The lighting market has officially taken off, and competition among global LED manufacturers is surging. The dynamics are unprecedented in recent years. American company CREE recently announced an investment of US$83 million in Lextar and a 13% stake in Lextar. This news shocked the Asian LED industry. The lineup of domestic first-tier manufacturers that can enter the international market is getting stronger and stronger. After being squeezed by the rapid rise of mainland manufacturers, the trend is gradually favorable to domestic first-tier LED manufacturers, and the industry will also accelerate reshuffling.
Taiwan factory breaks its bones and becomes courageous
In just two months, CREE, a major American lighting brand, decided to acquire Lextar’s mid-power wafer production capacity with a large sum of cash. Whether it is for the lighting layout of its own group, or whether the two parties have further cooperation plans in the future, Lextar's ranking among Asian manufacturers, and Queping's selection as an important partner of CREE is enough to prove that the Taiwanese manufacturer's strength has reached an international level and is enough to compete in the International Cup in the next round of LED lighting business war.
CREE dominates the U.S. LED market and is optimistic about the global lighting market. CREE has been making continuous mergers and acquisitions in recent years. It even entered the Chinese market with its brand many years ago. Judging from its high penetration into China, the mainland factories that have risen rapidly in recent years are bound to be on CREE's cooperation list.
Longda Chairman Su Fengzheng bluntly pointed out that a large international manufacturer like CREE would not rule out having contacts with many Asian companies for cooperation. However, Longda’s one-stop operation model is similar to CREE’s operating structure. In addition, CREE has certain requirements for product quality. The cooperation process between CREE and Longda was completed naturally.
Regarding such cooperation between the two parties, Su Fengzheng also said sincerely that Taiwanese manufacturers have world-class competitiveness, and he sincerely hopes that Taiwanese manufacturers will not lose to mainland China in the LED field. If everyone makes the best of their competitiveness, this will definitely be positive for the development of the domestic LED industry.
Indeed, domestic LED factories have been conquering the world with bare hands without domestic demand and policy support. In 2010, the rapid rise of mainland factories with government subsidies disrupted the development of the global LED market. It also caused the Taiwanese factory, which had the largest mass production capacity in the world at that time, to lose almost both talent and technology, and its operations were completely damaged.
ANNA