LED lights shine into ordinary people's homes on the eve of the final battle, the industry began to emerge mergers and acquisitions surge. On March 30th, NVC Lighting and Cree signed a strategic cooperation agreement in Shanghai. Yin Yin, executive vice president of NVC Lighting, pointed out that the curtain of led general lighting is about to start, and industry consolidation and mergers and acquisitions are imperative.
Cooperation to complete cross-sectoral complementarities According to reports, NVC and Cree's cooperation is mainly reflected in three aspects: lighting application development, technology exchange and cooperation, and promoting market development.
Cree is a NASDAQ-listed company that provides compound semiconductor materials, epitaxy, chip, package and LED lighting solutions. According to Tang Guoqing, general manager of Cree China Market, Cree LED has technical advantages in terms of brightness, light efficiency, thermal performance, longevity, and reliability. NVC, as the largest energy-saving lamp manufacturer in China, dominates commercial lighting. The cooperation between the two parties will form a model for high-end LED lighting products.
NVC and Cree announced strategic cooperation, apparently want to make up for technical deficiencies. The industry predicts that by 2015, LED lighting will account for 40%-50% of the entire market. LED is a cross-industry product. Both the semiconductor industry and the lighting industry face the problems and opportunities of mutual learning and integration.
The industry mergers and acquisitions turbulent NVC lighting was listed in Hong Kong last May. Yin Yin stated that the funds raised by the IPO will be mainly used for mergers and acquisitions, and the company will better meet the needs of the LED lighting market at home and abroad through the integration of mergers and acquisitions.
He revealed that NVC had also formed a strategic partnership with Taiwan Jingdian. Their target companies for merger and acquisition are mainly divided into two categories: one is a company that has core technology in the LED field, and the other is a company that has a certain channel advantage, especially in overseas mature markets.
In fact, this year, mergers and acquisitions strategy has appeared many times in the LED industry. On January 25 this year, Neo-Neon announced that it had acquired HCI of the United States for a consideration of US$17 million. In addition, Sunshine Lighting also acquired 50% equity of Hangzhou Hanguang Lighting at a consideration of 13.5 million yuan, and obtained a 30.188% stake in LIREN Japan.
The cost-cutting node of the lighting industry highlights the integration of the technology and the channels, both to meet the era of LED general lighting. According to industry sources, according to the current development speed of the LED industry, by the end of this year, the price of LED light sources may drop to US$1 per watt, which is only 20%-50% more expensive than energy-saving lamps. According to the laws of the industry, once this spread is reached, the LED lighting market will expand at an unprecedented rate. In China alone, the replacement rate of energy-saving lamps can reach 10% in the short-term, while the replacement rate in the US and Europe markets is expected to reach 50%.
In response to the sudden enlargement of the LED general lighting market, domestic companies want to speed up the pace of development through cooperation and mergers and acquisitions. According to statistics, there are currently more than 10,000 lighting companies in the Mainland, and the combined share of the top three companies such as NVC, Philips, and Shunde Huaqiang Benbang is only 2.5%. Losing the opportunity of the LED market may well lose the seat in the entire lighting market.
Yin Yin said: "At present, LED is not our source of profits. We hope to strengthen quality and reduce costs through cooperation and mergers and acquisitions. We believe that with the enlargement of the LED market, this will become our source of profit after two to three years."
Cooperation to complete cross-sectoral complementarities According to reports, NVC and Cree's cooperation is mainly reflected in three aspects: lighting application development, technology exchange and cooperation, and promoting market development.
Cree is a NASDAQ-listed company that provides compound semiconductor materials, epitaxy, chip, package and LED lighting solutions. According to Tang Guoqing, general manager of Cree China Market, Cree LED has technical advantages in terms of brightness, light efficiency, thermal performance, longevity, and reliability. NVC, as the largest energy-saving lamp manufacturer in China, dominates commercial lighting. The cooperation between the two parties will form a model for high-end LED lighting products.
NVC and Cree announced strategic cooperation, apparently want to make up for technical deficiencies. The industry predicts that by 2015, LED lighting will account for 40%-50% of the entire market. LED is a cross-industry product. Both the semiconductor industry and the lighting industry face the problems and opportunities of mutual learning and integration.
The industry mergers and acquisitions turbulent NVC lighting was listed in Hong Kong last May. Yin Yin stated that the funds raised by the IPO will be mainly used for mergers and acquisitions, and the company will better meet the needs of the LED lighting market at home and abroad through the integration of mergers and acquisitions.
He revealed that NVC had also formed a strategic partnership with Taiwan Jingdian. Their target companies for merger and acquisition are mainly divided into two categories: one is a company that has core technology in the LED field, and the other is a company that has a certain channel advantage, especially in overseas mature markets.
In fact, this year, mergers and acquisitions strategy has appeared many times in the LED industry. On January 25 this year, Neo-Neon announced that it had acquired HCI of the United States for a consideration of US$17 million. In addition, Sunshine Lighting also acquired 50% equity of Hangzhou Hanguang Lighting at a consideration of 13.5 million yuan, and obtained a 30.188% stake in LIREN Japan.
The cost-cutting node of the lighting industry highlights the integration of the technology and the channels, both to meet the era of LED general lighting. According to industry sources, according to the current development speed of the LED industry, by the end of this year, the price of LED light sources may drop to US$1 per watt, which is only 20%-50% more expensive than energy-saving lamps. According to the laws of the industry, once this spread is reached, the LED lighting market will expand at an unprecedented rate. In China alone, the replacement rate of energy-saving lamps can reach 10% in the short-term, while the replacement rate in the US and Europe markets is expected to reach 50%.
In response to the sudden enlargement of the LED general lighting market, domestic companies want to speed up the pace of development through cooperation and mergers and acquisitions. According to statistics, there are currently more than 10,000 lighting companies in the Mainland, and the combined share of the top three companies such as NVC, Philips, and Shunde Huaqiang Benbang is only 2.5%. Losing the opportunity of the LED market may well lose the seat in the entire lighting market.
Yin Yin said: "At present, LED is not our source of profits. We hope to strengthen quality and reduce costs through cooperation and mergers and acquisitions. We believe that with the enlargement of the LED market, this will become our source of profit after two to three years."
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