Longda Su Feng Zheng: MiniLED will finally move towards technology integration service.

After Mini LED has been research and development in Taiwan for many years, the factories will be shipped in the second half of this year. Among them, Taiwan LED factory, Longda first announced that Mini LED products have started shipping in the third quarter. Su Fengzheng, chairman of the board of directors, believes that the permeability of Mini LED will be accelerated and greatly improved in the next year from next year. This will be another opportunity for business growth.

First wave shipment display monitor

Taiwan LED factory has experienced land factories in the lighting market in the past few years, and has been forced to withdraw from the lighting market or to the higher Mini LED market. After several years of research and development, the Mini LED of the factories has been shipped out in the second half of this year. Among them, the first wave shipment of Longda is aimed at 32 inch electric market display. As the gross profit margin of the product is obviously better than all the product lines, the gross profit margin will be increased next year, and the volume of future shipments is expected to become the main force for growth.

Su Fengzheng pointed out that for the Mini LED shipment target, the rapid increase of the market penetration rate in the future is predictable, and at a relatively high cost and selling price, Mini LED must start from the professional market at the top of the market in Pyramid, and then gradually expand to the commercial and domestic market. Therefore, the initial shipment volume and operation ratio will not be too high.

Permeability will rise next year.

Su Fengzheng revealed that most of the customers are still in the design stage this year, but the application will start to expand next year, and double digit penetration will be possible in the future. As long as 5% of the backlight of a monitor panel factory is replaced by Mini LED, it will be able to consume at least half of Longda's capacity.

Although the Mini LED products account for the initial stage of the shipment of Rand's products this year, the gross profit margin and profit performance will still be helpful if the gross margin is relatively good. Su Fengzheng also expects more manufacturers to use Mini LED next year, including IT, vehicle electricity, aviation, medical and other applications.

One stop service advantages

And whether the price competition of land companies in recent years will continue to Mini LED, Su Fengzheng believes that the Mini LED technology threshold is higher, and unlike lighting can lock simple sales of LED components. In the short term, at least, Longda still does not fear Lu's competition in the Mini LED market.

Su Fengzheng emphasized that Mini LED will eventually move towards technology integrated services. He said that Longda has the foundation of backlit customers, and from the point of view of system integration, it is not just selling components, but integrating the control system behind. Longda not only has these capabilities, but also provides one-stop service to customers, which will definitely be able to resist competition from land companies in the future.

Can import smart phone backlight

In the market focused mobile phone applications, Su Fengzheng said that the application of Mini LED in the backlight of mobile phones is currently different from the design of various manufacturers. In the 5.5 inch smart phone, the use of Mini LED from thousands of thousands to tens of thousands of different manufacturers will see the design of different manufacturers, and the cost is very different, so it is still in the initial stage of technology. Factories are pushing new designs, hoping to reduce the number of Mini LED, while the cost structure of Mini LED is expected to outperform OLED. It is expected that a few smart phones will start using Mini LED backlight this year.

Adjust production line order and build up physique

In the operation and adjustment of the company's physique, this year, in addition to pushing new products, Longda also carries out two important layout: first, replanning and sorting out its production line, improving production efficiency; secondly, aiming at the lamps and lanterns business with high revenue in the past, but unable to bring profits, and eliminating most of the orders without gross margin. The two adjustment is expected to have immediate results for next year's operation.

Su Fengzheng said that the new plant of Chuzhou, located in Anhui Province, moved in March this year. The factory plans to manufacture semiconductor products, chips and packages from the previous stage, and will do better supply chain management besides being the main manufacturing base.

He stressed that the plant's current production activities include backlight and lighting encapsulation, lamp bars, modules and rear end testing of grain. This year, the manufacturing and production of two bases scattered in Taiwan and Xiamen will be concentrated in one place, and personnel management efficiency will also be improved.

Optimizing supply chain will be effective next year

Another Longda will also do a better job of integrating the supply chain. Su Fengzheng pointed out that the new plant capacity in Chuzhou will be fully available in the early fourth quarter, while the Taiwan plant will be mainly based on 3D face recognition and Mini LED backlight display.

In addition, in order to effectively centrally supply the supply chain, Su Fengzheng said that he would invite the main materials factory like PCB to plant the factory in Chuzhou new factory, so as to save transportation, packaging and other related costs and time. To optimize supply chain, it is expected that the supplier will set up a factory in Chuzhou for nine months, and the supply chain concentration efficiency is expected to appear in the second half of next year. As for the overall production efficiency of the new Chuzhou plant, the integration benefits will gradually appear next year.

The proportion of lighting products is low.

In terms of the relatively low gross margin lighting products, Longda began to reduce the proportion of LED lighting fixtures from the fourth quarter of last year. In the first quarter of this year, the production of luminaire was concentrated. The proportion of lamps and lanterns in the third quarter was less than half of that in the second quarter, and the fourth quarter decreased again. The proportion of products has been very low.

Su Fengzheng said that in the cost structure of the lamps and lanterns, LED accounted for 10% of the cost of lighting fixtures from 30% to 10%. Other costs are the surrounding iron and plastic parts of the luminaire, while Longda is a semiconductor factory, not a hardware factory or a hardware company. Therefore, it is imperative to substantially reduce the proportion of lamps and lanterns, and after several quarters of adjustment in the third quarter. The gross profit margin is expected to climb. The single quarter profit is about the same as the second quarter, but it is better than the same period last year. In the future, the proportion of lighting will be reduced, and the proportion of other vehicle and new application products will increase.

There is room for vehicle products.

As for most LED factories who want to attack cars, Su Feng regularized that the car market is very special. It is not easy to squeeze into the supply chain of the car factory. Generally speaking, it is about three to five years to squeeze into the original supply chain of a large automobile, from product delivery to completion verification, and for this, Longda has invested more than three years. The proportion of products accounted for about 2% to 3% of shipments has gradually revealed the results of operation in the past few years, and there is still room for improvement in the future operation of the vehicle market.

For more LED related information, please click LED net or pay attention to WeChat public account (cnledw2013).