The white LED CMO AUO industry reshuffle imminent

After two years of LED industry downturn, launched a wave of survival of the fittest in the playoffs, staged the closure of small factories to sell equipment, or with the industry consolidation drama, Taiwan LED industry gradually improved physique. But last year, industry situation reversed, with huge business opportunities in the application of LED lighting backlight, street lamps, lights, hot brake time LED of upstream and downstream firms have become the customer to stake in LED industry alliance, and launched a wave of big reshuffle, the future is not rich dad LED vendors may be nervous.

Since last year, LED began to be applied in size above panel backlight panel manufacturers to set off a wave of war card, white grain factory canyuan, Chi Mei investment Qili packaging, but also investment kaiding auo. Whether it is seven inch panels, NB panels and even TV panels, the amount of LED backlight panel is quite amazing, with a thirty-two inch LCD TV, for example, the amount of LED up to eight hundred to more than one thousand. For the panel plant, tying capacity, consolidation of supply is the primary purpose, and through vertical integration, but also help to reduce costs.

LED application of a wide range of Foxconn production information, consumer electronic products are almost used on LED, Innolux is the world's largest seven inch panel suppliers, the rapid growth in the market of small size panel, requires a lot of LED capacity. As for Pei Xin and Foxconn are responsible for the development and assembly design, cooperation cross LED street market.

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The amount of the purchase Foxconn LED last year is as high as four billion yuan, the future consumption will be more multiples of growth for the group is extremely important component procurement projects, and also let Foxconn decided to invest on their own LED industry.

Foxconn also believes that the market, the next step is likely to continue toward the upstream layout, grasp the key grain LED. While the industry has previously reported, Hon Hai will participate in the LED grain before Guolian photoelectric chairman Huang Guoxin led factory Liansheng optoelectronics capital case, but did not get the Hon Hai confirmed.

LED downstream requires close coordination, so the past package factory and epitaxial plant are often mutual investment strategy alliance, now in alliance has been extended to the lower reaches of the upper reaches of drama. Now is the main packaging partner Foxconn billion light and advanced Optek, Foxconn with white, one can imagine the future will be the main supplier of advanced Optek, packaging factory into other secondary or third suppliers.

For LED manufacturers, customers are not only customers and shareholders, close alliance to order more assurance, in the off-season will become the first to be cut single object, in the season because of the blessing of customer benefit, no strong rich dad, may be nervous.

Source: Business Times