Sanan Optoelectronics PK Crystal Photoelectricity who is a LED chip

As the “one brother” of the mainland LED industry, Sanan Optoelectronics has been plagued by the industry. It mainly believes that it receives too much government subsidies and relies on government funds to blindly expand production capacity, resulting in overcapacity and affecting the entire industrial chain. Ecological environment. Even some people ridicule, Sanan is just eating dry food, giving me so many government subsidies, I can do better.

May wish to compare Sanan Optoelectronics to Jingyuan Optoelectronics, Sanan PK Crystals, and see if Sanan is eating dry rice? If you abandon the hatred of the enemy, and remove the "red eye disease", can the strategy of the "Sanan Empire" make you stunned?

Profit PK

Sanan: From the Sanan 2010-2015 calendar year report, the government subsidies received by Sanan increased year by year, but the net profit also increased year by year. The proportion of government subsidies to net profit decreased, and remained at 35 in the past three years. %. This shows that Sanan has gradually matured under the support of the government for many years, and its profitability has grown steadily.

However, the value of the government subsidy in the Sanan Annual Report is open to question. Sanan actually receives the government's funds more than the above figures because: First, the government grant referred to in the annual report does not include the company's normal business operations, which is closely related to the country. The government stipulates that government subsidies will continue to be enjoyed in a fixed or quantitative manner according to certain standards. Second, in the past two years, direct government subsidies are gradually being converted into state-owned assets.

In June 2015, the National Industry Fund acquired 9.07% of Sanan Optoelectronics held by Sanan Group, becoming the second largest shareholder of Sanan Optoelectronics, and successively implemented several capital increase or borrowings for Sanan Optoelectronics.

Jingyuan: The net loss after tax in 2015 was NT$3.018 billion (approximately RMB 606 million). The annual loss rate was as high as 13.76%, and the average gross profit margin fell sharply to 0.48%.

Background PK

Sanan: As the absolute leader of the LED chip industry in the Mainland, Sanan is a company that wants to close down the country and will not let it go bankrupt. The country's annual subsidies are hundreds of millions. Sanan is one of the few LED companies in China that can compete with foreign countries and Taiwan. Without Sanan, the chip industry upstream of LED has the risk of being completely controlled by foreign capital.

However, government subsidies and administrative interventions are not a healthy model. Sanan has the ability to make profits. Therefore, direct government subsidies are gradually being converted into state-owned assets.

At present, in Sanan's shareholding structure, Sanan Electronics is the first shareholder, Sanan Group is the third shareholder, with a total of 36.58% equity; National Industrial Fund is ranked second with 11.3% equity; other major shareholders also include State-owned financial institutions such as securities, Huijin, and social security funds totaled 10.7% of the shares, and the above state-owned assets accounted for 17% of the shares.

Jingyuan: The government's preferential treatment by mainland LED companies often makes Taiwan's Jingyuan feel unfair. When bidding for Philips Lumileds, Li Yuanjie, chairman of Jingyuan, had repeatedly hoped to get the support of the Taiwanese government, but he did not receive a goodwill response. Finally, the Go scale of the mainland's lead was won, and the Jingyuan could only hope to sigh.

Although in the end, because the US government blocked the Lumileds bid, the strong Austrian aid for the lack of industrial policy is the biggest weakness of the mainland competitors.

However, the wafer also has its own background. At that time, Li Bingjie, a professional in petrochemical industry, was transferred to the field of optoelectronic semiconductors at the Taiwan Industrial Technology Research Institute. In 1996, he founded Optoelectronics with the technical background of the Industrial Technology Research Institute.

In April, Taiwan’s deputy leader Wu Dunyi appeared in the “2016 Taiwan International Lighting Technology Exhibition” and supported the Taiwan LED industry. Earlier in March, Taiwan’s candidate, Cai Ying, proposed the “national team strategy” for mainland semiconductor “red supply chain”, saying that Taiwan should form a “national team” to resist the mainland and intend to set up a “national level” investment bank as a backing. . This information will undoubtedly bring a lot of confidence to the crystal unit.

However, it should be pointed out that there is no such thing as a "national team strategy" in Taiwan. In addition, politicians are good at creating momentum, and the LED industry needs more work. Whether it is the crystal or the Sanan, if there is too much political color, I am afraid it will be affected by it.

Allies PK

Sanan: The price of raw materials for LED chips at the high end of the industrial chain has changed greatly. Jingyuan Optoelectronics has guaranteed a stable upstream supply system for Sanan. Sanan also once sought to hold Taiwan's Yuanyuan. Although the cooperation was blocked because of the obstruction of the Taiwan authorities, the combination of Yuanyuan and Jingyuan dramatically made Sanan become one of the shareholders of Jingdian. Future potential cooperation has laid the groundwork.

Sanan holds 100% equity of Luminus and more than 150 patents. Luminus is an important channel for Sanan to develop overseas. In the middle reaches, Sanan has a chip purchase agreement with Guoxing Optoelectronics, Zhaochi Co., and Jufei Optoelectronics. Downstream, Sanan has joint ventures with Weiwei and Sunlight.

In addition, Anrui Optoelectronics, a joint venture between Sanan and Chery Automobile, is dedicated to LED packaging and applications, and automotive lighting. Anrui Optoelectronics and Beiqi Yinxiang have an automotive lighting product supply agreement. Sanan Optoelectronics and military organization Shanghai Aerospace Electronics all chip procurement agreement. Sanan Integration and Nisse Solar are dedicated to the integrated circuit and photovoltaic industries.

Jingyuan: Mulinsen is its largest customer. It is said that 98% of the chips in the Jingyuan Xiamen factory are supplied to Mulinsen; the two sides are also cooperating with the Indian branch and the LED filament lamp project. Jingyuan has signed a patent cross-licensing agreement with Cree, Toyota and Philips. Jingyuan owns Taiwan's second largest LED chip factory, Yuanyuan, as an independent subsidiary. Taiwan Guangguang Optoelectronics is also important for the status of the wafer.

Jingyuan also holds Taiwan Semiconductor Solid State Lighting (Yuanxin Optoelectronics). Xiamen Lidaxin obtained the patent for the filament authorized by the crystal. Jingyuan has set up a number of subsidiaries in the mainland and holds shares in a number of LED companies, forming a full industrial chain layout, including holding Beijing Zhongke Jingdian, Guangdong Jingke Electronics and its founder Hong Kong Microcrystalline, Zhongshan Jingyang Lighting , Huizhou Huarui Optoelectronics and other companies' equity.

More special is Taiwan's billion light and round. Taiwan's first packaging manufacturer, Everlight, has been using the chip of the wafer. In 2015, it used Sanan's chip for the first time due to cost-effective consideration. However, it also said that only low-end chips are purchased from the mainland, and the main chip source is still Epistar.

Yiguang was an investor at the beginning of the founding of Jingyuan. In the case of the merger of Yuanyuan and Yuanyuan, Yiguang held a 1.8% stake in Jingyuan. Sanan was listed as the second shareholder of Jingyuan with a 2.8% stake in the company, and in this situation, the wafer and Sanan coexisted.

Industry PK

Sanan: About 170 MOCVDs have been fully produced; plans to increase 100 units have reached 53 units and are gradually releasing production capacity. Sanan has more than 880 patents. In the upstream, Sanan focuses on stabilizing the supply of raw materials, breaking through patent barriers and controlling the risk of fluctuations. In the middle reaches, Sanan set out to carry out strategic cooperation with other LED companies to form economies of scale and reduce transaction costs.

Downstream, Sanan focuses on directly or indirectly grabbing the market and enhancing market control. It is rumored that Sanan has repeatedly shown to Mu Linsen, but he has not cooperated. In 2014, Sanan signed a cooperation agreement with Guoxing Optoelectronics, the second largest packaging factory in China, marking the completion of Sanan's basic layout in the traditional LED industry chain.

At present, Sanan is actively transforming. The integrated circuit industry has become the focus of Sanan. Sanan Integration has completed the first phase of trial production; with the support of the second largest shareholder, the National Industrial Fund, the China Development Bank’s 20 billion financing, Huaxin’s investment of 2.5 billion US dollars, and not long ago The establishment of the Anxin Industry Fund (the first phase of 7.5 billion) and other advantages, Sanan IC's national strategic position even exceeds the Ziguang shares.

Sanan also cooperated with the Shanghai Aerospace Electronics Institute, a military organization, to develop various integrated circuit applications such as visible light communication and vehicle networking. In addition, Sanan is committed to the photovoltaic industry, cooperating with Chery Automobile, Beiqi Yinxiang, and the Chinese Academy of Sciences, and so on.

Wafer: When combining the roundness, there are 385 MOCVD wafers in the wafer itself, and 103 wafers are rounded; not long ago, South Asia Optoelectronics exited the LED epitaxial process, and 10-13 MOCVDs were transferred to the wafers, totaling about 500 units. Jingyuan ranks the second largest blue LED factory in the world and the world's largest infrared LED factory.

At the beginning of this year, Jingyuan sold its Zhuke Minhang plant, and then started selective production cuts. This year's production estimate is reduced by 25%. The wafer has more than 2,500 patents. Many LED manufacturers such as Mulinsen and Yiguang believe that the performance and technology of the chip are better than Sanan, especially in the middle and high-end applications. At present, Jingyuan is committed to LED filament lamps, quaternary vehicle products, infrared LEDs, UVLEDs, etc., as well as actively exploring overseas markets.

in conclusion

Sanan did not live up to the support of the state. Compared with the crystal, Sanan still has a small gap. Sanan still needs to continue to grow and cannot be separated from the support of the National Industrial Fund.

The definition of success is different, and Sanan and Jingyuan are leading the way. In general, Sanan focuses on horizontal development, and the stalls are large; the wafers focus on vertical development and the draught is deep.

As far as the author is concerned, Sanan and Jingyuan are not as good as their PK. At present, Sanan is the second shareholder of Jingyuan. The two form a coexistence situation and there is room for cooperation. Only the right opportunity is needed. If the two leading companies of Sanan and Jingyuan work together, the major LED industry bases in the Mainland will be linked to Taiwan, which will bring the best prospects to the world LED industry.

The two "empires" of Sanan and Jingyuan include the business of most LED companies. Most LED companies can find patterns in their own fields in Sanan or Jingyuan, and learn from their experience.

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