Enter the LED LED finalized AUO industry will move towards vertical integration?

The leading foot LED panel factory plan AUO spread in the industry before the AUO finally raise a Babel of criticism of, the location decision of LED production line will be settled in Hsinchu Park, announced in 2012 will be fully operational LED notebook computer in AUO (NB) panel, it is important to layout AUO further vertical integration, however, take on the traditional the downstream division of the LED industry, rich dad will bring large presence more vertical chain effect, and then squeeze in the past to each his own survival mode?

Taiwan factory LED for several years has been ranked the world's output of first, but for a long time, Taiwan LED plant maintained in the mountains upstream business model, specializing in epitaxial production or grain brightness upgrade, the downstream to the packaging and product application, compared with Japan Nichia factory (Nichia), Germany (OSRAM factory OSRAM or CREE) and other international giants, from grain production to finished output single handedly, scale LED plants clearly to "professional division of small and beautiful".

When the LED mobile phone market gradually saturated, entered the small Suibu growth, LED will become the 2008 panel backlight bright star product, AUO and CMO panel factory across the full LED industry, in addition to promising LEDNB market trends, huge business opportunities to seize the TV days after the LED backlight has leap growth momentum, relative to the the panel factory tens of billion of large investment, LED equipment investment threshold is low, the LED line will be built to ensure supply stability.

Panel factory army waved LED industry, the original single large turning into competition, both the upstream and downstream grain packaging was a niche position of the past be implicated in trouble, LED will have to consider in the factory actively expansion over, how to improve the high order application of new products, and in the group effect under the impact of fear will accelerate industry mergers.

But why have not the vertical integration of upstream and downstream of LED occur? From the LED industry integration and development, when the LED grain crystal power plant continuous merger of the League of nations, and even the yuan Shen Yong, and has become one of the world's largest supplier of 4 yuan LED and 4 largest supplier of LED nitride crystal electric level, still adhere to the expansion of the route for the downstream application side never involvement; and as the crystal TV shareholders, Lite billion light department, and take appropriate crystal electric distance beauty. The packaging plant maintains a stable upstream grain supply relationship, and the grain factory can expand the customer source of the package application side, and the subtle relationship of "brothers mountaineering and their respective efforts" will keep each other more flexible.

In LED epitaxy process production out of the wavelength belong to normal distribution, the grain is suitable for high order LED backlight is only about 3~4, impact on the yield rate of the product specifications and other factors, if the panel factory completely inhouse homemade LED, the size of equipment must be greater than the expected output potential targets, and the low order brightness of the LED will result in the increase of cost or idle capacity and other risks.

Independent panel factory arranged LED production capacity risk is not small, but the group scale economic pressure, will make the LED alone factory faces more severe crisis of survival, it is difficult to enter the high order application products, but the LED industry is not only the market supply and demand test of war, more intelligent for technical innovation and patent breakthrough. How to find the corresponding way, good use of energy saving and environmental protection trend, will be a key test of business judgment.

Source: DIGITIMES