LED bulbs

	Shenzhen Baisheng’s model BS-52 T8 LED tube comes in white and warm white versions. The 20W unit has 320 diodes.

LED bulbs and tubes production in Shenzhen jumped by more than 30 percent between 2006 and 2008, thanks largely to the strong network of local upstream and downstream industries.

Supporting sectors include suppliers of substrate and epitaxy materials, and LED chips and chip packaging. In fact, the city accounts for about 70 percent of all chip packaging done in China, with 700 companies offering the service.

Makers also benefit from their proximity to several providers of electrical and electronic components, and molding services. A number of metal and plastic processing companies can be found in the city as well.

Further, Shenzhen is home to a pool of application engineers. These professionals include personnel trained by foreign companies with local partnerships.

Strong and continued government support is likewise propelling the city’s emergence as a key hub for LED lighting products. In 2005, for example, the local administration set up the Shenzhen Semiconductor Lighting Industry Park in Bao’an district.

Early this year, the government outlined additional projects to develop and expand the local industry, particularly LED encapsulation and LED display production.

The 2009-15 Shenzhen LED Industry Development Plan aims to speed up the clustering of local LED and other optoelectronics makers and R&D companies. The majority of these suppliers also produce LED bulbs and tubes.

This ensures a stable industry chain and facilitates sharing of advanced manufacturing and design technologies between related enterprises.

The strategy is expected to boost and strengthen Shenzhen’s technological capability further. The city has set aside about $15 million annually for the next three years to fund R&D, patent acquisition, industry standardization and marketing.

The plan also aims to expand and promote LED utilization, particularly in general lighting. In fact, the local government is considering giving subsidies to encourage enterprises and households to adopt LED luminaires.

Some large public and private institutions have already been identified as test projects and will receive 10 to 30 percent financial assistance in their LED lighting requirements.

The development plan also contains a similar directive as the BIPV program to help promote LED lighting.

Under the Shenzhen City Public Technology Service Platform Construction Program, LED lighting would be adopted in various government construction projects. These include the Shenzhen Convention and Exhibition Center and the venues for the upcoming 26th Shenzhen Universiade, and subways and freeways.

In 2008, Shenzhen turned out $2.5 billion worth of LED bulbs, tubes and fixtures, accounting for 40 percent of China’s total production in the line. With the plan in place, output is projected to hit $4 billion in 2010 as at least five makers break the $73 million mark.

By 2015, the total figure is expected to climb to $19 billion. This is based on targets of at least one supplier reaching $1.5 billion, two or three with $730 million, and about 10 with $146 million or more.
Bracing for increased demand

With demand for energy-efficient products suited to large-scale industrial, commercial and home applications on the upswing, suppliers in the city are expanding their selections to include models for outdoor use.

Shenzhen Baisheng Semiconductor Lighting Co. Ltd, for example, is developing LED bulbs and tubes suitable for flood- and streetlights.

Even so, most products from the city are designed for household indoor lighting.

Luminous efficiency ranges from 80 to 100 lm/W. Units are priced between $5 and $100 each.

Bulbs are rated from 1 to 10W, with 3W versions going for $10 to $12 and 5.5 to 7.5W models averaging $20.

LED tubes, meanwhile, come in T5, T8 and T10 configurations. The second type, particularly variations with a power consumption of 18 to 20W, dominates production. Quotes for a 20W T8 LED tube are between $20 and $40.

Prices are down 10 to 20 percent from last year. Makers are forecasting another 10 percent reduction in 2010, thanks mainly to the falling cost of key components.