Localization of the mainland backlight market accelerates the investment layout of many packaging factories

[Reporter / Wang Cairong] Although the penetration rate of LED backlight market tends to be saturated, the layout of domestic LED backlight package manufacturers remains undiminished.

On February 24, Ruifeng Optoelectronics (300241.SZ) issued the "Foreign Investment Correction Announcement", saying that Ruifeng Optoelectronics and Shenzhen Lingtao Optoelectronics Technology Co., Ltd. (hereinafter referred to as "Lingtao Optoelectronics"), Peng Xiaoling and Wang Weiquan signed the "equity" The Subscription Agreement stipulates that Ruifeng Optoelectronics will invest RMB 30 million to purchase 15% of Lingtao Optoelectronics.

Another domestic backlight source company, Zhaochi (002429.SZ), recently announced that it plans to invest 500 million yuan to set up Jiangxi Zhaochi Photoelectric Co., Ltd. (hereinafter referred to as "Jiangxi Zhaochi") to expand the company's LED backlight and lighting. The capacity of the packaged products will further optimize the business layout, enhance the scale advantage and consolidate the status of the industry.

In addition, a number of packaging plants, including Jufei Optoelectronics (300303.SZ) and Yimeixinguang, have continued to expand their backlight business since last year.


Relevant statistics show that the penetration rate of LED-backlit LCD TVs has reached 90% in 2013, which indicates that the demand for large-size backlight market will enter the saturation stage. Ruifeng Optoelectronics chose to enter the small and medium size backlight market, or it is based on the strategic layout of the large-size backlight market in the next two years.

"In terms of small and medium-sized backlight business, Ruifeng Optoelectronics has not made great efforts to do it before. Now it will be slower to expand its own production. It will be distributed through a certain market share and a considerable scale of enterprises. For Ruifeng Optoelectronics, A better choice.” Gong Weibin, chairman of Ruifeng Optoelectronics, said in an interview with Gaogong LED recently that Lingtao Optoelectronics has been operating in the small and medium size backlight market for five or six years. Ruifeng Optoelectronics can use this platform to Expanding related business is very beneficial to both parties.

Gong Weibin said that Ruifeng Optoelectronics may continue to increase investment in Lingtao Optoelectronics in the future. Lingtao Optoelectronics' goal will be to become one of the best companies in the small and medium-sized backlight industry, and continuously occupy small and medium-sized products represented by Jufei Optoelectronics. Backlight first entrant's market share.

In fact, the small and medium-sized backlight market has gradually become saturated, and the penetration rate has even reached 100%. Then, choose Ruifeng Optoelectronics, which is vigorously deploying small and medium-sized backlight business at this time, and what is the consideration?

The answer given by Gong Weibin is, “Although the small and medium size backlight market is close to saturation, in the future, with the increasing demand for smart terminals such as smart phones and IPADs, there will be some room for growth. In this respect, the competitive advantages of Taiwanese enterprises. It's more obvious, but if Ruifeng Optoelectronics has some layouts in terms of patents, there is still a big chance."

For Gong Weibin, who has always been keen on market sentiment, this strategic layout seems to be quite reasonable. However, for Jufei Optoelectronics, which entered the small and medium-sized backlight market earlier, it is an enemy.

The mutual penetration of the large and medium-sized backlight markets has become one of the tactical choices of many packaging companies.

Xing Qibin, chairman of Jufei Optoelectronics, even released his words when he received investor research on March 5, and the company will enter the top three in the large-size backlight field within three years. "First of all, we must expand the market position and market share in the small size field. Secondly, we will expand the large-size backlight field. In the large-size backlight field, our overall market share is very small. Even if the entire market does not develop, we will take the market share. By increasing a few percentage points, you can have a relatively large growth, which is also a very important direction in recent years."

Obviously, Ruifeng Optoelectronics' layout of Lingtao Optoelectronics has stimulated the nerves of Jufei Optoelectronics to a certain extent. However, from the perspective of the entire backlight market, the two domestic LED backlight manufacturers are betting on the backlight market, or the instinctive response to the favorable market timing of domestic LED backlights in Taiwan and Japan and South Korea.

In fact, the supply of LED backlight market in mainland China has been monopolized by Taiwanese packaging factories. In recent years, with the rapid rise of LED packaging factories in mainland China, the backlight market is undergoing some changes.

Zhang Hongbiao, research director of the High-tech LED Industry Research Institute (GLII), said that the current share of domestic backlights accounts for only 20%-30% of the total backlight market share. With the further improvement of the competitiveness of domestic backlight devices, they are reserved for domestic LED backlight manufacturers. The growth potential of the market is very impressive.

Gong Weibin also admitted that in the mainland, whether it is a large size or a small and medium-sized backlight manufacturer, the time to replace the market position of manufacturers in South Korea and Taiwan should be very fast. “Korean and Taiwanese companies do not have much outstanding advantages in technology and products. I think these companies will soon be defeated, and domestic backlight companies will gradually dominate.”

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