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September 21, 2017

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China's bulb ban predicted to aid LED firms

Taiwan manufacturers of light-emitting diodes (LED) may take advantage of China's move to ban imports and sales of incandescent bulbs of over 100 watts, analysts said yesterday.

The ban, imposed jointly by various Chinese government agencies including the Ministry of Commerce, took effect yesterday and is seen as China's latest effort to eliminate incandescent bulbs altogether, analysts said.

The Chinese government announced in August last year the country's incandescent bulb elimination would begin on Oct. 1, 2012, in separate phases based on power and illumination.

On Oct. 1, sales and imports of 100-watt incandescent bulbs and over for regular illumination purses were to be banned. By Oct. 1, 2016, sales and imports of bulbs of 15 watts would also be under the ban, which would eventually terminate the usage of incandescent bulbs in China.

According to industry players, China's move follows similar actions by the European Union, which has found incandescent bulbs to be power consuming and unenvironmental.

Back in March 2007, the European Union published a roadmap for the elimination of incandescent bulbs. At the end of 2008, the 27 member nations of EU reached an agreement to ban sales of incandescent bulbs by the end of 2012 and replace them with bulbs that save more energy.

This trend may benefit Taiwan's manufacturers of LED bulbs, which are three to four times more expensive than regular incandescent bulbs. Reducing prices and maintaining profitability remains a challenge, analysts said.

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