Can LED companies join forces to usher in the new dawn of the industry?


LED companies have joined forces to become a trend. Are major LED companies considering strong cooperation? Is it possible to open up a new world of LED?
Event summary:
Recently, Ruifeng Optoelectronics announced that it plans to jointly invest with TCL Group Co., Ltd. and Yuxing Enterprise Co., Ltd. to jointly establish a joint venture company in Huizhou Zhongkai High-tech Development Zone. The company accounts for 25 of the registered capital of the joint venture company. The company's business scope covers the research and development, manufacturing and sales of LED related products. Sales scope and domestic and foreign markets.
Recently, Sanan Optoelectronics Co., Ltd. and Zhaochi Co., Ltd. respectively announced that Sanan Optoelectronics Co., Ltd. Anhui Sanan and Zhaozhao Subsidiary Shenzhen Zhaochi signed the "Strategic Procurement Framework Agreement", the agreement stipulates: the future one from the date of signing the agreement During the year, Shenzhen Zhaochi will purchase a total of 500 million yuan of LED chips from Sanan, Anhui, which accounts for about 15.3 billion sales revenue of Sanan Optoelectronics in 2012.
Event analysis:
Downstream demand is tight, and the industry is clearly picking up. Since the beginning of this year, the LED market has begun to improve. In particular, demand growth has been strong in the second quarter. Sanan Optoelectronics said that in addition to several research and development equipment, the company has more than 130 MOCVD equipment in production. And the additional issuance plan abandoned in March was re-introduced at the end of May, showing the company's confidence in the downstream demand of the industry. Zhaochi shares also said that with the release of downstream LED lighting demand and the gradual shift of TV backlights to domestic purchases, the revenue of Zhaochi's LED business has ushered in rapid growth. According to the management's goals, the sales of Zhaochi Energy Saving Lighting Co., Ltd. will increase to 10% of the sales revenue of Zhaochi, and it is confident that it will become one of the top five LED companies in China in the next 3-5 years. The announcement highlights the company's full orders, which also shows that the management is full of confidence in the company's LED business development.
The production capacity of enterprises has generally tightened, and the strength has joined forces to become a trend. Since the second quarter of this year, the LED industry has clearly warmed up, and the supply of various enterprises has been in short supply, and the production capacity has generally tightened. At the beginning of July, Ruifeng Optoelectronics has announced that it intends to use its own funds to invest in SMLED expansion projects. The cooperation with TCL Group and Yuxing Company has been a secondary investment in the short term, showing the full confidence of the companies in the industry. And this round of investment is strong and join forces to become a trend. The combination of upstream and downstream enterprises is conducive to the long-term development of the LED industry. For enterprises, this form of cooperation is conducive to giving full play to their respective resource advantages and reducing their production costs. Stable demand for each company's industrial chain.

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