Analysis Report on the Development of China's LED Green Lighting Industry

I. Rise of the LED industry: The wave of lighting reform, the first rapid increase in China's LED sales, began in 2003 after the official start of the national semiconductor lighting industry project, a large-scale replacement of urban traffic lights. The signal lamp alone led to a 61% high growth in China's semiconductor lighting market. According to industry special guest Luo Baihui, at that time LED was blowing a wave of lighting reform around the world. After feeling the huge temptation of LED, then the world's three major lighting industry giants-General Electric, Philips, Osram Group and semiconductor companies have set up lighting companies. The United States, Japan, and the European Union have officially established projects to formulate budgets and plans to implement white light-emitting diode lighting. In order to keep pace with the world in time, the Ministry of Science and Technology jointly launched the "National Semiconductor Lighting Project" in an emergency with other ministries and commissions. The second development of LED comes from the rapid growth of automotive LED lighting and indoor LED decorative lights in 2005. Compared with the previous year, the two have increased by 53.1% and 133.3% respectively. In this year, the domestic semiconductor lighting LED market sales exceeded 1 billion to 1.17 billion, an increase of 49.0% over 2004. When the financial crisis broke out in 2008 and international demand shrank sharply, the LED industry set its sights on the domestic market. Favorable policies followed, and in December 2008, the Ministry of Science and Technology proposed to launch the "Ten Cities and Ten Thousands of Lights" project. In addition, with its long life and energy saving advantages, LED has been defined as an important driver for energy saving and emission reduction and stimulating domestic demand, and it has frequently appeared in policy documents and implementation outlines of various national ministries and commissions. When landslides occurred in various industries, LED staged a good show against the market. Luo Baihui believes that the rise of the LED industry has largely benefited from the idea of launching a "10 cities and ten thousand" LED application pilot model city proposed by the Ministry of Science and Technology in December 2008. On March 16 this year, the High-tech Department of the Ministry of Science and Technology changed the original 10 cities to 21 cities. These cities will receive central subsidies in the future to install LED lighting in public spaces such as roads, tunnels, parking lots and gas stations.

Guangzhou Gaaye Electronics Co., Ltd

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