Taiwan LED business strategy should be adjusted

Business opportunities in Mainland China led huge market demand. Optical General Manager of the new century in Taiwan, said Xu Shihong, in recent years, mainland China's LED industry has developed quickly, mainly because many of the talents and resources in Taiwan technology continues to enter the mainland, plus LED into the threshold is not high, China's mainland as a key to the development of LED industry , from upstream to downstream of the patented technology materials and products are planning their own production, fast. Current practitioners in Taiwan LED industry chain and the main advantage is that the integrity of process technology, must adjust their mentality and strategy pattern, compared to the mainland China market in response to the recent change in the situation.

Taiwan LED chip factory in the new century listed optoelectronics, the main products for blue, green LED, recently in the outdoor advertising market in mainland China company won China's Hangzhou Silan and become a major supplier to the end of the third quarter of this year, The average gross profit margin remained at 40%. The company is also optimistic for the fourth quarter, revenues are still high due in October, so although we think that revenue will decline from November to December, but the overall expected fourth quarter revenue decline was still less than the same industry, is expected to decrease less than 10%.

For the LED market in Mainland China, Xu Shihong, said there are several unique phenomenon, first, as long as there is market LED, for example, the formal side pieces, the big picture, beads raw footage and more. Second, the market demand for contending, the third day price fluctuations in the three cities. Application of high-end SideView growth in China is currently still small, but the outdoor billboards, lighting and other applications are mainland China's relatively rapid growth in demand now, and the demand for relatively large number of scale items. LED demand in this area is not required in the brightness is so high, relative stability and reliability of the demand is higher.

Xu Shihong, said mainland China's LED industry is the recent development of very fast, because these years, many Taiwan manufacturers and talent and technology resources into China mainland market. Threshold of LED technology with the industry itself is not high, the central government in mainland China have subsidies, local governments have also taken into LED industry to build high-tech industrial park, resulting in today LED package from upstream to downstream industry in the extension of the scene everywhere.

More travel, for example, mainland China LED chip industry is currently the industry distribution, concentrated in the Bohai Sea region, the Yangtze River Delta, Pearl River Delta, Xiamen, Nanchang, Wuhan and so on areas. Dalian Bohai Bay Road, which has the United States, Beijing long intellectual power source, Beijing Rui source, Shandong Huaguang, Hebei Department of energy, Qingdao O Long, Beijing, San Kejia, Hebei Lide, Hebei Qing Rui, Jining blue. Pearl River Delta area has a large square in Shenzhen, Hong Kong Puguang, Guangzhou ceramics, Dongguan Gao Hui, Shenzhen Orient, Shenzhen Century Epitech, Hong Kong really bright. Shanghai Yangtze River Delta region of blue, Sapphire Shanghai, Hangzhou Silan, Shanghai Yu body, Yangzhou, China, Zhenjiang Traore, Hangzhou whales. Others are Jiang Xi Fuke, Jiangxi joint creation, Jiangxi crystal energy, security Xiamen, Xiamen dry trillion, Wuhan Di source, Can Wuhan, Xi'an in the micro, Quanzhou, crystal blue, Hunan by Xing pyroelectric and so on.

Xu Shihong that the current advantages of Taiwan's LED industry is holistic, including supply chain, technology, integrity, and so yield, but some practitioners in mainland China LED is not no chance to catch up as soon as possible. Mainland China LED industry, mainly due to the national basic research program, from the MOCVD machine, HVPE equipment, process equipment, single crystal materials to even phosphor, etc., in mainland China are planning to do it yourself. Compared to practitioners in Taiwan have always been alone, deep pockets of the rich and the manufacturers to do more research and development resources, shallow pocket is in a downturn, companies are often barely. The face of mainland China's LED industry, a systematic campaign, has been formed in Taiwan LED practitioners immediate crisis. New Century had full vote in 2003 to China's mainland market, mainly because when the new century, second-tier product line in the Taiwan area of ​​large packaging factory has hurt business, in order to allow the smooth functioning of the company decided to move forward toward the China mainland. Currently, the new century the mode of operation in Mainland China, mainly through local sales agents more reliable.

However, despite the attractive market in mainland China, but Xu Shihong stress and danger everywhere in mainland China market, LED practitioners in mainland China for position to be very cautious. Analysis of recent years, the main risk often occurs, no more than in the accounts, as well as on the perception gap between local and indigenous knowledge. For example, the problem is not often hear of local, often based on experience in the future lead to big problems and so on.

On the other hand, mainland China's LED market conditions there are also technical knowledge on the differences between middle and lower reaches, variation in levels of the industry, including the extension of the yield determined that control of process conditions, packaging technology and environmental control, etc., resulting in LED products not only from the wavelength, brightness and other optical properties of specifications and testing standards on the variety, the quality of the product itself has a big gap. China's mainland market, there is often coupled with inappropriate human manipulation, making local markets trading weak foundation of mutual trust, and mainland manufacturers to clear inventory movements normality, is the largest mainland market variables.

Overall, Xu Shihong that Mainland China is now the LED industry as a key development in the industry, whether financial, technical and management capacity, are being hard to catch up in Taiwan LED practitioners. Mainland China is no longer a secondary market for goods or clear stock. If Taiwan manufacturers in accordance with the company's product features, cut into the appropriate markets, and trade-offs in operating mode, compared to mainland China due to prevailing market-changing. For example, the division of labor for the manufacturing and the rationality and strategic considerations to be assessed, or for the sales channels and business segments, sales agents through local vendors and more.