[Source: "High-tech LED - Research and Review" October issue reporter / Zhao Hui]
For large enterprises with market channels and brand advantages, leading in the industry and abundant funds, the moment when the industry is approaching explosive development is often the time to choose to participate in shares and mergers and acquisitions, especially in the context of the future development of the industry.
On November 12, Sanan Optoelectronics (600703.SH) announced that Xiamen Sanan Optoelectronics Technology Co., Ltd., a wholly-owned subsidiary of the company, plans to use self-raised funds of no more than 2.352 billion Taiwan dollars (about 505.68 million yuan). Taiwan-based stock exchange listed company Yanyuan Optoelectronics issued no more than 120 million ordinary shares in private placement. Upon completion of the transaction, Sanan Optoelectronics Technology will hold approximately 19.9% ​​of the shares of Yanyuan Optoelectronics and become the largest shareholder of Yanyuan Optoelectronics.
According to statistics from the High-tech LED Industry Research Institute (GLII), by the end of 2012, Sanan Optoelectronics had a total capacity of 144 MOCVDs. If it added 101 MOCVDs, the total capacity of the two parties was 245 MOCVD. This figure is second only to the total capacity of 334 units of the Pan-Platinum Group (Chengyuan Optoelectronics and its holdings and shareholding companies) in 2012.
From an enterprise perspective, an important trend is to reduce the cost of chips based on the integration of value chains and the expansion of production capacity as a whole.
For the current LED upstream enterprises, if they want to “winter†and break through in the market, how to truly reduce costs and achieve an increase in lumens per dollar is the most important.
This time, the capital cooperation between Sanan Optoelectronics and Yuyuan Optoelectronics can realize the true integration of production capacity and technology, and rapidly improve the market cooperation ability of both parties. Perhaps it is the success or failure of the battle with Jingyuan Optoelectronics.
Huaan Sanan
Previously, Yuyuan Optoelectronics, which is in the second place of Taiwan's epitaxial film, was expected to merge with Jingdian. However, the chairman of the board of directors, Jane Fung, responded “almost impossibleâ€. He said that Yuanyuan is actively strengthening the expansion of the strategic alliance of various application products to the sea, "we will win next year."
This time, Yuyuan Optoelectronics finally chose Sanan Optoelectronics, which seems to be accidental in the industry. But think carefully, perhaps the best choice for both parties.
As the current domestic LED epitaxial wafer and chip leader, Sanan Optoelectronics has full-color LED chip production capacity, which is second only to Jingdian in the production capacity of the two places. However, Sanan's products are currently concentrated in the low-end LED chip market.
Yuyuan Optoelectronics is the second largest manufacturer of LED epitaxial wafers and chips in Taiwan. It has a number of LED core patent technologies. The main markets are in Asian markets such as Taiwan and Korea, and have a good customer base in the mainland high-end market.
Sanan Optoelectronics said that this time, the company will form a close strategic partnership, and further cooperation in procurement, production, sales and other aspects, effectively combine the characteristics of both sides, and play their respective advantages, mutual benefit and win-win, Enhance core competitiveness and continue to strengthen the company's comprehensive competitiveness and brand influence in the global optoelectronic field.
According to media reports in Taiwan, Jane Feng Ren said that the production capacity of Haoyuan Optoelectronics is too small, and the cost is too high, but Sanan Optoelectronics has a large production capacity and the lowest cost. In the future, the cooperation between the two parties can reduce costs, and at the same time, let Yuanyuan Optoelectronics enter the mainland market smoothly. Sanan Optoelectronics can enter the overseas market through the international channel of Yuyuan Optoelectronics. The cooperation between the two parties can create a win-win situation.
"This trip to Sanan is a win-win situation for both parties. Sanan can use this to enter the Taiwan market and move on to the international market and promote its internationalization process." Dr. Zhang Xiaofei, CEO of Gaogong LED, said that through the cooperation Technical cooperation and other methods can accelerate the improvement of Sanan Optoelectronics' technical strength and improve the market acceptance of products.
In the past few years, Yuyuan Optoelectronics has not been as good as expected after entering the mainland market, with a market share of less than 10%. In this cooperation, Yuyuan Optoelectronics is also hoping to use the advantages of Sanan Optoelectronics in the mainland government and market channels to promote its business development in the mainland.
Join hands to fight against crystal
In the past history of the mainland LED upstream epitaxial chip industry, the LED industry competitors in Taiwan once made the mainland enterprises feel at a loss in terms of product cost performance. Especially in recent years, a series of integration and mergers and acquisitions of Taiwan's LED epitaxial chip factory represented by Jingdian, as well as the industrial chain layout in the mainland, pose a serious threat to the domestic LED epitaxial chip factory. Jingyuan Optoelectronics is the largest number of foreign-invested companies investing in LED chip production bases in the mainland. As of the end of the third quarter of 2012, it has a total of five LED chip production bases. As the world's largest red LED chip, the world's top two blue LED chip manufacturers, Jingyuan Optoelectronics has more than 1,400 invention patents.
In the expansion of the mainland market, Jingdian mainly adopts the horizontal alliance mode, which is mainly in the form of joint ventures with downstream customers. Its joint ventures mainly include Jingpin Optoelectronics in Changzhou and Jingyu and Development Crystals in Xiamen. Jingxin in Guangzhou and Shandong Guanyu, a joint venture between Shandong and UMC.
As a leading LED epitaxial chip company in China, Sanan Optoelectronics naturally feels the competitive pressure brought by the continuous expansion of Jingdian in the mainland in the past two years. It is also urgent to continuously expand production capacity through the means of equity participation and acquisition, and enhance its technical strength to maintain the mainland market. market status.
Just a few months ago, Jingdian just acquired Guangcai, which further widened its production capacity and rounded up its living space in the Taiwan market.
The competition between Jingdian and Yuyuan in the downstream market is also extremely fierce. In addition to the traditional backlight, lighting is also a must for both sides.
As of the end of the third quarter of 2012, the MOCVD machine of Yanyuan Optoelectronics in the mainland and Taiwan has expanded to 100 units, and it is one of the few Taiwanese extension plants that continue to expand production. In addition to the cooperation with Sanan Optoelectronics, the recent briefing of the media said that the strategic alliance with BOE will be announced before the end of the year, thus achieving greater vertical integration.
Regarding the threat posed by this shareholding move to Jingdian, Zhang Xiaofei believes that Sanan Optoelectronics hopes that the purpose of jointly fighting against the strong position of the crystal power market through the strategic cooperation with Yuyuan is very obvious.
However, he also said that the advantages of crystal power are obvious. In the short term, neither Sanan nor Yuanyuan can shake the technical and market advantages of Jingdian. Â Â Â Â Â
For large enterprises with market channels and brand advantages, leading in the industry and abundant funds, the moment when the industry is approaching explosive development is often the time to choose to participate in shares and mergers and acquisitions, especially in the context of the future development of the industry.
On November 12, Sanan Optoelectronics (600703.SH) announced that Xiamen Sanan Optoelectronics Technology Co., Ltd., a wholly-owned subsidiary of the company, plans to use self-raised funds of no more than 2.352 billion Taiwan dollars (about 505.68 million yuan). Taiwan-based stock exchange listed company Yanyuan Optoelectronics issued no more than 120 million ordinary shares in private placement. Upon completion of the transaction, Sanan Optoelectronics Technology will hold approximately 19.9% ​​of the shares of Yanyuan Optoelectronics and become the largest shareholder of Yanyuan Optoelectronics.
According to statistics from the High-tech LED Industry Research Institute (GLII), by the end of 2012, Sanan Optoelectronics had a total capacity of 144 MOCVDs. If it added 101 MOCVDs, the total capacity of the two parties was 245 MOCVD. This figure is second only to the total capacity of 334 units of the Pan-Platinum Group (Chengyuan Optoelectronics and its holdings and shareholding companies) in 2012.
From an enterprise perspective, an important trend is to reduce the cost of chips based on the integration of value chains and the expansion of production capacity as a whole.
For the current LED upstream enterprises, if they want to “winter†and break through in the market, how to truly reduce costs and achieve an increase in lumens per dollar is the most important.
This time, the capital cooperation between Sanan Optoelectronics and Yuyuan Optoelectronics can realize the true integration of production capacity and technology, and rapidly improve the market cooperation ability of both parties. Perhaps it is the success or failure of the battle with Jingyuan Optoelectronics.
Huaan Sanan
Previously, Yuyuan Optoelectronics, which is in the second place of Taiwan's epitaxial film, was expected to merge with Jingdian. However, the chairman of the board of directors, Jane Fung, responded “almost impossibleâ€. He said that Yuanyuan is actively strengthening the expansion of the strategic alliance of various application products to the sea, "we will win next year."
This time, Yuyuan Optoelectronics finally chose Sanan Optoelectronics, which seems to be accidental in the industry. But think carefully, perhaps the best choice for both parties.
As the current domestic LED epitaxial wafer and chip leader, Sanan Optoelectronics has full-color LED chip production capacity, which is second only to Jingdian in the production capacity of the two places. However, Sanan's products are currently concentrated in the low-end LED chip market.
Yuyuan Optoelectronics is the second largest manufacturer of LED epitaxial wafers and chips in Taiwan. It has a number of LED core patent technologies. The main markets are in Asian markets such as Taiwan and Korea, and have a good customer base in the mainland high-end market.
Sanan Optoelectronics said that this time, the company will form a close strategic partnership, and further cooperation in procurement, production, sales and other aspects, effectively combine the characteristics of both sides, and play their respective advantages, mutual benefit and win-win, Enhance core competitiveness and continue to strengthen the company's comprehensive competitiveness and brand influence in the global optoelectronic field.
According to media reports in Taiwan, Jane Feng Ren said that the production capacity of Haoyuan Optoelectronics is too small, and the cost is too high, but Sanan Optoelectronics has a large production capacity and the lowest cost. In the future, the cooperation between the two parties can reduce costs, and at the same time, let Yuanyuan Optoelectronics enter the mainland market smoothly. Sanan Optoelectronics can enter the overseas market through the international channel of Yuyuan Optoelectronics. The cooperation between the two parties can create a win-win situation.
"This trip to Sanan is a win-win situation for both parties. Sanan can use this to enter the Taiwan market and move on to the international market and promote its internationalization process." Dr. Zhang Xiaofei, CEO of Gaogong LED, said that through the cooperation Technical cooperation and other methods can accelerate the improvement of Sanan Optoelectronics' technical strength and improve the market acceptance of products.
In the past few years, Yuyuan Optoelectronics has not been as good as expected after entering the mainland market, with a market share of less than 10%. In this cooperation, Yuyuan Optoelectronics is also hoping to use the advantages of Sanan Optoelectronics in the mainland government and market channels to promote its business development in the mainland.
Join hands to fight against crystal
In the past history of the mainland LED upstream epitaxial chip industry, the LED industry competitors in Taiwan once made the mainland enterprises feel at a loss in terms of product cost performance. Especially in recent years, a series of integration and mergers and acquisitions of Taiwan's LED epitaxial chip factory represented by Jingdian, as well as the industrial chain layout in the mainland, pose a serious threat to the domestic LED epitaxial chip factory. Jingyuan Optoelectronics is the largest number of foreign-invested companies investing in LED chip production bases in the mainland. As of the end of the third quarter of 2012, it has a total of five LED chip production bases. As the world's largest red LED chip, the world's top two blue LED chip manufacturers, Jingyuan Optoelectronics has more than 1,400 invention patents.
In the expansion of the mainland market, Jingdian mainly adopts the horizontal alliance mode, which is mainly in the form of joint ventures with downstream customers. Its joint ventures mainly include Jingpin Optoelectronics in Changzhou and Jingyu and Development Crystals in Xiamen. Jingxin in Guangzhou and Shandong Guanyu, a joint venture between Shandong and UMC.
As a leading LED epitaxial chip company in China, Sanan Optoelectronics naturally feels the competitive pressure brought by the continuous expansion of Jingdian in the mainland in the past two years. It is also urgent to continuously expand production capacity through the means of equity participation and acquisition, and enhance its technical strength to maintain the mainland market. market status.
Just a few months ago, Jingdian just acquired Guangcai, which further widened its production capacity and rounded up its living space in the Taiwan market.
The competition between Jingdian and Yuyuan in the downstream market is also extremely fierce. In addition to the traditional backlight, lighting is also a must for both sides.
As of the end of the third quarter of 2012, the MOCVD machine of Yanyuan Optoelectronics in the mainland and Taiwan has expanded to 100 units, and it is one of the few Taiwanese extension plants that continue to expand production. In addition to the cooperation with Sanan Optoelectronics, the recent briefing of the media said that the strategic alliance with BOE will be announced before the end of the year, thus achieving greater vertical integration.
Regarding the threat posed by this shareholding move to Jingdian, Zhang Xiaofei believes that Sanan Optoelectronics hopes that the purpose of jointly fighting against the strong position of the crystal power market through the strategic cooperation with Yuyuan is very obvious.
However, he also said that the advantages of crystal power are obvious. In the short term, neither Sanan nor Yuanyuan can shake the technical and market advantages of Jingdian. Â Â Â Â Â
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