Semiconductor lighting M & a frequent large constant strong "to be tested

With Sumitomo recently announced the completion of the Cambridge Chemical Co. Ltd (CDT) acquisitions, mergers and acquisitions once again into the line of sight of people, and become a hot topic in the semiconductor lighting industry concern. In fact, since the second half of 2006 to mergers and acquisitions in the frequent occurrence of both arsenic and wafer, Yuan Lian Yong of the merger, or CREE to China just acquisition, each time the mergers and acquisitions, are undoubtedly the industry with powerful incident. These mergers and acquisitions, or horizontal or vertical, or powerful combination or hold together the enemy, plus the associated enterprises to join, presents a new round of mergers and acquisitions industry.

Europe and the United States giant vertical integration of the industry chain, highlighting the competitive advantage

1 traditional lighting giant intervention, Level lighting industry leadership

With the LED technology development prospects has been valued increasingly, the traditional lighting giants have also involved, such as the world's five largest manufacturer of LED in addition to Cree and arias (Nichia), Lumileds, OSRAM, TOYOTA (OSRAM OS) photo synthesis (Toyoda Gosei), belonging to PHILPS (Philips), OSRAM (Osram) and TOYOTA (Toyota). These large groups are not satisfied with the status quo, they continue to explore emerging companies into the control, in order to improve the industry structure, long-term occupy the commanding heights of the lighting market. At this point, PHILPS's move is undoubtedly the most.

December 2006 after the acquisition of Agilent (Agilent) holds 47% of the shares of the company Lumileds, PHILPS to buy shares of the company's holdings of 8 million euros of Lumileds, to achieve a full control of Lumileds. Only after half a year, and in June 2007 PHILPS $71 million Canadian white LED producer TIR Systems company incorporated under the flag of the end of August to about $791 million of American LED lighting system integrators COLOR KINETICS (CK) the company's acquisition. Lumileds manufacturing LED chip and power type package, TIR with LexEL (Lexel is the main component, white LED light source comprises a radiating, optical design, feedback and drive technology, etc.) and CK in LED lighting color control field equipment and systems at the forefront of the world. This series of acquisitions will be in the middle and lower reaches of the lighting industry chain has been carried out, the abundance of PHILPS's patent portfolio, but also to increase the brand effect, PHILPS won a strong competitive advantage.

PHILPS estimates the LED market will grow at an average annual rate of more than 20%, and is expected to reach $30 billion to $20 billion in 2025. In the short term, these acquisitions are PHILPS in this expectation, the consolidation of integrated semiconductor lighting product line, the completion of the global LED lighting market layout, to ensure that the strategic position in the field of high-power LED. In the long run, PHILPS's move is not only to consolidate its foundation in the LED lighting industry, but also how it's a comprehensive strategic deployment of the entire lighting industry for a long time to occupy the advantages of technology, resources and so on.

And PHILPS, OSRAM is the world's three largest lighting industry, General Electric also participated in the LED industry. GE has Lumination can produce small, medium and large power LED products, but the power of the product is still relatively immature. If you want to share the long-term market share of lighting, GE had to grow LED product portfolio. After Philips announced the completion of the acquisition of CK, GE will acquire Cree in order to strengthen the competition with Philips rumors surfaced. Although there is no evidence yet, but we have reason to believe that, in the face of the other two giants of positive action, GE will also move.

2 Cree acquisition of China, vertical integration of industrial chain

April 2, 2007, Cree announced the completion of the acquisition of China just photoelectric Parts Co., Ltd., China just photoelectric (Group) Co., Ltd. has about 9% stake in Cree, becoming the single largest shareholder of Cree. The strategic merger involves China's three major business groups, including LED packaging division, module division, as well as the display device division. With this acquisition, Cree has from the wafer, chip to package a complete industrial chain, change the past only single chip marketing mode. The acquisition provides a low-cost manufacturing platform for Cree, help Cree in LED chip technology, intellectual property and marketing investment, is a strategic step Cree into the semiconductor lighting market; while China is just using the global features of the semiconductor lighting industry, through mergers and acquisitions or cooperation of overseas advanced technology into the country can, and international companies, the basic industry competition in the same level of technology.

The horizontal integration of the industry in Taiwan, China, to seek competitive advantage

1 yuan, and even Yong Jingyuan as merger, establish dominance

September 28, 2006 EPISTAR (Taiwan region of China's first large LED chip maker), Yuanshen photoelectric (second Taiwan area of China LED chip business) and even Yong photoelectric announced the merger, the company continues to crystal electric. The new crystal will be the advantage of the group, the expansion of production capacity, to become the world's largest red LED plant, as well as the fourth largest Blu ray LED plant. The biggest significance of this merger is the first time in China's Taiwan region, an international LED upstream epitaxial / chip companies, the future of strategic alliances with the international manufacturers and cross licensing will be more favorable position. To observe the situation of LED industry, the merger as the main object of LED chip suppliers in Taiwan area at present in our country, because of overlapping customers high and product characteristics are similar, the combined short-term advantage is the LED price stability, while the long-term advantage is the bargaining space source and price and the stability of the downstream LED packaging factory original material.

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