LED chip industry staged a "cross-year" drama

In recent years, along with the rapid development of LED technology and the increasingly mature market, it is not uncommon for such incidents as “big fish to eat small fish,” “strong and strong alliances,” and “continuation of Lutai.” After entering into 2012, the LED chip industry is surging and moving frequently. From Jingdian, “Welcome to Yuguang”, Guanghan, Sanan to Yulong, DHL to NVC, to Maanshan Yuanrong Photoelectric to acquire Jiangxi Ruineng Technology, LED upstream. The industry has already begun to stage a "hegemony" between the giants.

After continuous turmoil, mergers and acquisitions, and other continuing actions, the mainland LED chip industry is facing structural adjustment. The mainland LED chip giants headed by Sanan Optoelectronics and BDO Runda are even more reluctant to “get the shot” and have the intention of surpassing the promising global LED lighting market.

The Big Battle of the One Brother Open After undergoing a period of rapid development in recent years, the LED chip industry in mainland China is currently presenting a situation in which small businesses have gradually exited. The development of large-scale LED chip companies with technological strength and scale strength is also growing, and the mainland LED chip industry is showing more and more concentrated development.

In Wuhu, Anhui, China, there are two production bases for the upstream giants of LED industry, Sanan Optoelectronics and BDO Runda. The origin of giant hegemony has to start with Wuhu in Anhui.

In December 2009, the small home appliance giant BDO Runda high-profile stationed in this famous brand of industrial towns, in the eyes of the chairman Wang Donglei, this is not only BDO Runda march to the LED industry, a heavyweight, will be 5 years later Become one of the largest LED industry bases in China. Just as BDO Runda announced that it had entered Wuhu for only two months, February 26, 2010, another LED company, Sanan Optoelectronics, also selected Wuhu as its LED industry base.

Under the strong support of the Wuhu Municipal Government and high subsidies, both parties have spent huge sums of money to purchase key upstream production equipment of MOCVD. Insiders pointed out that this not only means that BDO Runda is really involved in the core of the LED industry chain epitaxial film, and in the coming period, BDO Runda is expected to be in line with industry leader Sanan Optoelectronics.

For Bund Runda, who is halfway to the family, this is undoubtedly an important strategic way to accelerate its march into the LED field. Since then, in order to continue its layout in the LED industry chain, BDO Runda has successively invested capital or purchased the assets of Shenzhen Science Electronic Technology Co., Ltd., Enping Jianlong Circuit Board Factory Co., Ltd. and Shenzhen Ruituo Display Technology Co., Ltd. In addition, the “marriage” with NVC Lighting in 2012 is pushing BDO Runda to a new “top”. As a direct result of a series of operations, BDO Runda’s stock price continued to rise and maintained its high level, which laid the position of the former “small household appliance giant” in the “Big Brother” position in the LED industry and opened BDO Runda. A new chapter in the operation of the dual main industry.

Of course, as an industry leader, Sanan Optoelectronics has never stopped the deep plowing and layout of the LED industry. After the footsteps of the Wuhu LED project, its pace of accelerating production expansion has intensified. By the end of May 2013, Sanan Optoelectronics had thrown a planned increase of 3.3 billion yuan to implement the Wuhu Optoelectronics Industrialization (Phase II) project. On June 19, Sanan Electric announced that it would expand its production capacity again. The company decided to invest no more than RMB280 million in the wholly-owned subsidiary Xiamen San'an Optoelectronics Technology Co., Ltd. (abbreviated as Xiamen San'an) and increase the internationally advanced 20 units. Single-cavity machine or five four-cavity concentric machine GaN MOCVD equipment and extended part of the LED chip production line.

In the LED industry layout, the two major upstream giants can be described as frequent actions. In the face of the bright future of the industry, the two giants are profound. Only by mastering the upstream areas with core technologies can they win the LED prowess. However, with the gradual increase of the downstream market of LED lighting, the two major companies are also making great efforts in the layout of the industrial chain, sales channels and other aspects.

The integrated layout of the dark tide surging industry insiders agreed that the current LED industry in China is in the "night" before the outbreak, in the chaos of the dawn of the dawn of dawn, the LED industry chain integration is surging, LED giants have started the integration strategy, Looking for investment and partners, with a view to increasing capacity, quality and cost control through rapid integration, and opening the huge LED lighting market.

In the integration of industrial resources, the two major LED giants have also waved. While expanding the capacity of the chip, Sanan Optoelectronics has taken the lead in accelerating the overall layout of the industrial chain. In 2013, Sanan Optoelectronics completed a marriage with Taiwan Minyuan Optoelectronics. The combination of the two giant companies allowed the LED industry to “give up a thousand waves”.

Industry insiders also stated that in recent years, a series of integration, mergers and acquisitions of Taiwan's LED epitaxial wafer factories, represented by Jingdian, and the industrial chain layout in mainland China have caused serious threats to domestic LED epitaxial wafer factories. Undoubtedly, it will break the pattern of the chip epitaxial industry in the world.

In contrast, BDO Runda, the company's MOCVD machine only 50 to 60 units, far inferior to the 300 sets of crystal power (including the vast space), and Sanan plus a total round of 277 units, the huge difference in differential energy is also Let Dehao Run Daman stab in the back. To this end, BDO Runda is actively seeking related partners to jointly expand production capacity.

Following the "entry" of the traditional lighting giant NVC lighting, BDO Runda also accelerated the pace of strategic integration. It is reported that BDO Runda has locked its cooperation goal at Lunda, the LED factory of Taiwan’s AUO Group, and hopes to use the international foundry experience and AUO Group’s resources to grow itself. In addition, on August 30 this year, BDO Runda announced that it has invested RMB 40.8 million (approximately 196 million Taiwan dollars) and 39.20 million yuan (approximately 188 million Taiwan dollars) respectively in Guangzhou to establish LED packaging plants in Guangzhou to expand its packaging capacity. This establishes a complete industrial chain layout from the upstream chip, middle package, and downstream applications.

Sanan and BDO Runda in the mainland LED industry, the interpretation of the "brother" contention has gradually culminated. Before Sanan entered the stock market, Dhow later extended the olive branch to Lunda, and the integration war was ready and inevitable. At the same time, with the advantages of the two major companies in the downstream market of the industrial chain, the competition between the two giants will intensify.

The competition for channels has become increasingly mature in the face of the increasingly mature LED lighting market. Industry insiders say that only those companies with the advantages of both upper-middle-stream and the integration of downstream channels can survive in the cruel market competition in the future.

"The game of lighting channels is over." According to Wang Donglei, chairman of BDO Runda, the key to LED lighting industry integration is to have an end market. Only by occupying a certain market share through channels can companies be guaranteed, especially upstream chips and packages. Business survives in a cruel market. Therefore, compared to the new channels, the LED lighting market will be more easily occupied through mergers and acquisitions or mergers.

Based on this, at the end of 2012, BDO Runda announced that it would acquire approximately 20% of the shares of the traditional lighting company NVC Lighting and form a strategic partnership. LED lighting applications, the biggest barriers for the brand and the channel, and the strongest combination of BDO Runda's greatest significance is to use NVC lighting perfect sales channels, a huge dealer network to open the LED lighting downstream of the sea, and then Fill up the shortcomings of BDO Runda in the downstream market.

With the completion of the holding of NVC lighting, BDO Runda has taken the lead in the LED terminal market. Sanan Optoelectronics will be in a passive position in the market competition if it can not act in the terminal channel. For this reason, Sanan Optoelectronics began to plan to start its efforts in the downstream application market.

In May 2013, Sanan Optoelectronics Co., Ltd. jointly set up a joint venture company for R&D, production and sales of LED application products. In the same conditions, the joint venture company will preferentially use LED chips produced by Sanan Optoelectronics. At the same time, it also signed a chip purchase framework agreement with Zhaochi shares for a total amount of 500 million yuan.

Bigger moves are still behind. Sanan Optoelectronics issued an announcement on the evening of September 9 that the company plans to establish a joint venture company with Sunlight Lighting to develop a new LED light source, new lighting product research and development, and lighting market channel development company. In the future, the joint venture company will use or purchase the products of both parties preferentially under the same price/performance ratio in the process of marketization.

Join the sun and aim for the channel! Sanan's layout in the LED production and manufacturing field in the upper and middle reaches has gradually improved, except for the terminal channel in the downstream market, which is still a short board and unable to compete with Dreux. Sanan Optoelectronics stated that the company's future development goal is to strengthen and expand the LED industry, further consolidate the leading position of domestic LED, accelerate the pace of international development, improve the supporting facilities, and then rank among the world's top five LED industry. The joint efforts of Sunshine Lighting will help the company expand cooperation and increase the LED industry chain layout.

The battle for the show is waiting to be seen in the LED industry's "shrinking" storm in the previous two years. In 2013, especially since the second quarter, the LED lighting market has gradually warmed up, and the downstream application market demand continues to grow faster than expected, directly driving the midstream packaging and The rapid digestion of upstream epitaxial chip production capacity, some companies even have a rare order queuing phenomenon, industry insiders have predicted that "the spring of LED lighting market is coming!".

Whether the spring of the LED lighting market really needs to be confirmed by the follow-up market, but the fiery market is clearly beyond doubt. According to the Sanan Optoelectronics semi-annual report, in the first half of 2013, the company’s LED chip business was in strong demand. The company not only actively opened up its equipment, but also gave full play to its own technological advantages. It strived to improve the effective operation efficiency of equipment and improve its product structure, further reducing The production cost increases the market share of the company's products. At present, more than 130 MOCVD equipments wholly owned by Sanan Optronics are in full production. With the further advancement of the company's technology, the production capacity will be further released and the scale effect will be further reflected.

In addition, in order to open up the international market and win the right to speak in the overseas patent market, Sanan Optoelectronics has announced that it will acquire US 100% of Luminus Devices, Inc. for US$22 million. Sanan Optoelectronics stated that this acquisition is conducive to further enhancing the company's LED epitaxy and chip's core technology and channels, and expanding the sales scale in the international market.

At the same time, BDO Runda also disclosed in the semi-annual report that in 2013 the company's LED business has made considerable progress, chip production capacity began to release, chip sales reached 168 million yuan, a substantial increase over the same period last year 536.55%, is almost equivalent to Last year's sales amount. Significant progress has also been made in the development of new products, and flip chip "Northern Lights" has begun shipments in small quantities.

In addition, BDO Runda also stated that the company's integration with NVC Lighting has progressed smoothly. The company has obtained NVC Lighting's brand licensing license, and the company's LED lighting products have also begun to enter NVC lighting channels for sales. In the first half of 2013, sales revenue of LED application products increased by 60.79% over the same period of the previous year. At present, BDO has formed a complete industrial chain layout from extension to terminal application. The strategic cooperation with NVC, Whirlpool and AEG in the field of LED lighting has effectively opened the downstream seaport. It is estimated that LED business income will exceed small household appliances in 2013, and LED accounts for nearly 80% in the next year.

As the so-called "heroes in troubled times," the industry is nearing the outbreak stage, which is often a good opportunity for leading companies to show their talents. The competition between Sanan Optoelectronics and BDO Runda LED giants is still continuing, but it is not denied that they also represent the status quo and future trends of China's LED chip industry. With the continuous development of LED technology, the future domestic chip pattern will also be a new world in constant adjustment, competition, killing, and integration.