In-depth “gold rush” vertical integration of wind and lighting industry

With the restriction of traditional incandescent lighting and fluorescent lighting worldwide, the continuous promotion and deepening of semiconductor lighting policy inclines to increase LED lighting. The world is setting off an upsurge of unstoppable semiconductor lighting boom. Behind this wave of stamina, there are more and more companies rushing to “find gold”. They either extend the traditional lighting companies or transform their amateur companies. Or start new companies to develop new ones. We have seen that many large Chinese and foreign companies, with their strong brand awareness or funding background, have chanted "horizontal integration" flags.

In foreign countries, the vertical integration strategy of the Korean factory broke through the LED pie. According to reports, major manufacturers such as Samsung and LG of South Korea have competed to complete vertical integration of the supply chain through expansion and acquisition. They have been catching up in the light emitting diode (LED) market and have become LED-related supplies in Taiwan and Japan. Business can not be underestimated rivals. Samsung and Lucky have actively launched vertical integration of their LED business in the upper, middle and lower reaches of the market. In recent years, they have been more aggressively purchasing organometallic vapor phase epitaxy (MOCVD) machines, which have resulted in a significant increase in the status of the global LED market. Leap forward. After the advent of LED light sources, the ecology of the lighting industry in Korea was changed. In the past, the South Korean government had restricted large-scale enterprises from entering the lighting market to protect domestic SMEs. However, since LED lighting was attributed to the semiconductor industry, Dachang won the admission ticket. With the huge resources of the big manufacturers, LED technology can be rapidly innovated and there is an opportunity to enter the international arena.

In China, BYD's BYD Lighting is a typical example of companies that have taken the lead in the LED lighting industry with a "vertical integration" strategy. In 2003, it began to conduct research and development of LED lighting related to BYD, only officially unveiled in the world in 2010, and a lot of "does not make it, has a blockbuster" posture. BYD's several major industrial clusters (IT, new energy, automobiles, etc.) rely on each other and support each other, leading to a more successful approach in the direction of vertical integration. Accumulated for 7 years and thin hair, funds are self-sufficient and courageous. BYD established a complete industrial chain of upstream LED chip R&D, mass production, and mid-to-downstream packaged products. Through active international lighting exhibitions and negotiations with domestic and foreign merchants, BYD has achieved horizontal widening and vertical precision of industry clusters. In the Chinese industry, BYD Lighting can be said to have brought a big shock.

In fact, the strategic atmosphere of vertical integration in the lighting industry will become even more intense as the LED lighting market accelerates penetration next year. In 2009, LED lighting output in the global lighting market was approximately US$2.4 billion, and its penetration rate was only 3.3%. It is estimated that the proportion of LED lighting in the global general lighting market will rise to 50% in 2015 and 80% in 2020. It is also predicted that the large-scale replacement of LED lighting will be started in late 2011 and early 2012, and 2011-2012 will be an important investment point for the LED lighting industry. As the LED lighting industry chain extends its production to LED lighting modules (light sources) and LED lighting fixtures, it brings with it a change in the competitive landscape of home appliances. We clearly see that upstream companies go downstream and downstream companies go upstream and vertically. The pace has accelerated.

Whether it is the individual business or the entire lighting industry itself, only by fully respecting technology, respecting quality, and respecting the competition for strength can we truly benefit from the vertical integration strategy. Only in the context of LED lighting becoming the global lighting trend can the “gold rush” be successful. .