BDO Bengbu flip 020 in Jiangsu pilot plant

In his hometown, LED production industry advanced flip chip, BDO Runda chairman Wang Donglei ruddy.

Yesterday morning, de Ho Runda (002005.SZ) flip chip factory in Anhui, Bengbu, the first phase of the project put into operation, the project total investment of 2 billion yuan. Wang Donglei told reporters that the fourth quarter of next year after the two phase of the project put into operation, the annual output value of the flip chip factory in Bengbu will reach 1 billion 500 million yuan.

Wang Donglei also revealed that NVC and Elec-Tech (02222.HK, hereinafter referred to as "NVC") O2O (online and offline integration) channel model, from the first pilot projects in Jiangsu Province, covering more than and 300 city plan, two years to complete the O2O channel coverage.

He said that after the completion of the layout of the LED chip production capacity, next year will focus more on the brand and channel construction.

Flip chip new blue ocean"

China is one of the largest domestic LED chip enterprises. But from 2010 into the LED chip field since Elec-Tech had to face the grim situation of the industry: domestic LED chip production overcapacity, profit mainly rely on government subsidies.

We develop flip chip, is hoping to jump out of the 'Red Sea' into the 'blue ocean', enhance profitability. "Elec-Tech group vice president Mo Qingwei told reporters that the LED chip technology.

Previously, Elec-Tech in Dalian has been packed LED chip base. In May 2014 Bengbu voted to build a flip chip base, as of December 9th the first phase of the project operation, every month can accept 15000 piece of 4 inch wafer; next year in the fourth quarter of the two phase of the project put into operation, every month can accept 50000 piece of 4 inch wafer, then the BDO flip chip and dress chip epitaxial wafer acceptance number will be quite.

Mo Qingwei said that the production of flip chip, a 4 inch wafer cutting 25000-27000 chips, so Bengbu after the project is put into production is expected to produce 5 billion grain, can produce 5 Watt LED bulb lamp 125 million, 15 Watt LED lamp 43 million 300 thousand, 4K Ultra HD TV backlight lamp 22 million 200 thousand, instead of 18 million 800 thousand.

Although the flip chip than the expensive dress chip 20%-50%, but Mo Qingwei believes that the advantages of flip chip is higher luminous efficiency, better stability, so a flip chip can when the two or three dress chip can save the cost of the system.

He said the current Elec-Tech LED flip chip packaging factory, customers, in addition to BDO NVC, there are street lamps factory, car plant, mobile phone factory (such as ZTE), color TV factory (such as Konka), the future will be extended to the field of indoor lighting.

It is understood that, since 2006, iPhone mobile phone flash using a flip chip LED. Before the global LED flip chip mainly by PHILPS, OSRAM and other supplies, the Elec-Tech breaking the monopoly of European companies in flip chip on.

The industry believes that the biggest obstacle to the development of LED flip chip now: one is the only one of the two upstream suppliers, customers of large-scale applications still have concerns, fear once out of stock supply chain; two is the downstream packaging factory matching is not enough.

In this regard, Mo Qingwei said, is willing to open cooperation Elec-Tech, application of outlet and downstream together to get through the LED flip chip. Other domestic LED chip manufacturers are doing related research and development. Many medium-sized packaging companies, investment has turned to flip chip packaging. "Flip chip usage will come next year, with the increase in production, the price will be better and better. "

Wang Donglei believes that the Bengbu factory production, will enhance the competitiveness of Elec-Tech chip, improve Elec-Tech profit, because the gross profit margin is higher than forward flip chip chip.

O2O do vertical electricity supplier

In December 2012, the acquisition of BDO NVC, become a major shareholder, in order to get through the LED chip downstream to the sea". This year's "create a great sensation to quell the NVC storm", the "sea" was finally smooth.

Who is also chairman of NVC, interim CEO Wang Donglei said that next year, NVC lighting products, will use more Elec-Tech chip, is expected to purchase 90% BDO NVC chip, so as to promote the improvement of the performance of elec-tech.

On this basis, Elec-Tech will be 6-7 billion LED chip orders from nvc.

But this would benefit coordination between the two listed companies involved in NVC, Elec-Tech, chip sell expensive, BDO deli; selling low, NVC is profit. In this regard, Wang Donglei said, "must be fair pricing, the same chip price, than NVC before purchasing better, otherwise they will face the small and medium-sized shareholders sued. We have no right to vote when the board of directors and the shareholders' committee. "

Wang Donglei had an interview when he said that the future will further increase the BDO NVC equity, if Saif would transfer NVC equity, Elec-Tech willing to take over". Yesterday, when asked by reporters, the person in charge of the fund has expressed the intention to transfer, Wang Donglei smiled and said: "you go to ask Yan Total (Yan Yan). "

Moreover, Wang Donglei said that although this year the acquisition of the assets of NVC lighting Elec-Tech suspended, but in the long run, the lighting is the trend of the integration of assets. The future will be more focused on Elec-Tech LED chip and small appliance business.

After the Bengbu plant put into operation, the basic layout of the production capacity of the LED chip on the chip. Wang Donglei said that next year will focus on the brand and channel construction.

NVC is the layout of O2O channels, Wang Donglei said, is to develop a detailed plan