While the prospect of selling their products abroad seems dim to many domestic LED makers that lack patented core technologies, Fujian Wanbang Optoelectronic Technology Co Ltd could have a bright future due to "new breakthroughs" in chip-related research.

According to He Wenming, board chairman of the company, The new technologies solve heat problems while lowering costs and improving the lifespan of products. Compared to conventional bulbs, LED lamps can reduce energy consumption by 90 percent and even offer further reductions of 50 percent over the energy-saving lamps on the market today. The company also found a new material to replace silver-gilt brackets that are currently used in most LED lights

Currently there are more than 3,000 LED companies in China. Most of them are involved in midstream businesses - such as encapsulation - or at the low end of the industry chain in lighting applications.

Globally, LED encapsulation products were valued at 85.8 billion yuan ($13.45 billion) in 2010, according to a report by the Gaogong LED Industry Research Institute.

China produced 31 percent of the total, followed by Japan with a 26 percent share and South Korea with 14 percent.