According to Granada LLP President Ishida Fumiko, in addition to Samsung and Lucky Gold, vertical integration of Korean-based companies such as Kumho Motors and Woore Group has been put in place, and will compete with the big makers in the future.
Samsung and Lucky have actively launched vertical integration of their LED business in the upper, middle and lower reaches of the market. In recent years, they have been more aggressively purchasing organometallic vapor phase epitaxy (MOCVD) machines, which have resulted in a significant increase in the status of the global LED market. Leap forward. However, nowadays, LED patent technology is mainly controlled by OSRAM Opto Semiconductors, Philips Lumileds, Cree, and Nichia. Therefore, GranadaLLP President Yoshida said that although Samsung and Lejin are investing heavily to try to catch up with Europe, the United States, Japan, and Taiwan in the LED field, Samsung’s customization is too many challenges that lead to poor profitability. The overwhelming majority of patented technologies in Europe, the United States, and Japan, as well as the aggressive offensives of production costs in Taiwan and mainland China, are likely to become the subject of the Korean industry’s efforts to gain greater market share.
Focusing on the burgeoning demand for LED lighting, and the relatively late start of the market, the first battle of Korean manufacturers was directed at Japan. According to Ishida's analysis, Korea’s domestic demand market is small, which has led South Korean LED companies to target the main market overseas. Considering that no unified LED lighting standard has been released internationally at this stage, the Korean LED industry will target the market with stricter requirements on product quality. Harsh Japan, and after importing modules into Japan, they will assemble them in Japan to create Japan-made names to rapidly expand their market penetration in Japan. As for the Chinese mainland market, given the high sensitivity of consumers to the price of lighting products, the initial market strategy is similar to the niche market in Japan.
After the advent of LED light sources, the ecology of the lighting industry in Korea was changed. In the past, the South Korean government had restricted large-scale enterprises from entering the lighting market to protect domestic SMEs. However, since LED lighting was attributed to the semiconductor industry, Dachang won the admission ticket. With the huge resources of the big manufacturers, LED technology can be rapidly innovated and there is an opportunity to enter the international arena.
Han Plant's Vertical Integration Strategy Breaks Out for LED Pie
Large manufacturers such as Samsung and LG competed to complete the vertical integration of the supply chain through expansion and acquisition. They have been catching up in the LED market and have been unaware of LED-related suppliers in Taiwan and Japan. The enemies, but the future is bound to face Europe, the United States, Japan LED manufacturers of patented technology, as well as Taiwan, China mainland industry prices violent offensive, Korean manufacturers how to break through, will be the focus of follow-up industry circles.