China's LED industry expands as part of "Made in China 2025"

World
Europe

LED industry in China is going to accelerate mergers and acquisitions (M&A) planing to foster world-class brands under the"Made in China 2025" blueprint.

In a development plan jointly released by 13 government agencies, China aims to achieve breakthroughs in key technologies in the LED industry to expand market value to 1 trillion yuan (148.6 billion US dollars) by 2020.

Under this plan, China expects to have at least one LED company with sales volume of more than 10 billion yuan, and plus one or two world-renowned brands.

LED lamps /AFP Photo

The Chinese government also encourages more M&As in the LED industry in order to push concentrated and differentiated development in the sector.

LEDs are semiconductor light sources that are more energy-efficient than incandescent bulbs. During the 12th Five-Year Plan period (2011-2015), China made the LED industry a strategic emerging industry in efforts to advance high-tech manufacturing and tackle climate change.

A LED light art festival at Huahai Park in Taiyuan, capital of north China's Shanxi Province, June 20, 2016. /Xinhua Photo

China has become the world's largest producer, consumer and exporter of LED products. In 2015, the industry output value amounted to 424.5 billion yuan, up 21 percent year-on-year, while exports of LED products brought 12 billion US dollars, rising by 15 percent, as China's LED industry is more and more reliant on overseas markets.

In May 2015, China drew the "Made in China 2025" blueprint, listing several tasks for the manufacturing industry, including boosting innovation, fostering Chinese brands and enhancing service-oriented manufacturing.

4km