LED industry mergers and acquisitions midstream and downstream enterprises from the direction of integration

After experiencing a deep shuffle, LED industry mergers and acquisitions followed. After the acquisition of NVC, recently with Sanan optoelectronics transatlantic mergers and acquisitions have caused the industry attention.

In the recently held LED industry forum, many industry insiders believe that hot industry integration, vertical integration is conducive to improve the technology and market channels, and some of the listed companies in the direction of integration on the controversial. Wang Lianghai, chairman of the same side believes that the middle reaches of the industry can be integrated downstream, do channel based lighting manufacturers. Ruifeng photoelectric chairman Gong Weibin believes that midstream enterprises should be upstream integration, more conducive to the integration of mergers and acquisitions between enterprises.

Since the end of last year, the country star power, Elec-Tech, Sanan optoelectronics represented several scale stronger listed companies choose the whole industry chain integration.

Efforts to integrate the greatest Elec-Tech, since the second half of 2012, Elec-Tech has NVC, while other investment company assault. Elec-Tech has been completed from LED wafer, chip to the package to the application (lighting, display) the integration of industrial chain layout.

"Lighting channel of the game is over. "In the eyes of Elec-Tech chairman Wang Donglei, LED lighting industry integration, the key is to have the terminal market, only through the channels occupy a certain market share, in order to ensure that enterprises, especially the upstream chip and packaging companies to survive in the fierce market competition. Therefore, through mergers and acquisitions, compared to the new channel, more likely to occupy the market.

LED industry will be similar to the home appliance industry, the future may be only a few oligarchs in the competition. LED Zhang Xiaofei, President of the high industry believes that vertical integration will improve the technical level of the industry chain and the development of the market. In the future, the number of enterprises in the middle and lower reaches of the industry will be greatly reduced.

Although some LED listed companies through mergers and acquisitions to build the whole industry chain model. But some listed companies are still cautious, and there is some controversy in the direction of integration.

Whether it is television, computers, or LED, the future is only two kinds of enterprises, one is the leading technology companies, one is the channel leading enterprises. Wang Lianghai, chairman of the same side believes that enterprises in the middle reaches of the industry can learn Lenovo, as soon as possible downstream integration, do channel based lighting manufacturers. Tongfang currently does not integrate lighting companies, the company focused on the technical capabilities of the chip.

Elec-Tech, about Sanan optoelectronics and other enterprises mergers and acquisitions, Wang Lianghai said: "since so many of the upstream business integration lighting enterprises, we will integrate the lighting business. There are many lighting companies do not have chips, we need support. "

Ruifeng photoelectric chairman Gong Weibin believes that midstream enterprises should be upstream integration, more conducive to the integration of mergers and acquisitions between enterprises. "Walk down, to me such enterprise is concerned, it is a very big question mark. Gong Weibin said, for example, the company had 100 important partners, after the integration of the downstream there is only one partner, and completely dependent on him, the middle reaches of the enterprise is very dangerous.

"I have the possibility of integration with upstream. Gong Weibin believes that the chip with the package, should not become the two industry, it is actually the output light source. The integration of the chip factory with the packaging factory is likely to be faster and easier to succeed. If the integration of the downstream packaging plant, then relatively uncontrollable factors will be more.