LED industry integration tides surging

According to the recent LED industry summit, LED industry-wide integration of the industry chain is surging. Some companies that are looking to become bigger and stronger are looking to invest in mergers and acquisitions. Through rapid integration, they have improved capacity, quality, and cost control capabilities. “More than 15,000. Home lighting companies will be forced to embark on the path of mergers and acquisitions because of overcapacity and lack of more orders, according to a joint opinion published by 20 leading LED companies. Judging from the situation in the past year, when the LED industry is in turmoil, the players behind the competition and integration actions continue.

Among them, the most integrated is BDO Runda. In the second half of 2012, BDO Runda has successively raided a series of integrated actions such as NVC lighting and investment in Weimei Shengjing. Now DHL Runda has completed LED epitaxial wafer, chip to package and then application (lamps, displays) integrated industrial chain layout.

Some people in the industry pointed out that mergers and acquisitions may be easier to occupy the market. "The game of lighting channels is over." According to Wang Donglei, chairman of BDO Runda, the key to LED lighting industry integration is to have an end market. Only by occupying a certain market share through channels can companies be guaranteed, especially upstream chips and packages. Business survives in a cruel market. Therefore, through mergers and acquisitions or mergers, it is easier to dominate the market than new channels.

According to industry insiders, before the situation of overcapacity in the upper and middle reaches has not improved, companies with both upper-middle-stream advantages and downstream channel integration capabilities may be able to survive in the harsh market competition in the future. The future market competition will focus on LED terminal lighting applications, but more importantly, form the echo and cooperation of the middle and lower reaches of the industrial chain, and quickly push the cost-effective products in the upper and middle reaches to LED lighting companies and be used by end-market consumers. accept.