LED light industrial has been the focus in people’s life with rapid growth.
In this case, industry consolidation has become one of the hottest topics of the current phase of the LED industry.
Generally speaking, the way of industry consolidation can be roughly divided into vertical integration (mergers and acquisitions, equity participation or policy Union to create vertical industry chain from upstream to downstream) and horizontal integration (ie integration in the enterprise of the industrial chain of the same level) in two ways. At the current stage of development of LED industry, vertical integration seems to be more international. Epistar Corporation (hereinafter referred to as “Epistar) adhere to the level of integration of the main development. We can get a lot of experience. Epistar Chairman had a interview with magazine and Li Bingjie told us that he will explore the integration of art in the LED lights chip industry in the future.
The path of the horizontal integration of OEM
Semiconductor lighting: Recently, Epistar consolidation have sprare no efforts to make great progress in the industry. Jingke have become the important news in the LED industry. The Epistar have made some successful acquisition with M & A cases the element arsenic, Quan, Lian Yong, and a number of epitaxial silicon plant. But this also can be seen a phenomenon, that is, strategy is concentrated in the horizontal level, mergers and acquisitions of enterprises are the main epitaxial silicon plant. Why the Epistar take such an integration strategy?
Li Bingjie: As you said, all these years , the strategy focused largely on the level of integration. M & A is not the direction of vertical integration, although some vertical mergers and acquisitions is a shortcut to the future to enter the manufacturing system. The reason to do it is that it worked closely related to Taiwan’s development environment. Taiwan’s LED industry is rooted in a manufacturing environment of Taiwan’s electronic industry.It is the same as the characteristics of its development and other IT industry in Taiwan, emphasising on how to reduce the costs effectively. The point to reduce the cost for enterprise is to accomplish industrial chain segments.