The rapid development of LED industry, the upstream and downstream extension integration trend is obvious

As the intermediate connection between the upstream epitaxial chip and the downstream lighting and display applications, the package directly feels the pulling effect of the downstream lighting demand and is also a big beneficiary. In the period of rapid development of LED, it has become an obvious trend in the development of packaging industry to extend upstream and downstream industrial chains through mergers and acquisitions, restructuring and other means, and then quickly become bigger and stronger. In the next five years, the LED industry will be reshuffled. Whether it is a listed company, a state-owned enterprise or a private enterprise, it will face a very severe situation. Dr. Zhang Xiaofei believes that especially in the next three years, it will be the normal state of the LED industry that big fish eat small fish and fast fish eat slow fish, because the market space is so large, this is also the inevitable result of market laws. Unlisted companies may be basically eliminated or integrated. Since last year, there have been successively, Hongli Optoelectronics has completed the acquisition of the remaining equity of Fuda signal, Ruifeng Optoelectronics's acquisition of Lingtao Optoelectronics into the small and medium-sized backlight market, and Guoxing Optoelectronics's capital increase and reorganization of xurui Optoelectronics. According to incomplete statistics, there were more than ten mergers and acquisitions in the LED industry in 2013, including 11 involving listed companies and 8 involving packaging applications. In terms of industrial chain extension, most enterprises are mainly from the packaging field to downstream applications or further extension of channels. The trend of rapidly expanding upstream and downstream industrial chains through acquisition and other means is becoming more and more obvious. Hongli Optoelectronics 3117 with its own funds. 60 thousand yuan of Foda signal's remaining 38 shares, thus achieving 100 holding. The acquisition shows that Hongli Optoelectronics will increase investment in the future and expand the LED Automotive lighting industry. As the gross profit margin of LED automobile lighting is much higher than that of LED ordinary lighting, Hongli Optoelectronics hopes that LED automobile lighting can become the company's new profit growth point. Recently, Ruifeng Optoelectronics plans to invest 30 million yuan to acquire 15 shares of Lingtao Optoelectronics or formally enter the small and medium-sized LED backlight market. In terms of small and medium-sized backlight business, Ruifeng Optronics did not make great efforts to do it before, but now its own production expansion will be relatively slow. It will make layout by participating in enterprises with certain market share and considerable scale, it is a better choice for Ruifeng Optoelectronics. Gong Weibin, chairman of Ruifeng Optoelectronics, told reporters that Lingtao Optoelectronics has been operating in the small and medium-sized backlight market for year 56 years. Ruifeng Optoelectronics can use this platform to expand related businesses, which is very beneficial to both sides. The main reason why packaging enterprises extend upstream and downstream is that packaging, as a link between upstream and downstream, is greatly affected when the market is not good, and when the market is improving, it will be affected by insufficient chip supply, the downstream is constantly demanding a double squeeze to reduce costs. The person in charge of the packaging company once laughed and said that the packaging factory often suffers from the two ends, and simply packs the upper, middle and lower industrial chains, and does not have to look at whose face. Get through the upstream, middle and downstream industry chain, based on the original main business of packaging, at the same time, through the transformation of products and technologies, cross-industry chain layout, so as to find new business and profit growth points, it also makes packaging enterprises develop more continuously in the fierce competition in the future. Zhang Hongbiao also said that there will be fewer and fewer companies that simply package in the future. In addition to vertical integration and cross-border, there are more and more horizontal business extensions. Dongshan Precision, which used to lay out large-size backlights, has also begun to plan for the small and medium-sized LED backlight market this year. On April 1, Dongshan Precision announced that Hong Kong Dongshan Precision United Optoelectronics Co. , Ltd. , a wholly-owned subsidiary of the company, has completed the purchase of MuttoOptronicsGroupLimited100 equity and some intellectual property rights to the touch panel business. The acquisition of MOGL company is an important step for Dongshan Precision to expand the layout of small and medium-sized LED backlight business in the future. Wang Jianmin, general manager of Dongshan Precision LED division, said that the monthly production capacity of Dongshan Precision's small and medium-sized LED backlights is about 100KK, which will be expanded to 300-per month by the end of this year- About 400KK, it will exceed the capacity scale of jufei Optoelectronics. The small and medium-sized backlight faucet jufei Optoelectronics is considering increasing the market expansion of large-size backlight. Xing Qibin, chairman of jufei Optoelectronics, said that the company will increase the layout of large-size LED backlight business in 2014 and strive to enter the top three in the field of large-size backlight within three years.