Mulinsen has already "footed 4 ships"

A few days ago, Mu Linsen and Huacan Optoelectronics' strategic agreement worth 1.5 billion brushed the eyes of the LED industry. The agreement stipulates that Mulinsen will preferentially purchase Huacan Optoelectronics products under the same conditions. The value of LED chip products that Mulinsen purchases from Huacan Optoelectronics in the next three years will not be less than RMB 1.5 billion; Huacan Optoelectronics will operate under the same conditions. Priority will be given to the supply of Mulinsen.

The industry experts familiar with Mu Linsen's relationship with Jingyuan Optoelectronics couldn't help but feel puzzled about Mu Linsen's and Hua Can's hand-holding. Will Mori Lin's friendship boat with Jing Yuan be overturned?

However, you only know the wafer, Huacan, forget about the development of crystal it? Didn’t you know that Mulinsen’s “Liu Qing” in the LED substrate town of Jiangxi?

Taiwan: Epistar

At the end of last year, the board of directors of Mulinsen decided to promote the general manager of the marketing department, Lin Jiliang, as the executive general manager. Lin Jiliang became the first Taiwanese listed company in mainland China to be appointed as general manager. Rumors that Lin Jiliang is not a LED technology background, but graduated from the Chinese Department, early in the Eslite Bookstore as a plan, and later served in Taiwan LED packaging plant in East Bay, and in 2000 was East Bay sent to the mainland as director. Later, Lin Jiliang started his own business. During the period, he sold agents of the Taiwanese LED chip factory and Guanglei's chip to Mulinsen. Lin Jiliang was taken over by Lin Qinghuan, chairman of Mulinsen in 2011. During this period, the cooperation relationship between Jingdian and Mulinsen quickly warmed up. The two sides entered the honeymoon period, and Jingyuan became the largest supplier of Mulinsen's upstream chip.

In 2015, with the continuous concentration of Taiwanese chip manufacturers, Taiwan’s packaging giant Yiguang announced the adoption of the mainland Sanan optoelectronics chip for cost considerations and supplier diversification considerations. Although it was subsequently stated that only a small part was adopted, but This move will inevitably cause the same wafers as the Taiwanese core, so that the wafer will pay more attention to the mainland packaging giant Mulinsen's "strategic partner" status, and thus the relationship between wafer and Mulinsen more closely. At the end of last year, Taiwan's New Century Optoelectronics had a case of leaking secrets from insiders, claiming that the LED chip patent technology was leaked to the mainland's Sanan Optoelectronics by internal personnel and that Sanan Optoelectronics, which had been dominating the side leakage, was disdainfully responding. However, this incident and multiple events showed that , An "encounter" Sanan Optoelectronics camp seems to have a clue.

It is almost impossible for the friendship boat of M. Linsen and Jingyuan to overturn. As an upstream chip manufacturer, Jingyuan wants to maintain its position in the competition with Sanan Optoelectronics and has to rely on Mulinsen's huge share in the packaging market. Recently, Mulinsen and Jingyuan are working closely together to implement the two projects of a joint venture plant in India and an LED filament lamp. Mulinsen hopes to use the market experience of wafers to promote an internationalization strategy, and Keman hopes to open up overseas markets and release production capacity to get rid of the current predicament; Mulinsen hopes to use the LED filament lamp technology of Kevin to dominate the market, and Kevin also hopes to The patented technology translates into greater commercial interest and creates a new path for revenue.

However, it is worth considering whether the wafer and Mulinsen are better than Jinjian. The industry once rumors that Mulinsen purchased the equity of the wafer and both parties denied it. However, there is no wind and no wave, and perhaps this incident had had "sparks", but the two sides did not come together later. Obviously, Jinglin has his own understanding of Mu Linsen.

Fujian: Development Crystal

On the evening of September 10 last year, the news that Mulinsen took shares in the development of crystals had also left the industry with an uproar. Participating in the development of shares is the first acquisition of Mulinsen after its listing last year. Less than half a year later, Mulinsen’s strength was to invest in the acquisition of chain fists, first bidding for OSRAM’s traditional lighting business and acquiring the ultra-era light source recently. Grab the LED filament lamp market.

According to the statistics, Jingjing is a core platform for China Electronics Group to build an ultra-billion LED industry chain, and is one of the LED industry leaders confirmed by the Fujian Provincial Government. Its business scope covers LED epitaxial wafers, chips, packaging modules, and lighting applications. Industrial chain links.

Mu Linsen shares in the development of crystal, first, to see its relationship with the wafer (chip is one of the shareholders of the development of crystal), followed by a number of new processes on the need for chip supplier support and cooperation, but also to prevent the emergence of the chip The supply is not timely.

Mulinsen’s focus on developing crystals is more important because the development of Crystal Holdings’ subsidiary Pwirray acquired 100% equity of BridgeLux in the United States for US$130 million, thereby gaining Puri’s patent rights. As one of the top 10 LED companies in the world, Mullinson’s many products are also sold overseas. For Mulinsen, an international strategy, the patent layout is an increasingly important part. It is precisely because of the development of crystal acquisition of Puri, the importance of the latter's patent in the United States to Mulinsen is self-evident.

Hubei: Huacan Optoelectronics

The news of Mulinsen and Huacan's worth of 1.5 billion agreement came from the Huacan announcement. For this 1.5 billion, Huacan is naturally happy. Because, at the beginning of this year, Huacan disclosed that its net profit in 2015 was expected to have a loss of RMB 9200-97 million, while the net profit for the same period in 2014 was RMB 90.91 million. Hua Can said that although the production capacity and sales scale have increased substantially compared with the same period of last year, the company’s economies of scale have been gradually reflected and the cost has been reduced. However, the market competition has led to a sharp drop in product prices and a narrow margin in gross profit.

And why did Woodlinson choose Huacan? The top few domestic LED chip manufacturers include Sanan Optoelectronics, BDO Runda, Tongfang, and Huacan. Given the current friendship between Mu Linsen and Jing Yuan, Sanan Optoelectronics need not say anything. BDO Runda has NVC Lighting as an extension of its own industry chain, and there is not much intersection with Mulinsen. The back side of the same side is big and does not work well. Hua Can is most in need of charity at this time.

Huacan, with 11 years of experience in LED chip R&D, is not unusual and has a number of small and medium packaging plant customers. According to the agreement, Huacan will give priority to safeguarding the supply of Mulinsen under the same conditions and form a quasi-strategic partnership with Mulinsen. It is a more solid and reliable supplier for Mulinsen and a solution to Huacan. Continue to worry about expanding production capacity in Yiwu

Jiangxi: Jingneng Optoelectronics

Although there is currently no news that Mulinsen has direct cooperation with Jingneng Optoelectronics, Mulinsen is an active responder to the Jiangxi Optical Valley project. At the end of last year, Jiangxi Province issued the "Implementation Plan for Establishing Nanchang Optics Valley to Build a Jiangxi LED Industrial Base" to create an optical valley in Nanchang and construct a LED industrial base in Jiangxi. Jiangxi Province will vigorously support the development of the entire industry chain of silicon-based LED technology, and will adopt the mode of silicon-based LED technology cooperation for industrial development, and promote the radiation of silicon-based LED technology.

The key projects of the above projects show that the key projects in the upstream chip area include Jingneng Optoelectronics (Chunfeng Clean Energy Subsidiary) annual output of 1 billion silicon-based violet-violet chip production line projects (Nanchang); the midstream packaging area includes Jiangxi Linlinsen Lighting Co., Ltd. The company (Xianlin Mori Subcompany) has an annual output of 100 billion LED light-emitting diode projects (Jian); downstream applications include the annual output of 200 million sets of LED energy-efficient lighting products project (Xinyu) by Mulinsen Optoelectronics Technology Co., Ltd. (Mulinsen Mori) The supporting field also includes an annual output of 8 million square meters of LED lighting circuit board project (Xinyu) by Jiangxi Mulinsen Optoelectronics Technology Co., Ltd.

Although silicon-based LED technology has not yet been industrialized on a large scale, this technology, as China’s completely autonomous intellectual property, won the only first prize of the National Technology Award and was strongly supported by national and provincial-level political forces; As an emerging technology, this technology is also recognized by the industry. Therefore, for the silicon-substrate LED technology, Mulinsen can participate in the industrial cluster built by Jiangxi Province through its investment in Jiangxi and reserve a potential competitive technological route option.

Mulinsen: Two hands control the market

As the capacity expansion continues to cause excess, LED chip companies compete fiercely and seize each other's markets. In addition, the growth in demand for LED lighting has slowed down significantly, and competition in the industry has continued to intensify. As a result, the pressure on the most upstream chip segment of the LED lighting industry chain is increasing.

Under such a situation, packaging company Mulinsen has become a target for LED chip companies to compete. However, looking at Mullinson's multi-faceted arrangement of LED chip companies, it can be predicted that Mulinsen will have the initiative to lower the price of LED chips.

As the industry is well aware, Mulinsen's two hands to manipulate the market are large-scale and price wars. With large-scale reduction of costs, and then quickly occupy the market with price war.

Due to its ability to reduce manufacturing costs through mass production, Mullinson first sold LED bulbs at a very low price of US$1 in 2012 and quickly occupied the market, and in 2014 he officially entered the US and Taiwan lighting markets. At the 2015 China Lighting Forum, Zhou Lihong, general manager of Mulinsen's domestic marketing, declared that with the gradual transparency of technology, the LED lighting packaging industry has gradually entered the era of capital and scale, and it is imperative to increase industrial concentration.

In October last year, Mulinsen announced plans for non-public issuance of stocks. The net proceeds to be raised will not exceed 2.316 billion yuan, respectively for "Siu Lam's SMDLED packaging technology reform project," "Jian SMD LED packaging first-phase construction projects," and "Xinyu LED applications. Lighting Phase I Project." According to reports, at present, Mulinsen has completed the construction of the first-phase plant in Xinyu, Jiangxi, and some of them have been put into use. Jiangxi Ji'an Phase I plant is under construction. Mulinsen's current annual production capacity is about 203.5 billion LAMP/SMD per year. Mulinsen said that it will speed up the construction of two production bases in Jiangxi Xinyu and Ji'an, and increase the market share of products.

It is not only the expansion of production capacity at the domestic production base, but also the internationalization strategy. Mulinsen optimistic about the global LED industry, believes that due to the energy-saving features of LED products, product cost reduction and the compatibility of existing lighting fixtures, the use of global LED is expected to show rapid growth. Mulinsen’s Indian subsidiary is currently supplying packaged components to Indian local manufacturers. The products have also entered Southeast Asia, the Middle East, Africa, Latin America, the United States, Europe and other countries and regions. It is estimated that the Indian government’s lighting quotation will have a market size of 670 million SMDLEDs in a single month, and it is expected to reach 10-20 billion in a single month after 2 years. Mulinsen’s goal is to reach a single month out within 2-3 years. The scale of goods is 670 million pieces.

Mori Linsen was in control of the bid for OSRAM and repeatedly described the future blueprint to the media. Once this matter is confirmed, Mulinsen will be a new round of capacity expansion.

Mulinsen’s frequent actions in the LED chip field confirms his plans for capacity expansion. This may be only the first step for Mulinsen to create the world's top three LED industry ambitions.

For Mulinsen, people in the industry appreciate it and hate it. Whether it is ambiguity or devaluation, the result of market competition shows that Mulinsen is a legend in the LED market in recent years. And, from the current point of view, the development trend of Mulinsen seems to have been irresistible.