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LED chip giant CREE is trying to become a LED lighting manufacturer, but the fast-growing Chinese market has made it a bit uncertain.
“We are negotiating to bring the LED lighting industry to China.†On September 4, Li Shiyi, managing director of Career Hong Kong, told New Industry that Cree’s LED chip capacity in China is fully capable of coping with the future of the company. The growth, so the introduction of advanced LED lighting products into the Chinese market, is currently the focus of the company.
Tang Guoqing, a senior consultant of Career Hong Kong, pointed out that bringing LED lamps to China is to build a full LED industry chain in China, but the specific way for LED lamps to enter the Chinese market has not yet been determined.
“This seems to have become a tangled expansion of Career China's market.â€
Zhang Hongbiao, research director of the High-tech LED Industry Research Institute, told the "New Industry" that China has become an important production base and market for Cree, but Cree sells LED packaging devices in China. If the company introduces Cree LED lamps into China, it will inevitably lead to the situation of self-owned lighting brands and downstream lighting customers, and even affect the fast-growing LED chip business of China Tax. “But Chinese governments are vigorously popularizing LED lighting products, which is a huge opportunity for Cree LED lighting business.â€
"New Industry" learned from Cree that 90% of LED packaged devices from Cree are produced in Huizhou. In the first half of this year, Huizhou Core's sales revenue increased by 15%. More critically, as of June 24, in the fiscal year of Cree, China’s market revenue accounted for nearly 40% of Cree’s total revenue.
Lighting factory
"Compared with Nichia, Philips and Osram, Cree's LED chip business is still a little single, and business expansion needs to be accelerated in the future." Zhang Hongbiao pointed out that among the major international LED giants, Nichia has fluorescent products in addition to LED chips. Businesses such as powder and permanent magnet materials; Philips and Osram not only have LED chip business, but also international giants in the field of lighting.
Perhaps based on this, in August last year, Cree acquired lighting manufacturer Ruud Lighting Incorporated in cash and share swaps, and at the same time added new investment to expand the Ruud Lighting Incorporated factory. Cree expects that after the merger, LED lighting revenue will account for more than 20% of Cree's total revenue.
In August, Career announced that its revenue for the fourth quarter of fiscal 2012 was $307 million, an increase of 26% year-on-year and an increase of 8% quarter-on-quarter. In fiscal 2012, Corey earned $1.16 billion, an increase of 18% year-on-year.
From the above information, the expansion of LED lighting business should be an important reason for the growth of Cree's performance, and the future strategic development goal of Cree should be not only the LED chip giant, but the international giant in the field of LED lighting.
Because, although the LED chip technology is still developing rapidly, the time to develop the ceiling from the technology is also approaching. On the contrary, the technology of mainland LED chip manufacturers represented by Sanan Optoelectronics is becoming more and more mature, and it has threatened the market of LED chip manufacturers in Taiwan. It has broken through LED high-power technology and cut into the sites of international LED giants such as Cree. It is also sooner or later. thing.
Therefore, Cree must lay out early, with the advantage of LED chip technology, quickly cut into the LED lighting market, create an advantageous LED lighting industry chain, and achieve cornering overtaking in the lighting field.
More critically, the situation of market competition is also becoming increasingly incandescent. There are also reasons for the global economic situation, such as Philips and Osram and other giants to accelerate the layout of the Chinese market.
A senior manufacturer of domestic LED packaging manufacturers told the "New Industry" that Philips and Osram are eroding the market of Cree's high-power LED chips, which has threatened the market share of Cree.
Unfinished
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[Source: "New Industry" October issue reporter / Luo Gemei]