2012 LED industry giants marriage pain: easy integration of mergers and acquisitions difficult

If have to make it count on the 2012 LED industry event, NVC will occupy at least two important seats. The first is the Wu Changjiang home in May last year triggered infighting storm, the upper and lower NVC exhausted; the second is the end of the $1 billion 650 million acquisition of 20.04% stake and NVC NVC, did a "marriage".

For marriage and BDO NVC, insiders said that optimistic. NVC has a mature brand and improve the marketing channels in the traditional lighting field, as the domestic lighting industry leader is not empty. However, in the emerging field of LED lighting, the continued evolution of its OEM NVC development model, precipitation technology limited, especially in the upstream areas of the chip is completely blank. The lack of core technology, leading to the future competitiveness of the NVC is just for the marriage of NVC development paved the "core" light avenue.

And de Ho Runda in the past 3 years, spent $9 billion to complete the extension from the LED chip to the chip, from the package to the application (lighting, display) of the complete industrial chain layout. Therefore, how to get the product and technology into commercial profits, and then build the LED global brand, has become the most important issue to consider elec-tech. The use of NVC shares through the NVC, mature brand and perfect marketing channel, can easily open the key pathway Elec-Tech seize the LED lighting market.

Wu Changjiang claims, and Elec-Tech cooperation, established a benchmark for the industry integration, will lead the industry from the early stage of the development gradually become standardized scattered. This marriage, also marks the integration of the LED industry reshuffle has been surging undercurrent.

Upstream: horizontal integration rapid expansion

In 2010, the upstream chip shortage continued from the beginning to the end of the year, the chip manufacturers earn pours, a focus on upstream chip investment spree begins. However, in early 2011, chip overcapacity alarm has sounded.

EPISTAR chairman Li Bingjie believes that the mainland LED industry subsidies for the end of 2015, chip companies may be the remaining 5. Zhang Xiaofei also mentioned that by the end of 2013 where the number of MOCVD in the following 10 chips will disappear. It is understood that the mainland has more than 60 chip companies, which means there will be more than 3/4 of the enterprise will be eliminated.

Large companies want to expand the strength of mergers and acquisitions, consolidate their leading position, SMEs want to be able to save the merger, which is particularly evident in the series of mergers and acquisitions in the crystal power plant.

Last August 9th, EPISTAR and Jia Jia held seminars, and crystal electric through the conversion of shares, a subsidiary of crystal electric. Jia 4.85 shares of common stock for the 1 shares of the transaction amount of the electric hair, NT $4 billion. You said the eternal crystal electric current, wide grain production scale, crystal electric invest at least NT $8 billion to achieve, so it is worthwhile for trading on crystal electric. Prior to this, the acquisition of the electricity on the state of the union optoelectronics, as well as arsenic, arsenic, photovoltaic and photovoltaic power to become the dominant chip in the field of crystal power chips.

Jia Dai Zixiang said Jia into the crystal power, use crystal electric technology and sales of the existing platform, use crystal electric OEM to reverse wide grain losses. At the same time, crystal electricity is no longer tired of the transfer of investment, can enhance the overall operating performance.

In November of the same year, three optical announcement, a wholly owned subsidiary of Xiamen Sanan Optoelectronics Technology, intends to use 506 million yuan to raise funds (RMB) for the Taiwan canyuan photoelectric private 120 million shares of ordinary shares, the price per share of about 19.6 yuan nt. The implementation of this scheme, an optoelectronic canyuan photoelectric will hold 19.9% of the shares, becoming the largest shareholder of canyuan photoelectric.

The outside world, Sanan optoelectronics as the current domestic LED epitaxial wafer and chip leading, large-scale production, after Taiwan crystal electric products, concentrated in the low-end LED chip market. Canyuan is Taiwan's second largest chip manufacturers, the main market in Taiwan local market concentrated in Asia and South Korea, has a good customer base in the high-end chip market, both can complement each other.

Canyuan photoelectric chairman Jane tomoto said, canyuan photoelectric capacity is too small, cost control ability is weak, and an optoelectronic production scale, low cost. With three optical cooperation, canyuan addition can reduce the cost, can also be used to seize the chip market, Sanan optoelectronics.

The three, with the low-end chip market increasingly saturated, gross margin fell sharply, three began to force in the high-end LED chip product development. At the same time, an optoelectronic three limitations in the domestic market, the urgent need to break the patent barriers to enter the overseas market. Canyuan photoelectric has 200 patents in the LED chip technology, is the ideal partner for an optoelectronic three.

Industry sources, the main driving force of mergers and acquisitions between upstream chip companies to expand production capacity and the market, access to new technologies and patents. Therefore, they choose the M & A objects are technology, patent or market advantage of enterprises.

Downstream: vertical integration to seize the market

Since the beginning of 2012, LED chip and packaging overcapacity, so that the whole industry is tired. Led to the focus of the industry began to market more potential downstream lighting applications tilt, LED lighting has become the new 1 round of investment hotspots.

According to the survey data show that in the first half of 2012, the overall size of China's LED indoor lighting market showed substantial growth, an increase of nearly 36%. Meanwhile, the number of new LED indoor lighting companies nearly 1000. Expected 2012 full year