LED industry: creating another extreme in Yiwu's economy

At the first World Business Conference, which just came to a close, the two LED projects that were signed as major investment projects were very eye-catching. The industry's heavyweight LED companies Huacan Optoelectronics and Ruifeng Optoelectronics will all return to Yiwu this year, which marks the initial realization of the LED industry chain covering in Yiwu Industrial Park, and has taken the goal of “building an internationally renowned LED industry base”. A solid step.

The LED industry is divided into three major links in the middle and lower reaches. The upstream links include semiconductor substrate materials (sapphire, etc.), epitaxial wafers and chips. They are capital and technology intensive. Currently, they are mainly controlled by leading foreign manufacturers. There are only a few manufacturers in China. enter. The midstream of the LED is mainly packaged and tested. The equipment and manufacturing process are highly standardized. The investment scale of the manufacturer is generally small and the technical requirements are low. Therefore, the number of manufacturers in the packaging field is large, and the performance of the company is directly affected by the industry boom. The downstream links of LEDs mainly include application segments such as lighting, backlighting and display. The market demand is huge, but the requirements for brands and channels are relatively high, and a large number of domestic manufacturers enter this field.

Huacan Optoelectronic Technology R&D Team

Before the establishment of Huacan and other enterprises, the original LED enterprises in Yiwu stayed in the downstream links, but they could only be described as “small play”. Although LED lighting products sold in the market such as festive decorative lighting and small household appliances have certain price advantages, but the scientific and technological content is limited, it is difficult to truly have a rigid market competitiveness. In addition, the original LED lighting products processing enterprises are loosely distributed, low-level OEM phenomenon is widespread, the industry lacks specialized talents, and the overall level is relatively weak.

In order to change this situation, the Yiwu Industrial Park Management Committee began to focus on the introduction of high-end upstream and midstream enterprises in the LED industry chain. Huacan Optoelectronics and Ruifeng Optoelectronics, which have great strength in the industry, have become the first targets to attract returns. In the past few years, Yiwu Industrial Park has used the preferential investment policy and the investment family card to discuss and promote the return. At the first World Business Conference held on February 13, the investment of 6 billion LED epitaxial, chip and sapphire processing projects and the investment of 2 billion LED expansion and new energy projects officially settled in Yiwu Suxi.

Photoelectric product packaging

Huacan Optoelectronics related person in charge said that Huacan is currently the second largest and the world's fourth largest LED chip manufacturing company in the world, and will continue to strive to expand its leading edge in the LED industry in the next few years. Previously, Huacan Optoelectronics acquired Yunnan Lanjing, which is based on the original intention of stabilizing epitaxial wafers as an important raw material for sapphire substrates. The Huacan Optoelectronics entered the Yiwu Industrial Park, and through the implementation of the sapphire processing project and the LED industry M&A fund, the LED industry chain upstream and downstream and supporting enterprises gathered to enhance the core competitiveness of Huacan Optoelectronics.

The packaging company located in the middle of the LED industry is most valued for its profitability. Ruifeng Optoelectronics is a leader in this respect. According to its 2015 annual results forecast, the company expects to achieve a profit of 32 million yuan - 39 million yuan, an increase of 34.26% - 63.63% over the same period of the previous year. This time Ruifeng Optoelectronics has settled in the form of a wholly-owned subsidiary in Yiwu, which is expected to further reduce costs and improve the overall gross profit margin of the company.

Photoelectric product packaging

The person in charge of the Investment Promotion Bureau of Yiwu Industrial Park Management Committee told the reporter of China Yiwu. The presence of Huacan Optoelectronics and Ruifeng Optoelectronics can be regarded as a shot in the upper and middle reaches of Yiwu's LED industry, especially Huacan's sapphire. The project can be said to fill the gap upstream. The agglomeration effect of LED supporting enterprises brought about by the construction of the industrial chain will be very obvious.

It is reported that Yiwu Industrial Park will contact with more leading optical products companies in the industry in the future, and strive to achieve the LED industry chain structure and expand the LED industry agglomeration while attracting entry. In the near future, the "International Famous LED Industry Cluster Center" will become the brand new identity of Yiwu in the mall and become the "one more pole" of Yiwu's economy.

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