Taiwan government is planning to invest NT$50 billion (US$1.48 billion) to the adoption of devices powered by renewable energy and green industries, including LED, as part of its NT$500 billion public construction program, reported the Chinese-language Economic Daily News yesterday, citing Minister of the Public Construction Commission Fan Liang-shiow.

As a result, shares of major LED chipmakers has surged yesterday after the report, with Epistar and Formosa Epitaxy Inc rising 6.93 percent and 7 percent to close at NT$61.7 and NT$26.75 respectively, outpacing the benchmark TAIEX, which gained 1.3 percent yesterday.

Green energy industries will be prioritized in the investment targets of the National Development Fund with the purpose of enhancing the local manufacturers’ technology power, said the report, citing unnamed government officials. The Taiwan Cabinet is scheduled to vote for the proposal next Thursday, according to the report.

LED chip packagers Everlight Electronics Co and Unity Opto Technology Co also had their shares up 4.27 percent and 6.84 percent to close at NT$68.3 and NT$22.65 respectively.

By 2012, the global LED market will double its size from last year’s US$5 billion, according to a forecast from Taipei-based researcher LEDinside last week. The LED penetration rate in notebook computers could rise to more than 60 percent by next year as PC makers launch more models with LED backlight screens, replacing cold cathode fluorescent lamps as the screen’s light source, according to the forecast.