Due to the rapid popularity of LED TVs, the tide of LED investment has regained popularity at the beginning of the year. The difference is that the theme of the new round of LED investment boom has changed to the fact that Taiwan’s LED industry has accelerated its transfer to the mainland.
Recently, the LED chip leader Taiwan Epistar board of directors formally approved the investment of 70 million US dollars and China Electronic Information Industry Group (CEC) to set up a joint venture in Xiamen, mainly engaged in LED backlight, LED lighting, a total of two major application products. Among them, Jingyuan Optoelectronics holds 40% of the shares of the joint venture company, CEC holds about 44% of the shares, and the subsidiaries of the CEC Group are the largest shareholders. A week ago, Taiwan’s LED chip maker New Century Optoelectronics also stated that it will raise NT$1.064 billion in cash by increasing capital and issuing convertible corporate bonds, and investing US$7.5 million in Kunshan factory to build China’s largest LED lighting production. base.

Gaogong LED Industry Research Institute data show that last year, Taiwan's LED production value was 2.168 billion US dollars, accounting for 25% of the world, as of the end of 2009, Taiwan's LED industry has reached 50% of the transfer to the mainland, is expected this year, Taiwan's LED output value will reach 2.7 billion US dollars By the end of this year, the transfer of Taiwan LED industry to the mainland will reach 60% to 70%.

Speed ​​up the mainland enclosure

“The largest shareholder of Jingyuan Optoelectronics and CEC’s joint venture in Xiamen should be TPV.” Any assistant to Xiamen LED Promotion Center stated yesterday to the “First Financial Daily” that the cooperation has just been finalized and the details are not yet disclosed.

According to the information released by Epistar, the joint venture company in Xiamen will include LED light source modules and LED lighting product partners in addition to Epistar and CEC. Among them, Epistar is mainly responsible for the production of LED epitaxial wafers and LED chips, and LED packaging will be subcontracted.

Jingyuan Optoelectronics stated that the Xiamen plant will become an important production base for the company's LED backlight and LED lighting market in mainland China. The products it produces will also focus on the joint ventures of the CEC Group. It is reported that the production volume of LCD TVs of the TPV Technology Group of CEC Group has increased to 9.5 million units in 2009. In 2010, TPV LCD TV shipments will hit the target of 14 million to 15 million units, which has become the world’s undisputed maximum. LCD TV OEM factory.

In fact, in addition to the Xiamen joint venture company, Jingyuan Optoelectronics' current layout in mainland China includes Jingpin Optoelectronics in Changzhou, Jingyu Optoelectronics in Xiamen (100% in Jingyuan Optoelectronics) and Jinke Electronics in Guangzhou. (Jinwon Optoelectronic holds 16.7%), basically building a very competitive industrial chain in the mainland market.

New Century Optoelectronics officially started construction in the Kunshan factory in late September. The Kunshan factory is owned by the Kunshan municipal government by 51% and New Century holds 49%. Zhong Kuangren, Chairman of New Century Optoelectronics, stated that about 50 MOCVD devices (LED chip production equipment) have been planned for the first phase of Kunshan Plant, which will be put into production in the third quarter of 2011 and will become the largest LED chip and lighting product production base in the mainland. one.

The main force of industrial upgrading

"The shift of Taiwan's LED industry to the mainland will become the main force for the upgrading of the mainland's LED industry." Zhang Xiaofei, CEO of Gaogong LED, pointed out that domestic LED listed companies are basically halfway to the LED industry, not only the current small-scale, but also the lack of core technology. Compared to the international LED giants, domestic LED companies still have too little R&D investment.

It is reported that last year the global LED chip giant Cree (CREE) revenue of 1 billion US dollars, if you invest 10% of R & D, there are also 100 million US dollars, while the domestic LED listed companies may earn more than 10 billion yuan in annual revenue.

Gaogong LED data shows that last year, the investment of LED companies in Taiwan was about 240 million U.S. dollars. As of August this year, the amount of Taiwanese companies investing in the mainland LED industry has risen to 1.17 billion U.S. dollars. Among them, nearly 1.1 billion U.S. dollars were invested in the manufacture of LED epitaxial wafers, and 7 of the top ten LED epitaxial wafer chips in Taiwan. Jingdian, Guanglei, Dingyuan, Fuyuan, Huashang, New Century Optoelectronics and Lunda were all Continental joint venture or wholly-owned construction.

“In order to attract the LED industry in Taiwan and develop the local LED industry, the local governments in mainland China are all building LED industrial parks vigorously. At present, at least more than 100 are formed.” Zhang Xiaofei pointed out that the shift of Taiwan’s LED industry also boosted the capital of mainland China to LED. Upstream investment follows the trend, "For example, Hunan Hua Lei, Shanghai Blu-ray and other LED epitaxial chip projects are financing."

It is reported that local government investment promotion, especially the MOCVD financial subsidy policy, is another reason for the LED industry investment boom. Because, each 8 million to 10 million yuan in financial subsidies, significantly reduced the LED chip companies equipment purchase costs.

“The huge mainland market, close to the market and customers, is the main reason why LED companies in Taiwan have moved to the mainland.” Gong Weibin, general manager of Ruifeng Optoelectronics, the leading manufacturer of LED backlight in mainland China, said that although the mainland LED TV share will reach 60% next year, this The fruits of growth, mainland LED manufacturers may only share a small part of them. Because compared to the size of LED packaging giants in Taiwan, the scale of mainland manufacturers is still too small, and product quality and cost-effectiveness do not dominate.

In mid-August, LED industry leader Taiwan Everlight (2393.TW) China's board of directors decided to invest RMB 1 million to establish Shenzhen Everlight Optoelectronics in Shenzhen. Ruifeng Photovoltaics may be only one-twentieth of the billion light.