Future LED industry chain depth integration development trend is obvious

With the rapid development of the industry, industry competition, industry consolidation continued to deepen. Since September 2012, the industry has been 6 large-scale integration of mergers and acquisitions, amounting to 4 billion 95 million, involving three places, mostly joined forces, resources industry giants to focus speed competition to strong development.

September 2012 Taiwan lextar electronics and Wellypower merged into xinlongda, December Elec-Tech NVC April 2013; photoelectric acquisition Rui technology which, June is the peak, Taiwan billion light to be denounced 390 million NT acquisition lamps factory; the mainland, Sanan optoelectronics circle the acquisition of U.S. Luminus, is currently Taiwan canyuan shares, and the establishment of a joint venture Jiawei shares and lighting company. In addition, there are plans to invest 47 million in the us far photoelectric wholly-owned subsidiary, the goal is to purchase foreign high-quality assets, technology or company.

In the early period of 2006~2007, Taiwan LED industry formed a complete industrial chain and industrial pattern of several independent giants through mergers and reorganization. In recent years, under the active support of the country, the rapid development of the mainland LED market, industry competition intensifies, enterprises began to differentiate between. The face of the market, especially the lighting market expansion soon, through mergers and acquisitions, integration of resources, strong combination, complementary advantages to enhance the overall strength in order to gain the competitive advantage in the market when the outbreak has become the consensus of many enterprises.

2013, the industry has entered a critical period of integration, inter enterprise collaboration model requires the vertical and horizontal cooperation in the industrial chain. 2012 upstream production capacity of structural overcapacity, competition, mergers and acquisitions to a certain extent, reduce duplication of investment, reduce the vicious price competition, enhance the overall ability to resist risks. On the other hand, the outbreak of the lighting market is expected, many companies choose to complete the production capacity through mergers and acquisitions, channels, patents, talent and market resources integration.

Overall, the first half of the M & A has several characteristics: 1, the industry chain vertical merger more, such as Elec-Tech acquisition of NVC, the acquisition of U.S. Luminus shares Sanan optoelectronics, Taiwan canyuan etc.. Through the integration of vertical integration of mergers and acquisitions, enterprises get through the upper, middle and lower reaches of the whole industry chain, to achieve the overall layout, to achieve synergies. 2, LED lighting channel layout and industry integration in parallel, the layout of the market channels to promote joint and collaborative enterprises. Such as Samsung through Zhejiang and Hui Lighting LED lighting, open field; Taiwan, three billion light with the acquisition of overseas markets, with the help of BDO NVC lighting distribution channel, LED package leader Mlinson, the family source (MLS) this new brand entered the Taiwan market. 3, the first half of cross-border mergers and acquisitions increased significantly. The enterprise transnational merger an important driving factor is the patent and the international market, LED's patent term master in several international giants, especially the chip link, through the acquisition of foreign companies can bypass the patent barriers, international patent manufacturers support, participate in the system of international patent technology, more words right.

Expected, with the rapid growth of the industry into the period, the combination of brands and channels, the depth of integration of the industry chain trends in recent years will be intensified, Matthew effect will soon appear.