The pace of integration in the LED industry is accelerating and strengthening the new trend of mergers or acquisitions

In the past two years, the LED industry's overcapacity, blind production, and the vicious price war have not only been delayed, but have become more and more serious. In 2011, Shenzhen Duo Duo, Vision Optoelectronics, and Zhongshan Kabang have closed down. In 2012, Haobo Optoelectronics, The LED enterprise crisis such as Big Eye Optoelectronics is frequent, which makes the LED industry in the recession worse. The phenomenon of mergers and acquisitions and integration is also common. With the combination of Dehao Runda and NVC Lighting, the industry believes that it will accelerate the pace of M&A integration in the industry.

Qinshang Optoelectronics recently announced that it will issue bonds with a total size of 800 million yuan, of which the first phase will raise 400 million yuan. Wei Li Optoelectronics Secretary-General Wei Li revealed that this fund will be mainly used to improve the national layout, timely mergers and acquisitions and expansion of EMC (contract energy management) new business. “The company is currently looking for suitable acquisitions from companies that have complementary capabilities to the Qinshang Optoelectronics business in the LED industry chain, including large companies and SMEs.”

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

"The LED industry has high requirements for cash and technology for enterprises. With the introduction of a series of LED support policies in the country this year and gradually implemented, some companies that have won the bid but lack sufficient funds or technology to complete the project will seek to introduce partners, so the current industry is big. The phenomenon of integration." Weili believes that because the LED industry is fiercely competitive and unable to survive without competition, it is expected that the strong alliance in the future will be the general trend of mergers and acquisitions among enterprises.

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