Shaoxing Xinshan Science Technology Co.,Ltd
Address: Dongfangyimai, No. 2, Pujiang Road, Shaoxing, China
Victory day, peace of mind! Countless martyrs have brought us peace and happiness, yet the arduous task of the rejuvenation of the Chinese nation is far from complete. In the LED industry, the patent war between China and foreign countries has never been interrupted. The price war of the middle and lower reaches of China is surging, and the war is showing signs of spreading upward. The world war of LED chips may be quietly approaching.
According to ubs electronic components industry research report released in August, 2014, the global supply and demand ratio from 130% in 2011 to the LED chip, fell to 104%, generally in a state of balance, with the rapid development of China's LED industry, LED chip companies benefit most in the industry chain.
On the other hand, in recent years, innovation and revolution have always been accompanied by the whole development of the lighting industry. In the middle and lower reaches of the competition, LED chip industry is not alone and carefree.
In the past two years, philips, samsung, osram and other international key enterprises have decided to sell or disown LED lighting business. On the face of it, these international companies are abandoning LED lighting because of their low profits. However, it is still under the pressure of the rapid rise of China's LED lighting industry chain.
Philips Lumileds, though its size and production costs are similar to its health-care business, are more "puny". The sale of the Lumileds stake is a huge relief for philips, which has been burdened with high costs and strong work pressure. After the sale of Lumileds, philips will be able to focus more on its brand and medical products business, estimating the market's output of about $130 billion. LED components and manufacturing businesses that are not-so-profitable (not so lucrative) can take less effort. In other words, philips may be sniffing the future of the chip industry. He is not willing to wade into the fray, but instead transfers his strength to his lucrative medical field.
Early in October last year, samsung in a statement: "we have decided to stop all the LED lights business market, apart from South Korea so that we can be more resources to focus on our core business areas, keep the LED component business activity in the LED industry, and continue to provide our customers high quality products and services." In other words, samsung's strategic layout is to focus its forces on the core and high-end areas. And the chip, which is the core of semiconductor lighting, is the top of the LED pyramid.
There is a big international sale, and Chinese companies are buying aggressively. On March 31, GO Scale Capital, a fund that combines venture Capital with oaktree investment partners, led the purchase of a stake of 80.1 per cent of philips's Lumileds. In this regard, the domestic LED people from the initial excitement, appreciation, to the most recent question, debate. Although the matter has been discredited, one point should be the industry consensus that Lumileds has a rich set of LED patents. LED's core patent technology has long been held by philips, osram, Japan chemical, Toyota synthesis, and the big five international giants, and China's LED enterprises are not going to market the patent blockade. And philips Lumileds is the most patent and technical strength of the big five. China's LED companies have an obvious intention to seek global chip status.
Then, in a notice released on July 19th, shentech revealed that its consortium had launched a bid to acquire a full stake in a us LED company. The industry suspects this company or Bridgelux (pry). Keep in mind, the announcement said, the company is engaged in the LED chip, the American encapsulation and light module in product research and development, manufacturing company, currently has more than 750 worldwide patents of LED chips and encapsulation technology, and with CREE (CREE. O) patent cross-licensing.
On August 25, bdo, announced that the company is planning a major asset and equity acquisition matters: 1, the company and the company's associated company intends to purchase the equity of listed companies in China, eventually to achieve control, for the purpose; 2. The company intends to jointly acquire the assets of a lighting enterprise outside China in cooperation with the state-level industrial fund, and it is estimated that the amount involved will be between 40 and 6 billion yuan, which has entered the substantive negotiation stage. The industry analyst believes that the acquisition of dehaerrunda is related to the sale of the lamps and lanterns business of osram. As a chip company, dehorenda will build a stronger industrial chain, and the downstream application area will facilitate the release and expansion of upstream chip production capacity.
Three Ann photoelectric company announcement on June 16, the second largest shareholder of fujian three Ann group co., LTD., with the national integrated circuit industry investment fund co., LTD. Signed share transfer agreement, three Ann group will its holdings of Ann photoelectric 217 million shares (accounts for about 9.07% of the total equity) transferred to the national industry funds, transfer the total amount is RMB 4.839 billion. On the 30th, SAN 'an photoelectric and SAN 'an group announced that the transfer of RMB 48.39 billion yuan SAN 'an group has been received, and the transfer of shares in the national industrial fund has been completed. The national industrial fund has officially become the second largest shareholder in SAN 'an.
The contract transfer is of great significance to national industrial fund contributive person mainly by the ministry of finance, CDB capital, China tobacco units such as the background, the investment of enterprise means has national credit guarantees. According to the industry, LED chip production center is moving to China, and domestic production capacity is concentrated to the leading manufacturers such as SAN 'an. Industry capacity will continue to expand dramatically in 2015, surpassing Taiwan as the largest production area for LED chips. National industrial fund investment in three photoelectric, Ann will be conducive to provide various resources guarantee for three Ann photoelectric, through industry chain integration, mergers and acquisitions at home and abroad, further promote the three photoelectric rapidly become bigger and stronger, to speed up the pace of international development and integration of industry chain layout.
Early on, state capital has been in the strategic position of very important packaging domain. Last September, guangsheng announced the company's star power. The star light electricity is domestic LED packaging industry leading enterprises, in the LED industry has more than 30 years of development history, through upstream and downstream industry chain extension, has realized the layout of the semiconductor epitaxy chip and application link. Guang sheng co., LTD. Is a wholly owned holding company, state-owned assets supervision and administration commission of guangdong province is the only company in the army, armed police and authorities handed over to the enterprise as the main body of political science and law, the development of provincial state-owned enterprises.
There is also a message that is less talked about in the industry. In July last year, the company completed a massive increase in shareholder and government funding under the unanimous support of its board and founding shareholders. Shareholders of the company and the original Giant Power Ltd, Taiwan wafer photoelectric, the nansha (fok ying tung foundation group members), and other investors joint guangdong guangdong branch financial investment fund, the common capital crystal electronics, makes the crystal electronic total investment capital to expand to $70 million. Guangdong yueke venture capital group co., LTD. Is a high-tech investment and financing platform established by guangdong provincial party committee and provincial government to optimize the allocation of state-owned assets and improve the overall strategic planning of the whole province. Crystal electronics is said to have an ability to be reckoned with in the field of LED chips.
On February 12th the international trade commission (ITC) voted to launch 337 investigations of some LED products and their similar components. The products involved are LED bulbs and LED chips and chip packaging components. The 337 inquiry was based on allegations made by Cree on January 12. The ITC finalized the prosecution of the case in addition to Feit electronics company, the United States Unity Microelectronics co., LTD., and two Chinese LED companies, respectively is xiamen Feit electronic companies in China and Taiwan east bay photoelectric technology co., LTD.
A few days earlier, Japan's chemical industry announced a lawsuit against the company for the infringement of its German subsidiary, making it a short time after a long period of a patent tug of war. In fact, in the smoke filled LED battlefield, the patent has become an enterprise to attack the city, the LED giants armed with knowledge weapons, a great deal of "patent to make the world". Situation worse by mainland companies, the international big companies with Taiwan companies through mutual alliance formed patent monopoly, cross licensing, patent protection, for mainland enterprises to form the absolute patent technology, which can lead to mainland enterprises passively confined to the domestic market, and has failed to open the international market because of patent problem. As the core of the LED, the chip is the core value of the chip, and the frequent and endless patent battles show that the chip fights are inevitable.
The acceleration of the LED industry is reflected in three aspects. First, technology constantly breakthroughs in innovation. The problem of high cost has been restricting the popularity of leds. In the backdrop of the countries have to promote LED lighting, LED technology in such aspects as material, preparation and application has made significant new achievements, including chip technology but also the first project of research scientists.
Second, continuous consolidation of mergers and acquisitions. The fastest way to integrate resources is through merger and acquisition integration among enterprises. The merger of large enterprises and equity acquisition has directly promoted the competition of resources. Last year, in the semiconductor lighting industry merger integration events a lot, but this year's m&a events much more special, and in the year to now, has been mergers and acquisitions or brewing has been in large-scale m&a events.
Third, the industrial chain accelerated competition elimination. The price war in the downstream application area has already been in the air, and the area of the packaging industry is entering a more intense phase of competition. Encapsulate field small mass production and technical ability is limited, it is difficult to compete with large enterprises, not raise ZengLi dilemma on small businesses will be further deepened, industry concentration will be up to the big enterprise. It's only a matter of time before the upstream chip wars, when the downstream and middle reaches of the game are on the upswing.
(1) the fight will be a battle between the various factions, led by the international giants. There may not seem to be a lot of gunpowder between the giants, but once the world war is over, the rivalry between the giants will intensify in order to gain world market share. To gain an edge in the confrontation, the giants will build their own camp by wooing two or three line chips.
(2) the war will be a complex union and struggle. The giants, on the one hand, are wooing two or three lines of chip companies, on the other hand, trying to curb their growth. Between giants on the one hand, compete for the world market share, on the other hand are combined with each other, similar to the present patent cross-licensing, weaving through the patent cross-license patent network, the vast majority of rising star of the isolation in the lucrative market.
(3) China will become one of the main battlefields of the great war, and the state will increase its support and policy towards the mainland chip enterprises. If there is no state backing, the mainland chip companies will all fall.
(4) some mainland chip companies are expected to rise in a complex combination and struggle. In order to better capture the mainland market, the giants will be interested in getting closer to mainland chip companies because they have national policy care. Some sort of co-operation between the giants and mainland chip companies is an opportunity for mainland chip companies.
(5) the giants that rely on the traditional technology will lose their power and decadence, the chip industry will become more centralized, and at the same time, they will rise to the new level of technology, and the industrialization of the LED will be basically completed. On the occasion of the 70th anniversary of the victory of the Chinese people's war of resistance against Japanese aggression and the world anti-fascist war, I wish to bless the LED Chinese core with the name of the nation!
SHAOXING XINSHAN SCIENCE TECHNOLOGY CO.,LTD.
Address：Room 303, Dongfangyimai, Pujiang Road 2 ,shaoxing, China