LED lighting industry focus on vertical integration complementary advantages

Recently announced a light emitting diode (LED) upstream chip production, then triggered a market that might go into integrated LED's production line, and then divide the original is in the middle and lower reaches of the market doubts about the pile up in excess of requirement. The industry pointed out that industrial chain must start focusing on vertical integration, in addition to the quality and efficiency of integration in order to improve the production technology and low cost; horizontal integration with traditional lighting manufacturers already strong access advantages, is also crucial to business strategy. The general manager of industrial group limited Zheng Jianwen said that Kerry has been used LED function to promote situational lamps, cabinet lights and other non main lighting products, can have a higher added value.

Because the LED technology into the threshold is low, in the traditional lighting market pie will snatch, the market has become fragmented red sea. Neoneon general manager Zheng Jianwen said, the technology go hand in hand, the bigger trend will still have to pay attention, especially in the upstream into AUO announced wafer manufacturing, rely on its strong capital and production capacity, to integrate LED one-stop production line of the possibility of high, middle and lower reaches of the structure leads the industry will face no small impact. In view of the LED industry in the future, Zheng Jianwen pointed out that, in addition to smile through inspired theory, to the development of creative mode "and" brand management ", as the technology matures complete layout, with the world-class factory competitiveness, with its capital and productivity advantages form the bigger trend will not be avoided, the manufacturer of Taiwan to be effective in coping, in addition to accelerate industry alliance, strengthening R & D and production layout, the government should implement the policy of expanding domestic demand and promoting the market, to break through the current LED into the fate of price competition.

Especially AUO announced the investment of LED upstream chip in this year, immediately caused concern to the industry, Zheng Jianwen stressed that when their product line is not strong enough, no more again good also can not play a role in marketing. The reason why, in addition to the technology and the price of LED needs further break the bottleneck, the traditional and emerging LED lighting, organic light emitting diode (OLED) lighting market mixed chaotic situation, the main reason is caused by finding a market niche perspective. And grab into the upstream chip manufacturing industry chain in the future to add a lot of variables, how to resist the invasion of large manufacturers, to avoid the trend of the formation of large competitors, but also the future of the development of LED facing the subject of Taiwan.

Taiwan currently in the LED manufacturer have popped up like bamboo shoots after a spring rain, from raw materials, epitaxial single crystal, the upper reaches of the middle reaches of the grain production, cutting and testing to the electrode, solid crystal, packaging downstream, market price competition intense chaos has emerged. Then continued to get into the manufacturers still very confident, mainly due to the traditional lighting market hundreds of billions of dollars a year has attractive, environmental advantages of LED is regarded as an inevitable trend, even cultivating traditional lighting market and OSRAM (Osram), singular (GE), PHILPS (Philips) light source and lamp production manufacturers positive in LED. When the fighting in the LED market price competition intensified, the drama has been staged, but there are still many manufacturers are willing to invest into play, show does have a huge business opportunities.