Cross-strait cooperation to develop LED industry standards

“The mainland market is a good haven.” On the last day of 2008, Fan Bangyang, executive director of Hong Kong Zhen Mingli Holdings Co., Ltd. (01868.HK, hereinafter referred to as “Zhen Mingli”), told reporters at his headquarters in Heshan, Jiangmen.

As one of the earliest Taiwanese businessmen to develop in Guangdong, Fan Bangyang has spent 20 Spring and Autumn in Heshan, from 38-year-old youth to 58-year-old middle-aged. Zhen Mingli, who started with decorative lights, entered the LED (light-emitting diode) industry in 1998 and has become the world's largest LED lighting factory.

“In 2008, it was originally expected to increase by 30% compared with 2007. However, after the financial turmoil, the final production and sales scale in 2008 was only the same as in 2007, and some of the production capacity was idle. In 2009, it was not optimistic, and the output value is expected to be slightly less than that in 2008. Fan Bangyang told reporters.

LEDs will be one of the alternatives to incandescent lamps because they are more than half the energy savings of incandescent lamps. Although it is more environmentally friendly, its cost is still 8 to 10 times that of energy-saving lamps. "The key now is how to reduce costs." Fan Bangyang said.

In fact, Fan Bangyang hopes that the LED lights after the cost reduction can quickly expand the domestic sales of the market, which is currently 90% of the products. Only 10% of the domestic sales, he hopes that the proportion of domestic sales can rise to 50%.

And how to reduce costs? The really bright way is to "take all" up and down. When entering the LED field ten years ago, Zhen Mingli mainly made downstream products such as LED decorative lights. Six years ago, it began to do its own LED packaging. In 2009, it went further upstream, and even the chips did it themselves.

The reporter saw in the new chip factory of Zhen Mingli that the plant has entered the trial production stage. Fan Bangyang said that Zhen Mingli's chip purchase amounted to 20 million US dollars a year, so it is necessary to invest 40 million US dollars to launch its own chip factory. The chip factory put into production in 2009 can produce 400 million chips a month.

At present, Zhen Mingli is the only LED production plant in the world that realizes vertical integration of upstream and downstream in the same plant. It can save 40% of the chip cost by self-made chips, which can save about 10%~15% of the cost of LED terminal products. The international lighting manufacturers such as Philips, Osram, and Cree are all integrated through LEDs to achieve upstream and downstream LED integration.

More importantly, Zhen Mingli's rapid growth has benefited from the integration of resources from the Mainland, Hong Kong and Taiwan. Its factories are on the mainland, listed in Hong Kong, and the boss and technical backbone are from Taiwan. In order to launch the chip project, Zhen Mingli dug chip expert Ye Guoguang from Taiwan and appointed him as production director; Zhen Mingli, assistant to the president of Zhen Mingli, also came from Taiwan, specializing in heat dissipation technology. Fan Bangyang told reporters that there are 20 to 30 true Mingli, such as Ye Guoguang and Wang Chuanhan, who are from Taiwan.

"Currently cross-strait cooperation is the best time." Fan Bangyang asserted that after the "three links" across the Taiwan Straits, Taiwan's talents and technology, together with the mainland's city tastes land and labor, believe that LED can be cultivated into a large industry in the mainland, and the world The financial crisis will further accelerate the pace of cross-strait cooperation.

Cross-strait LED technology cooperation "standard first"

The cooperation between the two sides of the LED industry has been carried out on a larger scale. The "4th Cross-Strait Economic and Trade Cultural Forum" held on December 21, 2008 proposed to "deepen cross-strait industrial cooperation," including increasing cooperation between the two sides in the field of LED lighting (note: also known as "semiconductor lighting"). Strengthen cooperation between the two sides of the strait to jointly formulate industrial technical standards such as electronic information.

At the "2008 Guangdong-Taiwan Optoelectronic Industry Cooperation and Exchange Conference" held in Zhaoqing, Guangdong on December 29, 2008, how to promote the cooperation of the LED industry across the Taiwan Strait has become one of the hot topics. It is understood that Guangdong currently accounts for 60% to 70% of the national LED output value.

Wu Xiangrui, general manager of the Optoelectronics Business Unit of Taiwan Optoelectronics Technology Co., Ltd. pointed out that the top five manufacturers in Europe and the United States have issued mutual patents for LED phosphors. "This 'protective umbrella' must be patented to break through. This is something that the two sides need to discuss together."

Wu Xiangrui also said that there is a huge market in mainland China, and the two sides should promote the synergy of LED lighting standards, including terminology, test methods, life expectancy, and LED street lamp development standards.

"Technical cooperation is the focus of cross-strait optoelectronic industry cooperation. I hope to start from the standard. At present, there are 17 LED standards in Taiwan, and there are only 7 LED standards in the mainland. Therefore, there is a lot of space for cooperation between the two sides of the LED standard." Vice Chairman of Guangdong LED Industry Alliance Gu Dewen, general manager of Shenzhen Jingge Century Semiconductor Co., Ltd. told reporters.

At present, the "Straits Cross-Strait Optoelectronic Industry Alliance" is in the process of preparation and hopes to be formally established in 2009. Goodwin revealed that the alliance was jointly sponsored by Guangdong LED Industry Alliance and Taiwan's six major electronics and information industry associations. Fujian Province's willingness to participate is also high, and may eventually form a mechanism for cooperation between Guangdong, Fujian, Taiwan and Hong Kong. The cross-strait optoelectronic industry standard working group meeting is also scheduled to be held in Fujian in April 2009.

The "cross-strait optoelectronic industry alliance" is also planned to promote the establishment of "cross-strait optoelectronic cooperative R&D fund". The fund will encourage Taiwanese companies to research and develop in the mainland and reward industrial upgrading, so that more Taiwanese optoelectronic technology talents can be attracted to the mainland. .

LED street lights have a market of 5 billion yuan a year

"The mainland's market tastes manufacturing" + "Taiwan's technology and talents" is considered to be the best mode for cross-strait optoelectronic industry cooperation.

Zhang Qingwen, director of the Tuoba Industrial Research Institute, described the bright prospects of the mainland LED market in the "2008 Guangdong-Taiwan Optoelectronic Industry Cooperation and Exchange Conference". According to incomplete statistics, the road inventory of urban roads in mainland China is about 28 million, growing annually. There are about 2 million baht, each of which requires about 100 to 200 LEDs, and the price is about 3,500 to 5,000 yuan. If 70% of the newly added street lamps use LEDs, the market for Continental LED street lamps will be about 5 billion yuan per year. .

The 2010 Shanghai World Expo will use LED light sources in landscape lighting and night lighting. The power consumption is only 1/10 of the current, and fully reflects the charm of lighting technology and art. The 2010 Guangzhou Asian Games and the 2011 Shenzhen Universiade will also drive demand in the Chinese mainland LED market.

Wu Zhaolin, chairman of the Association of Lighting and Lighting Industry in Taiwan, also pointed out that the average annual growth rate of white light LED general lighting application is 20%, and the growth rate in the next five years is 35%~40%. It is estimated that the output value of white LED lighting in 2015 will be about 650 billion yen. (about 47.3 billion yuan), "The mainland is already the world's largest single market for LED lighting."

Wu Zhaolin believes that Taiwan currently has the world's largest LED output and has an excellent industrial supply chain. The mainland has the world's largest LED market and excellent mass production capacity. Cross-strait industrial cooperation can create the world's most competitive LED supplier. "In short, strengthen cross-strait LED production, learning, research and exchange, and create a win-win situation.

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