The Ministry of Economic Affairs is studying the feasibility of subsidizing households which replace fluorescent lighting and incandescent lights with energy-efficient and higher-priced LED light bulbs, Vice Minister of Economic Affairs Francis Liang (粱國新) told reporters yesterday.
Liang made the remark on the sidelines of an investment forum in Taipei, after local media reported earlier yesterday that the ministry is planning to spend about NT$1 billion (US$34 million) on a new green energy subsidy program, citing Minister of Economic Affairs Shih Yen-shiang (施顏祥).
Liang did not elaborate on the details of the subsidy program.
On Thursday, Shih said that the ministry is planning the subsidy program in a bid to encourage consumers to buy LED bulbs.
The ministry is expected to release details about the subsidy program within two weeks, including subsidizing consumers by offering half the cost of each LED bulb purchase, Chinese-language Liberty Times (the Taipei Times’ sister paper) quoted Shih as saying.
In retail stores, LED bulbs cost around NT$400 to NT$500 each, much more than other energy-saving light bulbs. With the ministry’s subsidy, consumers would pay half as much for LED bulbs.
“The subsidy program should accelerate the growth of LED lighting in the residential market, which has a low single-digit penetration rate now,” Primasia Securities Co analyst Filia Lin said in a note yesterday.
In Japan, the Eco-Point program has successfully boosted the penetration ratio of LED lighting in that country to double-digits, local media reported.
While consumers may delay the purchase of LED bulbs until the ministry launches the subsidy program, analysts said in the long run the more affordable products would help local LED lighting makers to gain a bigger market share.
“This is a positive move for Taiwanese LED companies, especially Delta Electronics Inc (台達電) and Everlight Electronics Co (億光電子) which have their own-brands and which should witness significant growth in the retail market,” Lin said.
Shares of most LED bulb makers rose yesterday on the ministry’s subsidy plan, with Delta increasing 2.25 percent to NT$113.50, Everlight closing up 1.71 percent at NT$47.45, and China Electric Manufacturing Co (中國電器) rising by the daily maximum of 7 percent to NT$21.1.
Companies that manufactured LED components also attracted buying on the back of the government subsidy plan, with shares of Formosa Epitaxy Inc (璨圓光電) rising 1.90 percent to NT$21.40 and Edison Opto Corp (艾笛森光電) finishing 0.98 percent higher at NT$46.40.
Nonetheless, Lin said a subsidy program would also heat up competition in both pricing and quality, leaving players with stronger channel distributions and product quality able to stand out from the crowd.
“Such changes should help avoid the problem of small companies selling poor-quality products, which lowers consumer confidence and interest,” he said.
HANDOVER POLICY: Approving the probe means that the new US administration of Donald Trump is likely to have the option to impose trade restrictions on China US President Joe Biden’s administration is set to initiate a trade investigation into Chinese semiconductors in the coming days as part of a push to reduce reliance on a technology that US officials believe poses national security risks. The probe could result in tariffs or other measures to restrict imports on older-model semiconductors and the products containing them, including medical devices, vehicles, smartphones and weaponry, people familiar with the matter said. The investigation examining so-called foundational chips could take months to conclude, meaning that any reaction to the findings would be left to the discretion of US president-elect Donald Trump’s incoming team. Biden
INVESTMENT: Jun Seki, chief strategy officer for Hon Hai’s EV arm, and his team are currently in talks in France with Renault, Nissan’s 36 percent shareholder Hon Hai Precision Industry Co (鴻海精密), the iPhone maker known as Foxconn Technology Group (富士康科技集團) internationally, is in talks with Nissan Motor Co’s biggest shareholder Renault SA about its willingness to sell its shares in the Japanese automaker, the Central News Agency (CNA) said, citing people it did not identify. Nissan and fellow Japanese automaker, Honda Motor Co, are exploring a merger that would create a rival to Toyota Motor Corp in Japan and better position the combined company to face competitive challenges around the world, people familiar with the matter said on Wednesday. However, one potential spanner in the works is
HON HAI LURKS: The ‘Nikkei’ reported that Foxconn’s interest in Nissan accelerated the Honda-merger effort out of fears it might be taken over by the Taiwanese firm Nissan Motor Co has become the latest buyout target in Japan as it explores a merger with Honda Motor Co and faces an overture from Hon Hai Precision Industry Co (鴻海精密), known as Foxconn Technology Group (富士康科技集團) internationally. Shares in Nissan yesterday jumped 24 percent, the most on record, to hit the daily limit, after the two Japanese automakers acknowledged that talks are ongoing to better position themselves for competitive challenges during a time of upheaval in the global auto industry. Foxconn — a Taipei-based manufacturer of iPhones, which has been investing heavily in factories to build electric vehicles — has also
CHIP SUBSIDY: The US funding would help alleviate the financial pressure from building two fabs in the US and should lift gross margins in 2026, the company said GlobalWafers Co (環球晶圓), the world’s third-largest silicon wafer supplier, yesterday said it is to receive US$406 million in subsidies from the US Department of Commerce for two new US fabs under the CHIPS and Science Act, with the first batch of the funds likely coming next year. The grant represents 10 percent of the planned investments of US$4 billion in advanced semiconductor wafer manufacturing facilities in Texas and Missouri, GlobalWafers said. The commerce department is to disburse the funds based on the completion of project milestones over a multiyear timeframe, the company said. Along with the tax credit, which is equal to
RSS