The influence of LGD and CREE on the packaging industry in China

August 26th, LGDisplay (hereinafter referred to as LGD) will be established in the United States and LED CREE joint venture in Nanjing, LED packaging company, in China's LED packaging industry caused a strong shock. It is reported that the cooperation between the two sides to focus on notebook computer, LCD TV backlight LED demand, and the future will enter the LED lighting market, cooperation between the two sides set up LED backlight module factory, hoping to simplify NB and TV backlight module production line, in order to reduce the production cost.

This article will analyze the impact of bilateral cooperation and events on the industry.

LGD let us profit?

LED is a kind of direct electrical energy into visible light emitting devices and radiation energy, has low working voltage, small power consumption, high luminous efficiency, light response time is very short, pure colors, firm structure, impact resistance, vibration resistance, stable and reliable performance, light weight, small volume, low cost and so on a series of characteristic. In the LED industry link, the upstream is the LED substrate wafer and substrate production, midstream industrialization for LED chip design and manufacturing production, downstream to LED packaging and testing.

It is reported that the general estimated LED notebook (NB) backlight module market penetration will reach 10% to 15%. Due to the follow-up of the world's NB brand new products launched by almost all of the use of LED as a backlight, is expected in 2 to 3 years after the LEDNB panel will replace the existing CCFL backlight panel. The rapid spread of LED in NB panel backlight applications, also attract a foot panel factory in LED industry, following Taiwan manufacturers AUO and CMO, third announced to enter the LED industry panel factory. As a result, LGD is expected to remove the patent problem, and get a full supply of LED, help LGD to develop a fast growing LED backlight panel.

The industry has also been questioned, why not cooperate with LED LGD enterprise LGInnotek. According to sources: "before the discussion of this plan, but because of the investment and profit pressure and stopped, and the Innotek module is not stable supply at present, LGD turned to Cree. "Using LED as the LCD backlight module will not only increase the battery life, but also help to produce thinner displays and encourage new ideas for product design. Since LGD is the world's top three panel makers, Cree is the world's leading LED epitaxial plant, the industry attracted the attention of the top two, but also on the domestic packaging plant bomb bomb.

Little impact on the domestic market

Cree joint venture with LGD packaging factory, even behind the back of the panel factory, the product is still ultimately more than technology, cost, quality, from this point of view, Taiwan LED packaging plant cost control is still winning. Taiwan panel factory, said, in the light, energy-saving requirements, LED backlight panel applications in the development of fast, LED is already an important key component, it is necessary to invest in technology and supply. In addition, LED in lighting, display boards and other applications are growing rapidly, is a very promising industry.

In another development, Taiwan manufacturers CMO, AUO were set up in the past two years, Qili photoelectric lextar electronics, enter the LED industry.

As for the impact of the Chinese market, insiders said that the joint strength of the two pairs of domestic packaging plant has not much impact, and the joint venture to supply a separate panel backlight source to survive a little difficult. The panel factory to vertical integration of concepts into the LED market is not on the LED, not to see a dragon logic, because the LED yield problems, because the brightness is different and have different applications, not only used in the panel backlight, the panel factory to set up factories, LED packaging factory product flexibility is independent the.

It is reported that the active layout LED backlight panel factory, the formation of a certain pressure on the independence of the LED plant, although there is no substantial erosion of LED packaging factory orders, but in terms of low-priced products to disturb the market price, the domestic packaging factory more or less pressure.

Survey data show that the application of LED backlight in small and medium size panel has almost completely replaced the traditional cold cathode fluorescent lamp, while the LED backlight module in large-size panel shipments will reach 150 million in 2012.

Source: private economy news