Hit the "sandwich layer" embarrassing situation of LED Taiwan enterprises in Waterloo?

The troops in mainland China, through large-scale production to expand the brand influence and market share, kaijiangtuotu in lots of gold in the feudal lords vying for the throne. However, the performance of the Taiwan LED manufacturers in the mainland is not satisfactory, the majority of Listed Companies in the first half of 2013 turnover continued to decline. Recently, the network stir LED Taiwan enterprises' sandwich 'status "embarrassing dispute again LED Taiwan enterprises pushed in the teeth of the storm.

Once the LED Taiwan enterprises want to make a continental field with vigour and vitality, whether by the "golden egg" has become a "mine", the mine will not be trampled? LED Taiwan enterprises will encounter in Waterloo, the position? Therefore, we visited a number of LED Taiwan enterprises to conduct research.

Taiwan enterprise performance panic?

The application of LED for the outbreak of the first year and want to expand the scale of consideration, many Taiwan LED enterprises will quickly transfer to the mainland business, however, the problem with the demographic dividend gradually disappear in mainland, rising labor costs, competition, but also makes the survival of Taiwan enterprises in mainland China "Alexander".

Statistics show that in 2012, seven listed companies in the Taiwan area, in addition to the two to achieve profitability, the majority of manufacturers loss. As the crystal electric chip enterprises in Taiwan a few years ago, the industry overall poor market, companies still maintain profitability, but by the Taigu, low-cost chip Guangjia two Holding Company serious loss, drag and shock, crystal electric eventually fall". The decline in the performance of these companies has also caused the development of Taiwan enterprises in the mainland dispute, all the media also broke the development of the sandwich, acclimatized and other voices.

The awkward position of "sandwich layer"

From packaging factory to understand, EPISTAR chip prices fell 20% last year, while the three optical chips price decline is more than 25%, especially since beginning Sanan optoelectronics dumped goods and price action tactics also let Elec-Tech, chip market price war escalated. Chip price war in addition to its own supply of raw materials, but also with the downstream LED display, backlight, lighting products, a substantial price reduction.

"Taiwan LED enterprise has always been to win the market with high quality, keep the quality cost is hard to fall, but in recent years, LED products decreased greatly, so the lighting business in Taiwan and mainland enterprises product competition is not a price advantage. "A Taiwan enterprise staff said. According to statistics, in 2012 the Chinese mainland LED chip prices continued to decline in 2011, the average price fell by 32%, part of the product decline is as high as 50%.

In the second half of 2012, LED bulb prices in the first half on the basis of at least about 20%. Even if prices fall so fast, in 2012 the market penetration of LED lighting is only 7%, the biggest factor is the price. Last year, many companies are at the cost of promoting the market price even parity lamps, has been close to 3 yuan /W, and the conduction effect on the upper reaches of the lower reaches of the price is very obvious, especially China, a huge base of packaging factory in order to seize market share, began to switch to more price cheap, chip production. After all, compared with the Taiwan region and the United States and Japan and South Korea chips, there are about 10% of the mainland chip price difference.

"We started three years ago and the Taiwan enterprise products, at the beginning of the first few years of sales is really good, from the beginning of last year, the market has become more and more difficult, the business is very difficult, many enterprises in Taiwan sales decline this year, our dealers turnover also fell. "One dealer complained.

Despite the high quality LED lighting products in Taiwan, but with the United States and Europe in the competition of products, brand reputation, is not competitive, OSRAM, PHILPS, GE and other products, although the price is relatively high, but they have a very good reputation in the market, occupy the absolute dominant position in the high-end market.

A lot of Taiwan enterprises without government subsidies, the main business is still in Taiwan enterprises, can stand in the mainland itself is not easy. An industry source said that last year the mainland local government has lowered the upstream project subsidies, but also hope that the mainland chip companies are free to participate in market competition.

With the 'sandwich' to describe our Taiwan enterprises in mainland China's development is very appropriate, our brand has always been in an awkward position, on the one hand, crowding out low-cost products and domestic brands of products, on the other hand, extrusion by the international high-end brands and domestic policy advantages, is not easy to do. Chen Feng, a person in charge of Taiwan enterprises reluctantly said.

"The development of Taiwan enterprises in mainland China is relatively good, although the rapid development of the industry for two years, but there are still many problems, these problems not only Taiwan enterprises just met, but including 10000 enterprises in the mainland facing, in fact over the past few years, such as Elec-Tech and an optoelectronic chip companies listed earnings we can see that the removal of massive government subsidies, their main business is almost loss or low profit. A person in charge of Taiwan enterprises in an interview with a little excited.

Recently, with the release of the second quarter of Taiwan LED plant also put out a lot of questioning. Compared with most of the grain factory is still at a loss, LED packaging factory is relatively good overall performance in the second quarter, the 7 listed packaging factory, only, Wang Qi Baihong are still a loss per share of 0.07 yuan NT (below) and 0.44 yuan, the other is profit, and