The National Development and Reform Commission of China (NDRC) and the United Nations Development Program (UNDP) signed a joint agreement “Green Lights Project” to promote the use of energy-saving lamps (ESLs) in China. China has announced that it plans to gradually phase out incandescent lamps in three years. As a majority of LED chips in China are acquired from Taiwan, this project will certainly serve Taiwan LED chip makers a long-term order on a silver platter.

In order to promote the Green Lights Project, Chinese government will support the incandescent lamp enterprises in their transition between 2009 and 2012. The project will also receive 14 million U.S. dollars from the Global Environment Facility (GEF).

According to LEDinside, with Taiwan’s superior technology and a multitude of China’s downstream packaging providers in competition, it is no surprise that 67.7% of Taiwan’s LED chips are exported to China, (33.54% to mainland, 34.2% to Hong Kong). Ministry of Industry and Information Technology of the People's Republic of China (MIIT) has also been accelerating the phase-out of incandescent lamps, and promoting wider adoption of LED lamps in China. In light of these initiatives, Taiwan’s LED industry may expect to benefit more considerably going forward.