Introduction: Taiwan's "Business Week" article published today, said Terry Gou, and KY Lee has opened up a LED battlefield, in order to consolidate the momentum of high growth industries, has launched two technology Titans confront offensive.
Following is the text of the article:
March 18, 2010, record group officially merged with Chi Mei Optoelectronics; is, this time from the start, Hon Hai chairman Terry Gou and AU Optronics chairman KY Lee, has opened up another battleground.
On this day, all groups create and CMO of the first-line supervisors gathered Innolux Chunan plant, general manager of the new section of line built leading Chi Mei, Chi Mei to open a new after the first military cadres into the meeting.
Meeting the end, with everyone shouting "Come on! Come on! Come on!" Even a few meters away in the hall could hear, on the future challenges, build straight line segment, said, "very excited! Do not feel tired!"
Both grab the key puzzle
Dispute panel leader, win the LED supply chain
However, we should keep the first panel factory in Taiwan the throne, the new CMO still missing piece of the puzzle.
Scene back a month ago, the Taipei Arena, Hon Hai's annual year-end banquet scene, seating arrangements is often interpreted that year group, the different business group the best indicator of performance can also be seen in Guo Ming mind, the pros and cons.
This year has been "appointed" president sitting beside Guo, guest of the first row in front of the stage, not the biggest sales of personal computers embedded business group, but the Japanese LED (light emitting diode) manufacturers Nichia (Nichia ).
Why need Gou Nichia?
According to Topology Research Institute predicts that next year's LED notebook panel backlight penetration will reach 95% penetration rate monitors will reach 8%, television penetration will be close to 10%. These figures represent, is as high as 180 million units LED notebook computers, monitors and TV panels and OEM business.
In other words, its launch TV assembly market, Hon Hai, and ready to kill the leading OEM TPV monitors the group boarded the record, if no more that a small, illuminated LED, like a sharpshooter in the hands of gun without bullets, no matter how God can not hit the target potential.
LED technology has a patented Nichia, Terry Gou was a guest as the most important, because this is the new CMO into the largest military supply chain gaps.
KY Lee plugging
Winkle talent first, then vertical integration and cost cutting
But the panel works the most important key puzzles, KY Lee Terry Gou earlier than step up for the Friends of the completed building.
Just three days before the formal merger of the new CMO, KY Lee as AUO LED Suppliers Group to create the formal and Kai Ting Lunda electronic technology merger. Lunda merged upstream electronics will have LED epitaxy with the downstream packaging capacity, the Taiwan LED industry into a small "plus 100 million crystal electric light."
KY Lee, AUO led army, as early as 2006 shares Kai-ting LED packaging factory, and the year before the establishment of epitaxial plant Lunda electronics, quietly cut into the LED field, to foster its own technology Corps.
Although the LED is a hot area, but because Taiwan started late, not much talent, KY Lee's approach is to lure them away from the crystal electricity to the UMC, TSMC, is the object of his hunters.
Other than Taiwan because the epitaxial crystal power plants are long established, so adjust the MOCVD (organic vapor deposition) machines are the most abundant accumulation of experience; the other hand, LED should spend semiconductor manufacturing fab, it sets TSMC, UMC, has become the object of LED plant to lure them away.
In the early days of Lunda, AUO was recruited from the crystal blue electric technical experts in Tang Mu, who was once one of the founders Epitaxy is also a small number of long-term investment in Taiwan High-Brightness LED R & D personnel.
In order to get people, not listed Lunda follow 10 years ago TSMC, UMC, "with the stock Laiza people," an epitaxial plant director admits, to join their experienced personnel willing to knife the main cause is Now an 10 yuan a share, after the listing of possible future potential of soaring twenty times can be said that those who want to be the last wave of opportunities for tech elite.
Build capacity last year, Lunda, now has to use the MOCVD epitaxial about 27 units. An industry point out that the next six months, every month a new machine Lunda stationed, to the end of this year have the opportunity to expand to 100 units, almost half of crystal electric capacity.
When the group announced the merger of the Chi Mei Chong, the KY Lee AUO's LED full speed and action, by the end of December last year to merge Lunda and Kai Ting, the same period, AUO resources to the development of perfusion in the Lunda.
As the LED's patented technology held by the United States, Japanese companies hand, Lunda grain production is still patent considerations, so the products Lunda draped with AUO's panel shipment, with the AUO panel in this world-class plant certification, Lunda better able to avoid the United States, Japan LED plant patent landmines.
AUO to supply chain vertical integration, control LED from epitaxy, packaging, backlight module to the downstream panel TV assembly, to reduce the cost of space to the limit, when the strengthening and competitiveness of Hon Hai loggerheads.
KY Lee duck in the water, now AUO LED's strength began to show. A local broker, the researchers said, "Before we all joked Lunda really good light, no results look good; results in January of this year, I was really scared."
Had almost no shipments Lunda, this year, with AU Optronics brand products in mainland China LED TV, January shipments of 40,000 units, 50,000 units in February, to March volume as high as 10 million, doubled.
Gou come from behind
Alliance on the first plant, and then propagated plant parts
However, the development of LED Gou moves slowly in fact better than KY Lee, Hon Hai was established nine years ago, first cut into the LED street lamp Foxsemicon market, LED packaging factory was involved in the development of advanced optoelectronic private. But the two investment Steps to the Plate, advanced electricity and Pei Xin not only a loss year after year, and finally even the revocation of the advanced electric Emerging Stock Market.
Their own investment Consequently, Hon Hai Gou resorted to the strategy best at the past - alliances and acquisitions, and his number one goal is to launch the Taiwan LED companies battle over patent infringement Nichia.
Has so far set up more than five years, Japan Asia, the development of the world's first blue LED, is the leading LED manufacturers and grain of the dominant mobile phone backlight.
Gou plan to switch from the Hon Hai investment in the development of advanced optical LED packaging factory, to help Nichia factory expansion. Agreement, Foxconn will provide a guarantee of purchases by Japan Asia, to Nichia because they can not lead their own capacity to improve LED grain oversupply, and Hon Hai can get enough raw materials to support.
Because of Nichia's support, group creative enough to get a large number of high-quality grain, and even offer the traditional cold cathode fluorescent lamp (CCFL) LCD display comparable to attract single-line brand, currently group record in the LED display foundry capacity, has gone beyond the TPV as the world's largest.
Here is Terry Gou and KY Lee war strategy in the LED on the differences. As the complexity of LED patents, once encountered infringement lawsuits, the assembly is likely to Hon Hai TV, display products will not ship, so the system plant origin, Terry Gou, the access LED LED sources than its own supply chain integration more important.
Therefore, even if Terry Gou bought CMO, Chi Mei Optoelectronics get the LED epitaxial plant reinvestment Kellett technology and LED packaging factory optical Kai Yiu, the two have not been as widely expected merger, consolidation took Lunda Electronics logic.
Kellett will focus on the future of epitaxy, Kai Yiu focused package, Kai Yiu, general manager of Dingjing Long stressed, "As LED packaging and end of the application of highly relevant, so will the future development of Kai Yiu multiple differentiated packaging technology to meet the more and more diverse product needs. "
Terry Gou is counting on the one hand, in group foster Kellett and Kai Yiu, to supply the future demand in the low-end products, LED; two years, the high-end products are used on the development of advanced optical sub coupled with the LED.
Flames of war spread to the stock market
Ability to affect future fund-raising talents and capacity for war
This LED Wars, KY Lee vertical integration of technology panel factory thinking on the key components Gou train manufacturing plant system thinking, two groups of LED dispute ended in the supply chain integration, it is now also hit the capital market .
Log in February Kai Yiu just emerging, Lunda then sent Emerging applications in March, the two sides extended the battlefield to the stock market. Because the stock on behalf of the fund-raising capacity, LED for the future expansion of production capacity and talent battle chips, but will affect Taiwan's LED industry.
Further reading: LED Group war broke out, rob 66 trillion lighting business
Last October, in the "Business Weekly" cover story "electric vehicles, LED century revolution", we have reported, LED will be off the main characters battle the next hundred years, and must move towards integration and large-scale war.
Hon Hai and observe the layout of AUO, the LED will indeed prove to "the bigger the" group fighting the trend, the next like a crystal electricity, 100 million light such independent epitaxy and packaging plants, is bound to adjust its business model themselves do not, through its own development of the supply chain group was marginalized. The Hon Hai with AUO, can not be overlooked new rivals such as Taiwan Semiconductor Manufacturing Company's competitiveness, in fact, TSMC has been made even more than the former two are also more LED patent portfolio, strong strength.
The short term, LED backlight used in the market will be the first popular applications, but including Hon Hai, AU Optronics, TSMC and UMC and other major companies, the greater goal in mind, it is business as much as NT 60 6 trillion of "lighting market", with the governments to open up the timetable to ban incandescent bulbs, LED lighting market will follow to take off, then, the group battle between the LED before the official white-hot.
Further reading: Hon Hai parade of big - LED layout of the two groups
Items: raw materials (sapphire substrate)
Hon Hai Group: Xin Jing drilling, Zhao Jing
AUO Group: None
Project: upstream (epitaxy), middle (cut, picked)
Hon Hai Group: Nichia (alliance), Optical Kellett
AUO Group: Ronda
Project: downstream (package)
Hon Hai Group: Advanced development of optoelectronics, Kai Yiu
AUO Group: Ronda
Project: Assembly (backlight)
Hon Hai Group: Chi Lin
AUO Group: Fu Xiang, Kneip
Project: Terminal Application
Hon Hai Group: Hong accurate, Pei Xin, East Asia Optical
AUO Group: Wellypower, Qisda
With Taiwan panel production line has been built more than a generation technology gap
Taiwan economy news conference last night announced the opening of Taiwan for more than 6 on behalf of the LCD panel production line investment in the mainland. However, this measure with additional conditions.
Yesterday announced the additional conditions include: only allows Taiwanese companies in the Mainland set up three production lines, and with the Taiwan-built panel production line has a generation or more of the technology gap, such as Taiwan's flat panel giant AUO in Taiwan has 8.5 generation LCD panel production line, which means the company can only apply for the Mainland to establish 7.5-generation LCD production line.
These additional conditions, general manager of Taiwan's flat panel business group record that section of line built "too conservative"; AU Optronics said that as soon as possible to the relevant department of Taiwan's Mainland Construction of 7.5-generation LCD panel production line applications. Ministry of Industry and Wen Jianping, deputy general manager of its Ovid advice is that the current international difference a generation LCD production line is not important, because more than 7 on behalf of the production line are very mature.
Prior to that, subject to policy constraints, build factories in the Mainland and Taiwan's flat panel business plan has been ambiguous, but the Mainland planning more production lines are showing the figures of Taiwan's flat panel business. As TCL8.5 line with the Group on behalf of countless ties record; AU Optronics Tappi in Kunshan high generation optical line completed the initial layout.
"Taiwan to the panel companies 'deregulation' will benefit flat panel industry in the Mainland, but also to Taiwan's flat panel industry provides a chance to compete with Japan and South Korea." Wen Jianping analysis, "the mainland the next panel is not only the world's largest consumer market, but also production base, Japan and South Korea have long intervention, China Taiwan's flat panel industry as competitive as the other shares, if not enter it will miss many opportunities. "
Last year in December, Samsung and LG the South Korean government approval
Display investment in the mainland factories. Earlier, Japan's Sharp has also announced plans to build 8th generation factory in Nanjing; BOE, TCL and other domestic companies have also launched a high-generation panel plant construction projects.
Jianping Wen stressed that the future is certainly a flat market from top to bottom of vertical integration, there were only upper panel, there is no machine to support not going to work; only market for Mainland enterprises have no way out without upstream support. Panel is just a benchmark, it will lead to the glass, polarizers, chemical materials and so the whole industry chain transfer to the mainland and layout, thus promoting cross-strait industrial cooperation entered a new stage.
Department of Economics yesterday also announced a temporary moratorium on opening Taiwan's wafer (silicon semiconductor integrated circuits used in production of silicon wafers) Mainland enterprises to set up the project, but can be in the form of mergers and acquisitions through equity participation and investment.
Economic Times 2010/02/10 - Panel lifting and landing six generations of the following does not control more than six generations of three wafer testing and packaging for the limited conditional release of IC design
Panel landing relaxation
6 on behalf of the following does not control more than three to six generations of wafer testing and packaging limited conditional release of IC design
[Reporter Su Xiuhui / Taipei]
Yesterday Premier Wu Den-yih (9) Japanese investment in the mainland approved draft amendments to the negative list, panel, silicon wafer, the high-end packaging and testing, low-end IC design will be relaxed landing, after a key inter-ministerial technical team to review by the can release.
Taiwan stock closed today off Year of the Ox, the Executive Yuan sent relaxed timely gift. Cabinet officials last night said the Premier Wu case has been approved in the evening, the MOEA will be received after the promulgation of the document, which the panel visit the most breakthrough.
Officials pointed out that the cabinet decision-making, landing six generations do not control panel factory, more than six generations into the West will have three of the total quantity control; for why the set of three, officials said, because Taiwan has the ability to invest in the mainland for more than six-panel factory on behalf of the enterprise not more than three. Industry estimates, the current to AUO and Chi Mei, Kwan Chong, Chi Mei Toppoly new triple the most powerful.
As the leading technology generation gap about 1-2 generations, and can not be canceled due to the West and then set up factories in Taiwan investment projects, Taiwan's investment priorities to be relatively committed to ensure the development of domestic industries, and thus can not be layoffs because of the West employees in Taiwan employment opportunities. Panel industry visit must submit investment plans, the MOEA has on labor, financial and capital made use of such technology transfer control to set the outflow of investment in non-standard elements.
This wave of industry deregulation include landing manufacturing, services, agriculture and infrastructure, including sensitive and high-tech industry panel, wafer, the high-end packaging and testing, low-end IC design the most attention, in the "local to stay in the root, must be large branches in the mainland, "the premise, the key technical groups will be responsible for checking.
As part of wafer fabrication, is currently only open 8-inch wafer fab investment and equity participation, does not include 12-inch wafer new investment projects, mainly due to non-urgent visit the current industry needs.
TSMC "passive" SMIC Semiconductor owns 10% stake in UMC case of mergers and vessels are expected to be slow, so if TSMC, UMC attention it deserves, is equal to the market in mainland China to start an alternative arrangement, the situation will be greatly beneficial. As for the design of high-end IC packaging and testing and have landed the amount of control, once the investment threshold of 5,000 million U.S. dollars, which must be sent to review.
Agriculture is lifting the food industry in the poultry, livestock and meat products. Officials said the main consideration is that these products have a market in mainland China, nor sold back to Taiwan.
Economic Times 2010/02/10 - Panel big winner TSMC UMC attention it deserves
Panel big winner TSMC UMC attention it deserves
[Reporter Lin Anni / Taipei]
Executive Yuan has approved a new investment negative list on the mainland list. Panel industry is the big winner of this wave of open, not only landing new investments, equity participation can be adopted or mergers and acquisitions, obtaining mainland industry capacity. Wafer industry, open shares, TSMC, UMC, SMIC and their respective shares and ship the case may be homeopathic attention it deserves.
Executive Yuan, the book published by the Ministry of Economic Affairs.
Focus of this wave of open, including allowing panels, wafers, semiconductor IC design, packaging and testing, renewable energy landing, and the opening of direct investment in the financial industry, petrochemical industry ardent desire of the western investment in naphtha cracker plant, determine not to open the list.
Panel industry is the big winner of this wave of open, however, the government will invoke the experience of the past management fab landing, landing against the plant for more than six generations no more than 3 of the total quantity control, and technology with Taiwan to maintain at least a generation gap.
In the semiconductor part, the government will temporarily allow the industry to the mainland to the new fab, but you can shares and gains China fab stake. Informed official said wafer industry than no landing urgency, therefore not given priority in the ranks, but after opening up shares, TSMC, UMC, SMIC and their respective shares and ship the case, you can grasp the chance to mitigate this problem.
Officials stressed that the Ministry of Economic Affairs Management landing high-tech industry there are two premises, one of Taiwan leading technology, and the second is to give priority to investment in Taiwan. [Reporter Chen Bizhu / Taipei] Premier Wu Den-yih said wafer open 8
Inch wafer fab investment and equity participation, TSMC currently "passive" SMIC Semiconductor owns 10% stake in UMC case of mergers and ships are expected to mitigate this problem. But yesterday wafer planes (9) the same day that the Act required the latest content and then the outside, but everything required by the Government as the main premise.
TSMC and SMIC in November last year, a lawsuit settlement, to be the legitimate government of Taiwan, under the premise given by the SMIC TSMC 17.
8.9 billion shares, accounting for SMIC October 31, 2009 8% of the issued share capital, with the Executive Yuan to the other side can open up the domestic equity participation fab, SMIC TSMC will become the third largest shareholder. UMC is the Board of Directors in April last year to 285 million U.S. dollars to be made (approximately NTD 9.55 billion yuan) into Suzhou and ships, in order to activate the global layout, by the end of March this year for the period.
Industry and questioned the shares in the Government said the open part of the mainland wafer fabs, is it 8-inch plant stake, or 12-inch plants, hoping to clear norms