Look at the long-term prospects of LED investment from PHILPS

Following the mobile phone application, vehicle and LCD backlight is the current stage of development of LED points, the long term application of lighting is LED long, LED has been selected as one of the 100 great inventions of mankind in twentieth Century.

According to Taiwan media reports, Holland electronics manufacturer PHILPS (Philips Electronics) to spend $950 million in August 15th, has belonged to Agilent (Agilent Technologies) holds shares of company Lumileds, Lumileds high brightness LED PHILPS and Agilent in November 1999 the establishment of the joint venture, HP (HP) in the first half of 1999, the separation, measurement instruments and semiconductor industry go out to become agilent. The PHILPS Agilent originally held 47% shares of Lumileds holdings total reached 96.5%.

For PHILPS, Lumileds to increase the proportion of shareholding, higher for lighting business commitments, Lumileds is the 1 company specializes in high brightness LED (including red, blue, green and white LED) company, LED, mobile phone and TV production vehicle with LED.

In the career orientation, the original Lumileds is responsible for LED chip and chip package, PHILPS is doing after the module and system integration, the relationship between the upstream and downstream vertical integration system, in the downstream market influence, PHILPS is the world's leading manufacturers in the global lighting market.

Get full control of Lumileds help PHILPS lighting business progress

Lumileds financial health is 1, high growth and low interest rates are not the company, accounting for 2004 annual turnover of $280 million, an annual growth rate of 43%, net profit of $62 million, an increase of more than 2 times, the net operating margin of 22%, net interest rate expectations in the future 20 ~ 25%. The data in each department and each PHILPS ventures, is a manifestation of all the. In 2004 the global LED lamp / monitor overall sales of $4 billion 700 million, the Lumileds is about sixth ~ seven position.

PHILPS Lumileds most of the shares (the remaining shares staff), on behalf of the meaning of PHILPS semiconductor lighting industry more resources, more lively decision for Lumileds days after the strategy and business will be mobile. Of course, Lumileds's products are higher than the general interest in the lighting industry, for the cause of PHILPS lighting can also make a profit contribution.

Philips cash $950 million appeal

In 1999 HP reorganization, photoelectric business group is to Agilent, but in recent years because of the Agilent department and business is still too complicated, so the business strategy tends to be more focused, so the disposal of some non Agilent best business, as is associated with the semiconductor fab and the cause of LED. The Agilent, at least back to the old ways to lock "electronic measurement instruments' main business, because PHILPS will obtain cash by Agilent holdings, and Agilent in recent years profit performance just passable, occasional losses, the $950 million capital inflows to Agilent should be beneficial.

For PHILPS, the company is currently the world's 3 largest lighting manufacturers (PHILPS, Osram, GE respectively, 3), and technology roadmap for white light illumination and LED backlight is PHILPS planned development focus, because PHILPS lighting lamp accounted for more than 50% of the revenue proportion, so for the next generation of lighting technology can't let down. Lumileds has a high brightness LED technology and commercialization capabilities, nearly 200 patents, nearly 100% stake in PHILPS under control, will help PHILPS in the future direction of development in the future.

Strategic thinking on the cause of investment in PHILPS and the United States IT manufacturers, as long as the added value of the overall enterprise business is reduced or future potential is relatively unattractive, quickly take realizable approach, but it will not throw money to buy to may become the mainstream technology company. For example, IBM will be sold to Lenovo PC business, the main reason is that the added value of IBM has been low, such as PHILPS invested $1 billion 500 million to buy LG LCD half stake, the establishment of LG PHILPS (LG.Philips LCD). Therefore, PHILPS's overweight investment on Lumileds means that PHILPS's semiconductor lighting and LCD Backlight Market potential.

High brightness LED market growth rate of over 2

2004 Global LED market is about $4 billion 700 million, is expected to grow to $6 billion 700 million by the year of 2008, the average annual growth rate of about 13%, of which the Lumileds high brightness LED market, the average annual growth rate of more than 20%.

High brightness LED is based on the current market, mobile phone applications, mobile phone keys and LCD screens are required to use the LED as a backlight source, in addition, a mobile phone mobile phone market accounted for the overall ratio increased year by year, and the ratio of mobile phone equipped with photographic flash flash is also gradually improve, need to use white LED. Overall, with the mobile phone related LED needs, accounting for 35% of the overall LED market, second only to all kinds of LED lights (including PC and many other applications) of the top second applications.

However, although the mobile phone market demand, but because of the high rate of mobile phone has been in the global popularity, the average annual growth rate of shipments has been difficult to more than 15%, with the current PC is similar, so long-term growth opportunities, the focus is on lighting (including home lighting and decorative lighting), LCD TV (LCD TV) backlight and inside and outside of the car lamp.

Lighting market is a long-term development direction

Many people are optimistic about the future of LED in the lighting market opportunities, as predicted the region of Taiwan, Japan and other relevant units of manufacturers, if LED can replace general lighting, can build several nuclear power plants, but because the price is far lower than the general lighting lamp LED lamp, it has been estimated that