LED giant to accelerate the layout of China's domestic enterprises to know how much

In July 4, 2009, announced in China within two years of additional 400 million yuan investment in Foshan new building two building, and further increase the green lighting products in Foshan OSRAM plant construction as one of the world's largest production base of OSRAM in its factory in Foshan for the two new building was inaugurated, the total investment is expected to reach a new plant this is 400 million yuan, OSRAM plans to make its efficient lighting products in China sales increased by 80% in 10 years, which shows great interest in OSRAM China market and seize China market determination. In addition, OSRAM has also become a global partner of Shanghai lighting system in World Expo.

In 2007, CREE completed the acquisition of Hua Gang, this acquisition not only allows Cree to have from the wafer, chip to package a complete industrial chain, but also provides a low cost manufacturing platform for Cree, expanded Cree's influence in china. In the face of the country's largest business opportunities - Ten City million light semiconductor lighting demonstration project, Cree has become the biggest beneficiary, it is reported that grab the 600 thousand street lights LED supply orders, business opportunities to see $240 million.

PHILPS lighting in recent Chinese also moves frequently, with Dongguan KingSun cooperation has attracted much attention, no matter how specific circumstances, which shows the importance of PHILPS Chinese market and seize Chinese market determination. In addition, the Greater China region, PHILPS is also working with IBM, by IBM for the implementation of the "business innovation and risk management" project, the project will help PHILPS to Chinese existing channels to redistribute the market, explore innovative business models to seize the market opportunity.

Why the international LED giants have increased investment in China?

Cheap manufacturing plant

Asian countries are the preferred production base and source of profit for multinational companies, in the LED industry is no exception. The relatively low cost of production and the abundance of human / intellectual resources have attracted many LED manufacturers in Asia, especially in China and Southeast Asia to expand production bases, research and development centers and sales networks. This is also a lot of LED industry related to the earnings of the giants appear on the rise in sales, but the reasons for the decline in production management costs.

Broad market space

The global economic crisis caused by a heavy blow to the foreign market, in order to respond to changes in the international situation, the Chinese government introduced in 2010 to 4 trillion yuan in the policy of stimulating domestic demand, to carry out large-scale infrastructure construction, which accounted for a share of lighting is very important, this is caused by the international LED giants interest. In particular, the weakness of the domestic chip links, but also to provide an opportunity for the entry of these manufacturers.

The international giant menacing, and brought far-reaching influence to the LED enterprises in china. Cooperation with LED large enterprises, on the one hand due to the introduction of technology, so that it increases the influence and competitiveness in the industry. On the other hand, LED will be the core patent giant purse granted, FSL and OSRAM on LED business development contradiction is remarkable. So companies can increase the influence of each other through the brand, but want to have a breakthrough in the field of technology, can only rely on their own strength. For many domestic companies do not cooperate with the large enterprises, the entry of international giants is undoubtedly increased the difficulty of market competition. In particular, if we have the advantage of only the price, then it is very difficult to grab the classic orders.