Mergers and acquisitions will become a new trend in the LED industry

In the past two years, the plight of overcapacity in the LED industry, blind production, and a vicious price war not only has not been improved, but has intensified. In 2011, Shenzhen Duo Duoli, Vision Optoelectronics, and Zhongshan Kabang went bankrupt. In 2012, Haobo Optoelectronics, Big eye sector optoelectronics and other LED companies have experienced crises, but also make the sluggish LED industry worse, corporate mergers and acquisitions, integration and other phenomena are also common. With the combination of BDO Runda and NVC Lighting, the industry believes that it will accelerate the pace of mergers and acquisitions in the industry.

QinShang Optoelectronic recently issued an announcement that it will issue bonds with a total size of 800 million yuan, of which the first phase will raise 400 million yuan. According to Wei Li, Senior Vice President of Weiguang Semiconductor, the funds will be mainly used to improve the country's overall distribution, timely mergers and acquisitions and the development of EMC (contract energy management) new business. “The company is currently looking for suitable shopping items from companies that have complementary properties in the LED industry chain and Qinshang Optoelectronics. The items include large companies and SMEs.”

In addition, Zheng Tiemin, chairman of Shandong Inspur Huaguang Optoelectronics Co., Ltd., also stated that the focus of Inspur Huaguang's development is mainly on the upstream of the LED industry. Currently, there are plans for mergers and acquisitions to integrate midstream packaging companies.

“The LED industry has high cash and technical requirements for companies. With the introduction of a series of LED support policies this year and the gradual implementation, some companies that have won bids but lack sufficient funds or technology to complete projects will seek to introduce partners, so the current industry The phenomenon of integration.” Wei Li believes that due to the intense competition in the LED industry and the lack of competitiveness to live, it is expected that the industry's strong alliances will be the general trend of mergers and acquisitions among companies.