Chinese Government holds a open bidding for LED lighting Domestic Market

The Chinese central government has recently held a large-scale open bidding for LED lighting products. The National Development and Reform Commission, Ministry of Housing, and Urban-Rural Development Commission and Ministry of Transport conducted the tender evaluation together and published the bid award list on November 24th, 2010.

LEDinside, the LED research division under Trendforce, realizes that 28 LED lighting companies out of 94 bidding industry players have become bid winners. Bid products include LED street/tunnel lamps, LED down lights, reflector type self-ballasted LED lights MR and PAR series Most bid winners are China's local LED manufacturers, but the LEDs they adopt require high specifications, so Cree is undoubtedly the biggest winner. As the LED demand increases with the progress of the demonstration projects, Taiwan LED manufacturers can have an opportunity to enter the supply chain.

The award criteria emphasize the product quality, price and comprehensive strength of the manufacturer. LEDinside thinks that the technical award criteria require high specifications and quality of the LED lighting product. Apart from the safety requirement for lighting fixtures, the initial luminous flux, luminous maintenance factor and power factor also have related criteria respectively. Thus, the bid winners have actually obtained the endorsement and support from the government, which will immensely help expand the mainland market in the future.

According to LEDinside's analyst, the bidding puts certain scale limitations on the demonstration projects applied by governmental units. For example, no less than 5000 indoor LED lighting products must be applied into the construction/renovation project of architectural lighting; no less than 500 LED street/tunnel lamps must be applied into the construction/renovation project of secondary road, branch road or tunnel lighting. Besides, each unit will release orders totaled at least 3 million RMB. As more and more government units will apply for the demonstration projects based on the award criteria, the LED industry development has a bright version in the near future.