Gaogong LED CEO Conference Upstream Session: Survival or Waiting

[High-tech LED reporter 甄舜Guangzhou report] On August 17-18, 2012, the 9th Gaogong LED Industry Summit held in conjunction with the 2012 Gaogong LED Exhibition was held in the conference room on the third floor of Guangzhou Poly World Trade Center. The CEO Conference is divided into three parts, focusing on the upper, middle and lower reaches of the industry chain. The meeting invited senior executives from well-known listed companies including Taiwan Jingyuan Optoelectronics, New Century Optoelectronics and Tongfang, Guoxing Optoelectronics and Ruifeng Optoelectronics. He delivered keynote speeches and shared unique industry insights, the latest cutting-edge technologies in the industry, and lighting market strategies.

The unprecedented size of the CEO Conference and the audience's full meeting also fully demonstrated the industry's great enthusiasm and concern for this high-tech LED CEO conference.

On the afternoon of August 17th, the CEO Conference Theme Conference I was grandly debuted. Dr. Wu Enbo, Vice President of the Hong Kong Applied Science and Technology Research Institute, acted as the moderator. By Mr. Liang Qichao’s sentence, “Makino Ying Yang, half-year-old meritorious service was only half; Luoyang Tigerview, Bafang Fengqing Huizhongzhou "As the opening words of the meeting.



The first keynote speech was Dr. Zhang Xiaofei, CEO of Gaogong LED CEO and Senior Industrial Research Institute. He gave a wonderful speech on China's LED industry structure and top ten trends.

Zhang Xiaofei, Dean of the High Industry Industry Research Institute

Zhang Xiaofei said that in view of the current status of the industry, he proposed "four major military forces, four major wars, ten major trends, six major factors", analyzed the advantages and disadvantages of the four types of LED enterprises, the four major problems faced by enterprises, and summarized the future of LED The megatrend and the six success factors won the warm applause of the guests present.

Zhang Xiaofei believes that the six successful factors include: First, the ability to integrate channels, because you can never do a big business, how much can OEM do? After all, there is still a big difference between LED and iPad. Even if the control system is made, there are not many people who can buy it. Second, the ability to undertake and build large-scale projects; third, merger and acquisition capabilities, digestion capabilities; Fourth, R & D and design capabilities; Fifth, OEM / ODM capabilities; Sixth, international market development capabilities.

Li Bingjie, Chairman of Taiwan Jingyuan Optoelectronics Co., Ltd. made an in-depth analysis of the dangers and opportunities in the upstream, the elements of upstream survival and the necessary capabilities and the future pattern.

Li Bingjie, Chairman of Jingyuan Optoelectronics Co., Ltd.

Li Bingjie pointed out that this year's domestic (China mainland and Taiwan) production capacity reached more than 20% of the world's production capacity for the first time. In the past, every time I saw China's production capacity was between 5% and 6%. But he said that this is just capacity data, in fact, the operating rate is only less than 70%. In terms of size, the demand for two inches in the world is stabilizing, 4 inches is gradually increasing, and the 6-inch part is slowly reflecting. He said that until 2014, there will be a slight closer proximity between supply and demand.

Liu Gang, general manager of Tongfang Optoelectronics Technology Co., Ltd., analyzed the characteristics of the industry chain, the characteristics of the industry chain, the key elements of the entire industry chain, and the practice of the entire industry chain model.

Liu Gang, General Manager of Tongfang Photoelectric Technology Co., Ltd.

Liu Gang pointed out that when the industry chain is very strong, the closer the industry chain is, the higher the efficiency of resource allocation. For LEDs, its relevance is quite high. When the industrial chain is very long, the flat processing can be extended, so that the application to the end, the entire industrial chain is very long. He believes that the key to constructing the elements of the entire industry chain is that the chairman, the president, or the decision makers and decision-making units must have a clear strategic plan.


Zhong Kuanren, Chairman of New Century Optoelectronics Co., Ltd., analyzed the future changes and challenges of the LED upstream industry and the new prospects for the upstream of the industry, new opportunities and new directions.

Chairman of the New Century Optoelectronics Co., Ltd.

Zhong Kuanren said that doing business in China is cost-effective, but with the increase in production scale, everyone can provide good prices. He proposed to fight for value, technology is good, innovative, not enough, must make differentiated products to help customers enhance value and create different values. In this way, customer value has been improved and you can improve. Customers can make money, and you can make money.

Subsequently, the above guests and Zhao Jinrong, president of Northern Microelectronics, participated in a round-table dialogue on the LED upstream industry and interacted with the audience. When talking about what kind of upstream enterprises can survive and what kind of upstream enterprises can not be washed away in the future reshuffle, Dr. Zhang Xiaofei believes that if there are only 10 or less MOCVD companies in upstream enterprises, they will die.

Zhong Kuanren believes that scale is needed and technology is needed. To serve your customers, it is important to rapidly develop products and develop the specifications that customers need. Supply and shipment are important. "We are slowly realizing that it is very important to serve our customers. We can't compete with the price war. We are only focused on technological innovation. When it comes to technological innovation, everyone has different choices and visions."

In this regard, Li Bingjie gave an example to everyone: for example, everyone is desperately expanding their products and production capacity, but if you don’t spend time on innovation, you will face a problem after two years, and your production capacity is very large. But your product has not kept up with the technical requirements of the mainstream market. The result is that it has been good for a year or two, but then it has faced a major crisis.

Liu Gang said that the survival of enterprises depends mainly on two factors. First, funds are not the funds that have just started to be invested, but the liquidity when managing operations in the future. Second, technology, from now on, the technology of the three sides of the Taiwan Straits, As personnel exchanges become more and more tight, technical differences will become smaller and smaller, and market competition will become more and more fierce. This requires companies to be innovative in technology, whether they can make further differences with others.

Finally, Wu Enbai concluded that the surviving upstream enterprises must have market-oriented innovative thinking, and the entire company must have a culture of continuous innovation.

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