two dominant products for home and commercial lighting, compact fluorescent lamps (CFLs) and incandescent bulbs. LED lights are longer lasting and up to 10 times more efficient than incandescent bulbs.Some industry experts predict that within 10 years, these lights will deliver more environmental and economic benefits than any other clean technology, including high-voltage power transmission, electric vehicles, smart grids or renewable power.In North America, LED-based lights account for about led high bay light percent of the general lighting market, according to a 2012 report on the global LED sector from consultants McKinsey.
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