Samsung's local LED chip makers, such as Sanan Optoelectronics, Hefei Blu-ray and Nantong Tongfang, which are rushing into the domestic LED TV backlight supply chain, may face greater pressure. Because, the global LED chip giant Taiwan Epistar is tying up the mainland color TV manufacturers in the form of a joint venture established in the mainland.
“The basic strategy for Jingdian to enter the mainland market is to find a partner that can release production capacity and to include it as a shareholder of the joint venture company to form a win-win alliance of interests.†A few days ago, Jing Bing Chairman Li Bingjie once again worked hard from Taiwan rushed to Shenzhen to participate in the senior engineer LED engineer conference, one of which is to hope to find more LED professionals and cooperate with Jingde’s mainland expansion blueprint.
On April 8, Jingdian, Guangbao and a mainland power plant started investing 600 million U.S. dollars in Jingzhou Optoelectronics in Changzhou. On October 8th, Jingdian reached an agreement with Evergrande and Great Wall Development to jointly invest USD 160 million in a joint venture company in Xiamen.
“Next, there will be a joint venture company, which is currently in negotiations. Jingdian plans to invest NT$30 billion (approximately RMB 6.7 billion) in mainland China in the next five years, and NT$15 billion in the first three years of the first three years. "Li Bingjie disclosed that one of the Jingpin Optoelectronics shareholders is a mainland color TV manufacturer. Since the cooperation still needs the approval of the relevant government departments of the mainland, it is estimated that all the processes will be completed soon. The establishment of a joint venture company with Great Wall Development is also aimed at TPV Technology, a subsidiary of Great Wall Development’s parent company China Electronics and Information Industry Group (CEC). “TPV Technology is already the world’s largest LCD TV OEM.†And Li Bingjie is talking about Three mainland investment projects, one of which is also a color TV manufacturer in the mainland.
Li Bingjie said that currently there is a lot of bubble in the LED industry in mainland China because of the low LED output capacity that can be absorbed by lighting, mainly LED TV. However, this year global sales of LED TVs are only around 80 million units. The required LED chip production capacity can only be met with 300-350 MOCVD equipment (LED chip production equipment). This year, more than 400 MOCVD units have been put into production worldwide. In the next year, more than 500 units will be added. "So if Jingdian invests in the mainland, it must find the downstream customers before it can start implementing the expansion plan."
Despite careful production expansion, Li Bingjie still felt a lack of manpower. Because, with the current crystal power, it can only meet the needs of Changzhou and Xiamen joint ventures. As a result, Crystal Power Co., Ltd., a joint venture company established in Shandong Province led by the parent company of Crystal Electronics last year, was unable to send personnel reinforcements.
Based on this, Li Bingjie, a veteran of LED industry circles, is also a little upset about the rising LED heat in the mainland. Li Bingjie pointed out that the mainland LED upstream enterprises represented by Sanan Optoelectronics tend to tend to the vertical development of the industry, and the fronts are drawing very long, from LED epitaxial wafers to LED packages to LED applications. “It is difficult to have industrial partners for this kind of operation. All of them are competitors, and it is impossible to have sufficient LED professionals to expand production."
According to Li Bingjie, according to the investment plan of Jingdi Continental, after the three joint venture projects are formally put into operation, they only need to be mature in the LED lighting market. By then, Jingdian will implement a capital increase plan of NT$15 billion, and will also introduce mainland lighting manufacturers as shareholders.
According to reports, this year's Jingdian revenue was NT$19.5 billion, of which NT$4 billion came from the mainland market and 30% came from LED TV backlighting. Calculated on the basis of revenue, Jingdian, together with the revenue of its shareholder LED packaging giant Yiguang (2393. TW), is already the sum of income of other Taiwanese LED companies.
"The timing of the mainland LED chip companies entering the TV backlight supply chain is a bit late." Senior Engineer LEDCEO Zhang Xiaofei said. Gong Weibin, general manager of Ruifeng Optoelectronics, also admitted that Taiwan’s LED giants have tied up large mainland customers in a joint venture model, allowing the mainland’s local LED upstream manufacturers to become the second or third supplier of mainland TV manufacturers.
“The basic strategy for Jingdian to enter the mainland market is to find a partner that can release production capacity and to include it as a shareholder of the joint venture company to form a win-win alliance of interests.†A few days ago, Jing Bing Chairman Li Bingjie once again worked hard from Taiwan rushed to Shenzhen to participate in the senior engineer LED engineer conference, one of which is to hope to find more LED professionals and cooperate with Jingde’s mainland expansion blueprint.
On April 8, Jingdian, Guangbao and a mainland power plant started investing 600 million U.S. dollars in Jingzhou Optoelectronics in Changzhou. On October 8th, Jingdian reached an agreement with Evergrande and Great Wall Development to jointly invest USD 160 million in a joint venture company in Xiamen.
“Next, there will be a joint venture company, which is currently in negotiations. Jingdian plans to invest NT$30 billion (approximately RMB 6.7 billion) in mainland China in the next five years, and NT$15 billion in the first three years of the first three years. "Li Bingjie disclosed that one of the Jingpin Optoelectronics shareholders is a mainland color TV manufacturer. Since the cooperation still needs the approval of the relevant government departments of the mainland, it is estimated that all the processes will be completed soon. The establishment of a joint venture company with Great Wall Development is also aimed at TPV Technology, a subsidiary of Great Wall Development’s parent company China Electronics and Information Industry Group (CEC). “TPV Technology is already the world’s largest LCD TV OEM.†And Li Bingjie is talking about Three mainland investment projects, one of which is also a color TV manufacturer in the mainland.
Li Bingjie said that currently there is a lot of bubble in the LED industry in mainland China because of the low LED output capacity that can be absorbed by lighting, mainly LED TV. However, this year global sales of LED TVs are only around 80 million units. The required LED chip production capacity can only be met with 300-350 MOCVD equipment (LED chip production equipment). This year, more than 400 MOCVD units have been put into production worldwide. In the next year, more than 500 units will be added. "So if Jingdian invests in the mainland, it must find the downstream customers before it can start implementing the expansion plan."
Despite careful production expansion, Li Bingjie still felt a lack of manpower. Because, with the current crystal power, it can only meet the needs of Changzhou and Xiamen joint ventures. As a result, Crystal Power Co., Ltd., a joint venture company established in Shandong Province led by the parent company of Crystal Electronics last year, was unable to send personnel reinforcements.
Based on this, Li Bingjie, a veteran of LED industry circles, is also a little upset about the rising LED heat in the mainland. Li Bingjie pointed out that the mainland LED upstream enterprises represented by Sanan Optoelectronics tend to tend to the vertical development of the industry, and the fronts are drawing very long, from LED epitaxial wafers to LED packages to LED applications. “It is difficult to have industrial partners for this kind of operation. All of them are competitors, and it is impossible to have sufficient LED professionals to expand production."
According to Li Bingjie, according to the investment plan of Jingdi Continental, after the three joint venture projects are formally put into operation, they only need to be mature in the LED lighting market. By then, Jingdian will implement a capital increase plan of NT$15 billion, and will also introduce mainland lighting manufacturers as shareholders.
According to reports, this year's Jingdian revenue was NT$19.5 billion, of which NT$4 billion came from the mainland market and 30% came from LED TV backlighting. Calculated on the basis of revenue, Jingdian, together with the revenue of its shareholder LED packaging giant Yiguang (2393. TW), is already the sum of income of other Taiwanese LED companies.
"The timing of the mainland LED chip companies entering the TV backlight supply chain is a bit late." Senior Engineer LEDCEO Zhang Xiaofei said. Gong Weibin, general manager of Ruifeng Optoelectronics, also admitted that Taiwan’s LED giants have tied up large mainland customers in a joint venture model, allowing the mainland’s local LED upstream manufacturers to become the second or third supplier of mainland TV manufacturers.
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