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On the price, the right to speak in the hands of who

“Has been talked about horizontal integration, we all think it is very difficult, then the difficulties where a large enterprise mergers and acquisitions of a small business, the two can do about, why do you want to find another place to manage?” In 2016 LED Engineering Annual Conference Chairman Zhang Xiaofei presented.

In fact, the upper reaches of the small business is basically not acquired, and update the equipment cost-effective than before much higher. Although the package can do some combination according to the product line, but now many small and medium packaging enterprises have not felt “dead to the imminent.”

At present, the entire LED industry chain integration, mainly in the lighting business integration, the other is the reverse, such as the middle reaches of the capital increase, this capital increase is not a merger, it is to ensure the stability of the supply chain, Price stability, which is also based on long-term business considerations.

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The other part is overseas mergers and acquisitions, there are successful cases, of course, there are cases of failure. Overseas mergers and acquisitions are mainly large and medium-sized enterprise acquisitions, large enterprise acquisitions, cross-border acquisitions, of which cross-border acquisitions will always be China’s acquisition of foreign countries, China to really enter the international channel is this way.

Some companies are entering the new energy industry, such as the Hongli Zhihui are all from the car network until the new energy vehicles, and even to the lithium battery; also extends from the display to the education, sports and so on. In fact, what future education will be made, we need to wait and see. But for now, some companies even after the acquisition even better than LED, which is worth learning from.

So, on the integration of the industry, whether it will form a supply chain camp it?

Epistar vice president Xie Mingxun photoelectric, said the integration will eventually become a camp against the glory of the camp, it is inevitable. Our camp is starting from the mid-range, from the application to find the packaging partner in the reverse, it is linked into a camp, each application will have a different camp.

It is worth mentioning that Epistar is the first to do AC, and even Samsung did not it early.

So, packaging companies will choose camp it?

National Star R & D Center, said Xie Zhiguo, deputy director of the packaging camp has been formed, including the middle reaches, downstream, and now has a relatively strong. Although the packaging business has some right to speak, but still in a weak position.

In fact, the country is also a star of their own upstream, then Crystal Electronics?

“We choose specialized division of labor partners, the camp is there. Packaging in the middle stage, by the upstream price and terminal prices, in the middle to guide and coordination, more through technical solutions to deal with. Electronic LED Division General Manager Zheng Yongsheng mentioned.

Admittedly, for the middle of the package, the price is not too much on the right to speak.

“For this camp, can be divided into two types, one is within the group, one is external, and the strongest camp is the most vitality.”

“We are also vulnerable groups, our strategic approach, integrated circuits and traditional compared to there are some differences, we are in the creation of performance, functionality, as a life, nurtured into products.”

In view of this, the upstream is really very helpless, the downstream will also tolerate a part of the most boil down or down. Because, once the middle reaches of the production line to stop, it is very painful for the downstream. Zhang Xiaofei put forward, “We still slightly relaxed on the upstream point, after all, the upstream is also suffering for many years.”

With the optical environment, general manager of Liu Gang, frankly, \ But for the same side, in 2016, we have not communicated with other manufacturers, the same time, the company is not the same, Anyway, is the same side to take a step, adjust the price.

All in all, 2017, should not be together up the pattern, so messy. Instead, we through consultation, exchange, understand the nature of where the rise, but also through various links to reduce some unnecessary costs, including labor costs, management costs.

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