LED Taiwan factory alliance issues increased, LED industry cooperation into a trend

LED TV drives the demand for backlights, and sets off the trend of integration of LED industry. Recently, Taiwan’s Leading Crystal Plant’s leading crystal power company participated in the Taigu private fund case. Research institute LEDinside believes that the vertical integration of LED industry and the formation of horizontal alliances will not only help stabilize gross profit margin. At the same time, it also increases production capacity and ensures stable supply to customers.

Jingdian announced that it will participate in the private placement of Taigu. It is estimated that the investment amount will be NT$722.4 million, accounting for 19.9% of the equity after the increase of Taigu. LEDinside said that the way the LED industry has been aligned in the past is the vertical cooperation of the above downstream manufacturers. The intention is to ensure The source of the source is to facilitate the smooth production of the downstream industry. However, the way of the integration of the company is that the upstream industry cooperates with each other horizontally, which not only sets off the first case in the industry, but also pays close attention to whether other companies follow up in the future.

Jingdian has said that after cooperating with Taigu Strategy, it can achieve resources sharing with its peers, reduce potential risks of substantial expansion, increase profitability and enhance shareholders' rights and interests. LEDinside analysis, since 2009, the LED industry fundraising action has been frequently used to expand production capacity. However, after the downstream manufacturers significantly expanded their production capacity, they have highlighted the risk of upstream material shortage. In order to consolidate the source of the material, the upstream and downstream integration of the LED industry has emerged. trend.

At present, the integration of LED upstream and downstream industries can be roughly divided into: Jingdian and Taigu; Guanggao and Seoul Semiconductor; Yuyuan and Datong Group; Guanglei, Advanced Power and Innolux; LG, Ruixuan and Yiguang; AUO , Ronda and Kaiding, Chi Mei and Keli are all LED upstream and downstream cooperation, or extended to the downstream application.

LEDinside pointed out that the alliance between Jingdian and Taigu, mutual benefit, on the one hand, the gross profit margin performance of Jingdian is expected to be better. On the other hand, Taigu also received orders to improve capacity utilization and technology.


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