The LED lighting product subsidy program for the 12th Five Year Plan has been set up by China's National Development and Reform Commission and Ministry of Finance and will be announced this week. The market expects the subsidies to be quite large.

In recent years, Taiwan-based LED firms have been setting up plants in China, hence industry sources believe the firms such as Everlight, Ledtech and Delta can all benefit from such subsidies. However, according to industry sources, the subsidy will only cover four million LED lighting units, meaning the subsidy will likely be less than CNY200 million (US$32 million), a lot less than the expected value of CNY8 billion.

Nevertheless, Taiwan-based LED lighting makers are optimistic about the subsidies for indoor LED lighting from the China government.