Dragon mysterious investors appeared to change the pattern of the domestic LCD industry

In late July 2005, Jiangsu Kunshan Qianjin Road, the roar of a construction machine in a nearly 260 thousand square meters of the site has not stopped. A block of buildings are rising. Standing on the site sign clearly stated: Kunshan Longteng photoelectric (phase I) project (hereinafter referred to as "Longteng photoelectric"). According to local residents, so noisy days in a few months ago began.

From a pedestrian indifference to the project, we can see that the local people do not understand the significance of it. In fact, as early as a few months ago, decided to start from, every time the progress of the project will affect other domestic two large LCD manufacturing enterprises -- the BOE and SVA nerve. They have been keeping an eye on the matter. This is the third generation of the mainland in Kunshan to build the fifth generation LCD production line, but also the mainland's third large LCD project.

Although the Kunshan municipal government to keep silent about Ivo, but hidden behind the mystery of the project investment, and vigorously carry out the "recruiting" is, or can not help the industry talked about.

The mysterious treasure

LCD industry is worthy of the pit". In the BOE and SVA frequently when facing huge financial pressure, the domestic LCD gambling clubs and new members.

It is reported that the end of 2005 is expected to put into operation the first phase of the project will be as high as $600 million (equivalent to RMB 4 billion 920 million yuan), the total investment of the project as much as $6 billion (equivalent to 49 billion 200 million yuan). Such a generous investment, the investors behind the dragon who?

With the gradual completion of the new plant, investors began to clear the identity of the mysterious.

To understand at the site, Kunshan City Economic and Technological Development Zone Asset Management Co. Ltd is the dragon project construction contractor, so from the beginning, Kunshan economic development zone shows that the identity of its own shareholders. However, to burn the capital game, only the government can not achieve capital injection. Previously, Taiwan has long been rumoured that fifth large consortia -- Baocheng group is the main sources of funding for the project.

As the world's largest shoe-making enterprises Baocheng group from 1999 to enter the electronic manufacturing services (EMS) market, by virtue of its strong financial strength and excellent downstream integration capabilities, highlighted the growing influence in the electronics industry. The Group CEO Cai Qirui has said publicly that the EMS model is the first strategy Baocheng group, enhance the production capacity, the economic scale, and then gradually to the upstream vertical integration.

In the field of liquid crystal in Baoji Chengdu also reflects the strategy of science and technology in LCD production for many years in Guangdong Dongguan Yu Yuan Industrial Zone in Jiangsu Wei, Kunshan new Yuan Sheng Electronics is mainly responsible for the LCD module (LCM), and marketing related module components. Because no Baocheng LCD production line in the mainland, the future Yuan Sheng to dragon purchasing LCD panel is completely reasonable. According to the idea of integration of Baocheng gradually to the upstream and downstream industry chain, Baocheng can get through it in the mainland lcd. Based on this, the industry believes that Baocheng investment Dragon Technology logical.

Taiwan Baocheng as a listed company, it is any words and deeds for mainland investment will give full consideration to the current policy of the Taiwan authorities, not to mention Taiwan banned from investing in the mainland LCD factory. So, in the face of speculation in the industry, we have repeatedly said that the provisions of Taiwan Baocheng compliance authorities, no investment ivo.

In this regard, an anonymous employee told "IT" Baocheng Time: "they have a habit, generally have 95% things in their chances of winning will be announced." He also confirmed it as the "main investor Baocheng dragon project" and the organizer. "This project has been considered for a long time and prepared for 2 years."

All-round competition

In Ivo, the objective has changed the domestic LCD industry pattern: from the two strong opposition to a situation of tripartite confrontation.

For the BOE and SVA, Ivo after production carve up the market share will be made before the two companies worried. At the same time, IT Analysys International analyst Li Meihong also believe SVA life more difficult than the boe. "SVA and Ivo in the Yangtze River Delta region, two enterprise customer resources will intersect. Therefore, the latter is likely to take up considerable orders." Li said.

It is understood that the current SVA customers, located in the Yangtze River Delta area of Taiwan OEM LCD manufacturers accounted for a large proportion of their orders, largely supporting the expansion of production capacity of sva. According to SVA assistant president Tao Jun said, SVA plans in the first half of next year expansion. However, the background of the dragon's Taiwan funded enterprises can be more successful for its orders to Taiwan enterprises. "If there is to grab a single, expansion plan inevitably blocked up. Competition is inevitable, but we can also cooperate in the competition." Tao Jun said, now the two sides have begun to discuss cooperation."

Ivo eventually chose Kunshan, rather than the SVA settled Shanghai, for the cooperation of the two companies provide convenience -- in favor of more upstream enterprises choose to drive the whole East China, East China and the liquid crystal related material industry, chemical industry and chip industry development, and gradually improve the surrounding facilities, promote the development of the LCD panel enterprise.

SVA and during the interview, this reporter learned, SVA is