LCD TV giant LCD four joint venture ambitions: Shenzhen intends to catch up with Beijing

Four color TV giant joint venture behind: $2 billion 200 million "LCD VC" by the who pays the bill

Government pay, business management model spawned Shenzhen Julong photoelectric company

On the eve of the Spring Festival in 2006, four color TV industry giant SKYWORTH, TCL, Konka, Changhong and a company called ultra technology investment company (hereinafter referred to as deep company) enterprises gathered in Shenzhen, a joint venture of Julong photoelectric company.

The newly established company registered capital of only 10 million yuan. But this company is the Shenzhen municipal government on science and Technology City, the "grand narrative" of an important bargaining chip, overtaking Beijing, Shanghai harbors ambitions.

Upstream and downstream

January 22nd, five companies signed a joint venture agreement, each invested 2 million yuan, respectively, accounting for 20% stake in the establishment of Julong photoelectric company.

The reporter learned that, poly Dragon Optical investment intentions is actually more advanced sixth generation LCD panel production line, the total investment will reach $2 billion 200 million.

Over the company told reporters, Julong photoelectric company's current equity ratio is only temporary, such as confirmation of technical cooperation, specific to determine the final equity ratio, the scale of investment and construction progress.

In fact, flat-panel TV industry upstream mainly refers to the LCD panel and LCD module, the former investment amount of 1 billion -40 billion dollars, the current domestic production of two BOE and SVA only NEC fifth generation line; the latter investment in the $50 million to $200 million, the recent LCD module factory CPT in Xiamen has just invested $200 million to build. In Taiwan, the AU Optronics also have the investment in the Yangtze River Delta region.

Shenzhen company deputy general manager and company deputy general manager Lou Chao said that the previous rounds of experts and TV companies in private exchanges, most of them tend to directly on a monthly 90 thousand sixth generation LCD glass substrate production line, and then consider the module.

One of the biggest difficulties facing Julong photoelectric, is looking for technical partners.

Lou super admitted that the construction of sixth generation TFT-LCD production line before rely on independent research and development to build has been impossible, not only time, but also a lot of key technology hard to master, the only way is to find an enterprise with core technology cooperation.

A year ago, the Shenzhen municipal government is in the local high-end flat panel display industry development plan, therefore, over the company executives have repeatedly went to Japan, South Korea, Taiwan and other places to visit, and secretly looking for technical cooperation, but there has been no clear results.

Lou Chao said, Julong photoelectric looking for partners to work there will be some specific actions, including those relating to technical contact, but the panel manufacturing technology mainly lies in Japan, South Korea and Taiwan and other countries and regions of the enterprises, and on China's blockade, looking for technical cooperation partners is very difficult, for this company the board of directors held a meeting to discuss countermeasures.

Government ambition

2 billion 200 million dollars from where it is clearly a matter of considerable consideration. Although the big four is the industry heavyweights, but now a few annual average profit of about 100 million yuan.

The reporter learned that, in the middle of the Shenzhen municipal government will play an important role in the construction of LCD related industrial chain will be driven by an important pole of economic development in Shenzhen, this will be an important weight in Shenzhen all-round competition with Beijing, Shanghai.

Previously, color TV enterprises in 2004 has been trying to set up a joint venture company, but eventually die.

Appliance industry analyst at Orient Securities Chen Gang told reporters: "China TV industry excessive competition caused each other deeply distrust, and lack of funding sources, making the industry association coordination and competition cooperation is not likely to be successful."

This needs to be more discourse right financial strength and the participation of the government, it is understood that led to TCL, SKYWORTH, Konka, Changhong together, it is over the company.

A company over the company publicity page provided to reporters show that ultra technology was founded in November 7, 2001, registered capital of 100 million yuan, belonging to the Shenzhen city investment management company, is mainly responsible for Shenzhen semiconductor and related industries, business and investment, in order to achieve the overall strategic layout of the integrated circuit industry government planning, Shenzhen city the formation of agglomeration effects play a role in IC industry.

Obviously, the company actually represents the "deep pockets of Shenzhen municipal government in the match on TV companies, but the real leading Party sixth generation LCD production line is to invest is the Shenzhen municipal government, the relevant departments of Shenzhen municipal government has put the project named" dragon project".

According to informed sources, the Shenzhen municipal government for the "dragon", especially the rich experience of the former Shenzhen SEG group general manager chairman of honest to super company, Julong photoelectric company, the honest concurrently chairman of the company, in charge of Julong photoelectric work, general manager and deputy general manager. By the SKYWORTH group CEO Zhang Xuebin and super company deputy general manager Lou Chao served as.

In fact, the leading Party Chinese existing two LCD production line is the local government, although the BOE forecast losses in 2005 will be more than 1 billion 600 million yuan, but the Beijing municipal government last year or LED 7 banks to 6 billion 100 million yuan BOE joint loan, while the Shanghai municipal government will also lead the investment of $4 billion for the construction of SVA seventh generation LCD production line the.

Chen Gang said that although the BOE last year, a loss of 1 billion 600 million yuan, but the Beijing municipal government to bring nearly $40 billion