Chinese LED business will be worth $6 billion this year -

The Chinese government is investing money in the domestic LED business and that, along with several new applications, means that its share of the market will be worth close to $6 billion this year.

That, says market research company IHS, is just the start of things for China – by 2015 the market will be worth $11.1 billion – a compound annual growth rate of 17.7 percent.

Vincent Gu, senior analyst for electronics research at IHS, said markets include backlights for LCD TVs, street lighting and other applications is an attractive sector for investment, and backed by the Chinese government.

Street lighting alone will be worth $1.5 billion this year, while domestic and commercial lighting is a growing segment.

But even though the Chinese market is large, Gu says that the domestic LED industry is “in its infancy” compared to countries like the USA and Taiwan.

Government subsidies for the sector include a grant of 70 percent or more of price for metal organic chemical vapour deposition machinery. There are also tax breaks and utility breaks for local companies in the sector.