Subsidy for "downhill" and how LED lights continue to be "people-friendly"

With years of continuous policy subsidies and support, LED lights have quickly replaced traditional incandescent light sources and lit up thousands of households with their advantages in energy conservation and environmental protection, as well as affordable prices. The industry's 13th Five Year Plan also places high expectations on this product that benefits the country and the people, with a production value of trillions of yuan by 2020.

Subsidies have promoted the rapid development of industries and also become one of the pain points for sustained and healthy development. If the policy "declines", how will the industry develop? Is the price still affordable?

Looking at the "Bright Future" of LED Lights from the "Two Accounts" of Benefiting the Country and the People

Semiconductor lighting, including light-emitting diodes (LEDs) and organic light-emitting diodes (OLEDs), has the characteristics of low power consumption, long lifespan, and rich colors, and is known as a "global technological revolution in the field of lighting".

In just a few short years, LED lights have become the "protagonist" in China's lighting market. This is the strong promotion of technological innovation and the general trend of energy conservation and environmental protection.

The Electric Power Research Association of America has calculated that an LED light that is equivalent to a 60 watt incandescent light can be turned on for 10 hours a day, consuming approximately 30 yuan of electricity annually, while a 60 watt incandescent light consumes 160 yuan of electricity annually.

According to data provided by the National Energy Conservation Center, lighting electricity accounts for approximately 14% of the country's electricity consumption, which is also the main reason why the government vigorously promotes the use of LED lights.

Through the implementation of the "Energy Saving Products Benefiting the People Project", China has gradually promoted 780 million LED high-efficiency lighting products nationwide in recent years. The people have not only enjoyed tangible benefits, but also made great contributions to energy conservation and environmental protection.

The bottleneck of development has been revealed, and subsidies have caused enterprises to suffer from "dependency syndrome"

Policy support, energy conservation and environmental protection have deeply rooted in people's hearts, leading to the rapid rise of the semiconductor lighting industry in China. Nowadays, China has become a major global producer, consumer, and exporter of semiconductor lighting products. In the past five years, the output value of semiconductor lighting in China has grown at an average annual rate of about 30%.

However, it cannot be avoided that the rapidly developing semiconductor lighting industry is gradually showing "bottlenecks", and high subsidies have caused enterprises to suffer from "dependency syndrome".

According to the annual reports and public information estimates of some semiconductor lighting listed companies, it was found that some leading enterprises in the domestic industry often receive subsidies of over 100 million yuan, usually in the names of "special funds for technological research and development," "equipment subsidies," and "quarterly industry subsidies. Some companies have received subsidies of up to 2.5 billion yuan in the past five years, and in some years, subsidies have accounted for more than half of their net profits.

Local governments encourage the semiconductor lighting industry to adopt more subsidy methods. The 12th Five Year Plan for the Development of Strategic Emerging Industries released by Guangdong Province proposes a financial investment of 22 billion yuan to support the development of strategic emerging industries, including semiconductors. Nanchang City has recently introduced a policy to promote the development of the LED industry, providing funding assistance of 30% of the invoice amount for purchasing equipment from each industry's research and development and testing public service platform.

Some experts lament that government subsidies were originally intended to promote LED lights and help powerful enterprises. But some companies suffer from "policy dependence", and subsidies have instead become their main profits