How do LED companies compete for the market?
The shopping mall is a war without gunpowder. The Chinese market is always a tempting cake. Driven by economic globalization, and under the protection of the trump card of the WTO, anyone can enter the Chinese market and eat the domestic market. Companies, such as Nanfu Battery, occupy most of the domestic market. When foreign battery companies want to enter the Chinese market and make money from the Chinese, but because our consumers are accustomed to using Nanfu batteries, it is difficult for foreign companies to sell batteries. If the domestic market grabs the market and the foreign businessmen’s batteries cannot be sold, the foreign businessmen will buy Nanfu to wipe out competitors for their own brands. Whether it is Nanfu batteries or the foreign business’s own battery brands, the profits gained from sales in China will be all If it is obtained by foreign businessmen, the government can receive taxes, but China does not have its own battery brand. Then foreign businessmen will gradually reduce Nanfu's production, and then Nanfu will slowly disappear from the market...
The LED market is also turbulent. Numerous multinational giants with an active sense of smell have turned to battle one after another, rushing to grab a beachfront in the LED market. The global LED and lighting market giants have shifted their R&D and market focus to the LED lighting market. Eight of the world’s top ten LED giants have set up production bases in China in order to tightly control the upstream of the LED lighting industry-the LED chip market , In order to change the format of lighting giants’ market share in China’s traditional lighting market that is difficult to exceed 1%.
On April 2, 2007, Cree announced the completion of the acquisition of Huagang Optoelectronics Parts Co., Ltd. Huagang Optoelectronics (Group) Co., Ltd. controls approximately 9% of Cree's shares and becomes Cree's single largest shareholder. This strategic merger involves the three main business areas of the Huagang Group, including the LED Packaging Division, the Module Division, and the Display Device Division.
For example, Philips acquired Guanjie in 2006 to expand its electronic communications business in China, and acquired Pentium in July 2011. This acquisition reflects Philips’ commitment to build another market in China. Philips will rely on its understanding of the Chinese market. , To expand its opportunities in other markets in China.
In August 2011, Cree announced the acquisition of Ruud Lighting Incorporated, a lighting manufacturer, with 583 million US shares in cash and a share swap. Combining two highly complementary LED innovators, this acquisition allows Cree to expand its leadership position and increase the use of high-efficiency LED lighting.
Through this acquisition, Cree has a complete industrial chain from epitaxial wafers, chips to packaging, changing the single marketing model that only sells chips in the past. It provides Cree with a low-cost manufacturing platform and helps supplement Cree's investment in LED chip technology, intellectual property rights and marketing. It is a strategic step for Cree to enter the semiconductor lighting market.
The biggest significance of the merger is that for the first time an international-level LED upstream epitaxial wafer and chip company has appeared in Taiwan in my country. In the future, it will be in a more favorable position for strategic alliances and cross-licensing with major international manufacturers.
For the LED industry, which has developed very recently in my country, but is at an unusually fast pace, we must proceed cautiously. Don't focus mainly on the market. You should pay more attention to the research and development of core technologies, the improvement of product quality, and the promotion of corporate brands. It is also a strategy to form alliances and groups to resist foreign companies.
In this regard, Taiwanese companies are doing relatively well. On September 28, 2006, Epistar, Primarsen Optoelectronics and Lianyong Optoelectronics announced the merger, and Epistar is the surviving company. New Epistar will leverage on the Group's advantages to expand its production capacity and become the world's largest red LED factory and the fourth largest blue LED factory.
On March 28, 2007, Yaofu Technology and Zhoulei Technology announced a merger at a conversion ratio of 1 share to 1.7 shares. The surviving company after the merger is Yaofu Technology. This merger is considered by the industry to be a group of small and medium LED manufacturers. A model of the great powers.
