Resist the LED boom and analyze the LED industry expansion of Jingdian and Lite-On Technology

Founded in 1996, Jingyuan Optoelectronics Co., Ltd. was assisted by the Optoelectronics Institute of Taiwan Industrial Research Institute. It was jointly established by Guangbao, Yiguang, Huaxing, Dingyuan and Yuhong. It mainly produces LED epitaxial wafers and chips, belonging to LED. In the upper and middle reaches of the industry, the chips produced by the downstream are packaged in the downstream, and can be made into various application products according to market demand.

Jingdian has always focused on horizontal expansion. In 2003, it merged with Jingmao Semiconductor. At the end of 2005, it merged with Guolian Optoelectronics. In 2007, it merged with Yuanfang Optoelectronics and Lianyong Technology. It became the world's leading manufacturer of epitaxial wafers and chips, and extended with other LEDs. There are different strategies for the vertical integration of the upper, middle and lower reaches of the plant. Since crystal power is not directly involved in the competition between downstream industries and customers, it is often the first choice for downstream manufacturers to find partners.

Formerly known as Guangbao Electronics, which was established in 1975, Lite-On Technology has a long history and is the first electronics company in Taiwan. It set up a factory in Southeast Asia in the early years and is a pioneer in the LED industry in Taiwan. In 2002, Lite-On Electronics merged with its subsidiaries such as Xuli, Zhifu and Yuanxing Technology, and renamed Yuanxing Technology as the surviving company and renamed it as Guangbao Technology. It has a wide range of industries. The four core businesses are LED and power supply. Suppliers, enclosures and imaging products.

Create a double niche
In the LED industry, Lite-On started as a downstream package, but actively developed its layout to the middle and upper reaches, seeking to establish a complete vertical supply chain. As early as 1983, Guangbao established Guanglei Electronics to engage in mid-stream chip production. In 1996, it also participated in the joint venture to create crystal power, covering LED episodes and chips.

In terms of downstream products, Lite-On is also the second Taiwanese manufacturer to obtain the authorization of the German technology leader Osram White LED after the Everlight. In 2007, it has acquired more than 30% of the US LED lamp market share. The LED number and the street lamp market have worked hard to cultivate the LED lighting field, and have successfully entered the "Ten Cities and Ten Thousand Miles" LED street light program in the mainland market.

In 2011, the mainland launched the “Twelfth Five-Year Plan” to reward energy conservation and environmental protection industries. LED is regarded as one of the key industries because of its advantages of high efficiency, energy saving and long service life.

The Changzhou Municipal Government of Jiangsu Province has actively introduced LED epitaxial technology to provide subsidies for those who intend to set up factories in Changzhou, including the complete tax exemption for machine imports, and has absorbed many Taiwanese businessmen to invest.

In September 2011, in view of the fact that the downstream packaging company Guangbao has settled in Changzhou, and the subsidies provided by the local government are also quite favorable. After considering the dual structure of cost structure and industrial integration, Jingdian decided to cooperate with Lite-On and mainland color TV manufacturers. Konka jointly invested 120 million US dollars to establish Jingpin Optoelectronics in Changzhou. 60% of Jingdian holds a dominant position. Lite-On holds 30%, while Konka holds 10%. Jingzhou Changzhou Factory is expected to become the largest production base of Jingdian in the mainland.

According to the original planning, the crystal product Changzhou factory will adopt the mode of three-party division of labor cooperation, crystal power leading production and technology, the output of the chip supply Lite-On, so that the Guangbao ammunition can actively attack the mainland LED lighting market pie, Konka can Jingpin meets the needs of its LED TV backlights, and Jingjing has two customers, Guangbao and Konka, which are also beneficial to Changzhou to maintain full capacity. As for the transportation time and cost saved by the local supply, the three parties can share a certain cost advantage, which is mutually beneficial and has its own advantages.

Unexpectedly, due to the downturn in the global economy, Konka suddenly retracted from the crystal products in less than half a year after the opening of the crystal products, and its 10% shareholding was transferred to Jingdian. Jingdian said that Konka's exit will not affect the operation progress of the crystal products, and everything will continue to expand according to the original plan and market demand.

Resist the downturn
In November 2011, Jingdian first signed a strategic agreement with Sunshine Lighting, Asia's largest energy-saving lamp manufacturer, and then cooperated with another mainland company, NVC Lighting. In the future, these two companies are expected to use crystal LED photo-chips. The proportion of crystal electricity in LED lighting is expected to grow from 20% to 30%.

At the same time, Lite-On also signed a strategic alliance contract with six global lighting manufacturers in January 2012. LED lighting sources and modules will be supplied by Lite-On, and the main production base may be the Changzhou factory of Lite-On and Crystal.

Recently, Jingdian has not only established a crystal product with Lite-On, but also established a joint venture with Luen Chan in Shandong to establish a Guanquan LED factory, and signed a strategic agreement with Sunshine Lighting and NVC Lighting.

The frequent use of crystal power has changed significantly from the previous passive waiting for the mode of the downstream packaging factory. Does it mean that the future will be more active in the future, and strive to jointly develop customer products with the packaging factory, whether it represents the beginning of the strategy of the crystal power to turn from the upper middle The horizontal expansion has entered the vertical integration of the upper, middle and lower reaches, and needs to be continuously observed.

In fact, in the face of the drastic changes in the market in recent years, the LED industry is going to go from here, and the opinions of the operators are quite different. It can be said that "there are different numbers, each sings each tone", like the Eight Immortals crossing the sea, each show magic. It is more common that, regardless of horizontal or vertical, the LED industry must continue to integrate, in order to reduce costs, improve quality, and enhance competitiveness. After the current low supply of oversupply, it will be able to meet the expected peak demand in the future.

(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)

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