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LED Industry Change And Challenge: About The Price, Say In Who's Hand?

- Jan 17, 2017 -



"For a long time, when it comes to horizontal integration, we all think it is very difficult, so difficult in where? A big enterprise merger and acquisition of a small business, the two can do the same, why do you look for another place to manage?" In 2016, LED chairman jack zhang put forward at the annual meeting.


Upstream, in fact, basically do not have the small business acquisitions, and update the equipment capacity of price is much higher than in the past. Although packaging according to the product line can do some combination, but now a lot of small and medium-sized packaging companies still don't feel very close to "death".


At present, the integration of the whole LED industry chain, mainly based on the integration of lighting enterprise is given priority to, the others are all upside down, such as middle reaches up way of capital increase, this way of capital increase is not mergers and acquisitions, it is in order to guarantee the stability of the supply chain, the stability of prices, this also is enterprise based on the long-term consideration.


Another part is the overseas mergers and acquisitions, have success, of course, there are failures. Overseas m&a mainly include acquisition of large and medium-sized enterprises and large enterprises, transnational m&a, among them, the acquisition of foreign multinational acquisition is always China, China to truly entered the international channel used this way.


Some companies are into the new energy industry, such as hong god remit from car networking until the new energy vehicles, even to the lithium batteries; Also have a plenty of extend from screen to education, sports, etc. In fact, what kind of future education will make it, we still need to wait and see. But for now, some enterprise after acquisition of unexpectedly to the LED, it is worthy of reference.


So, on the middle and lower reaches of the integration of the industry, will form the supply chain's camp?


Wafer photoelectric min-hsun hsieh, a deputy general manager, said the integration will become a campaign against the glory of the kingdom campaign, it is inevitable. Our camp is start from the end, from an upside down looking for packaging partners, to put it into a camp, each application will have different camps.


It is worth mentioning that wafer photoelectric was among the first to do AC, even samsung early without it.


So, packaging companies will choose to camp?


The starlight electric research and development center, deputy director of the zhi-guo xie said that encapsulate camps have formed, including the middle and lower reaches, stronger now. Although there are some packaging companies say, but it is still weak.


In fact, the starlight electricity oneself also is to have the upstream, so crystal tyco electronics?


"We chose the specialized division of labor cooperation partners, this camp is exist. Encapsulated at the middle stage, affected by upstream prices and terminal, guiding and coordinating in the middle, more is through the technical solution to deal with." Crystal electronic LED division general manager Zheng Yongsheng mentioned.


There is no denying the fact that for middle encapsulation, about price is no too much voice.


In lianchuang optoelectronic President sun's view, "for this camp, can be divided into two types, one is within the group, is a kind of foreign, and the most powerful faction is one of the most vitality."



Ming, general manager of microelectronics Li Zhaohua thinks, "we are also vulnerable groups, our strategy, integrated circuit has some differences compared with the traditional, we are to create performance, function, use it as a life, to develop into products."


Is really helpless, in that case, the upstream downstream will bear part of the most can't afford to boil or downstream. Because, once the middle line stop, it was very painful for the downstream. Jack zhang suggested that "everyone still for a little bit relaxed upstream, after all the upstream is endured years of suffering."


With light electricity environment general manager liu said, "upstream is luckily no alliances, in chip these manufacturers have not formed a true alliance. But for tongfang, in 2016, we have no communication with other manufacturers, anyway is tongfang walk first one step, adjust the price."


To sum up, in 2017, should not be up in a pattern, it is a mess. Is everybody through consultation, communication, understand the essence of rose in where, but also by each link to reduce some unnecessary costs, including the human cost, management cost, etc.


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