South Korea LG internal integration with Samsung LED battlefield

At the end of October, South Korea LG group Siltron company announced that it will start mass production in the 6 inch sapphire plate news from March 2011. The company had in October 2010 12~15 days held in South Korea KINTEX iSEDEX2010 (12thInternational Semiconductor 2010) on the display of this sapphire substrate.

Investment adviser senior researcher Hou Yuxuan pointed out that the LG group this round of internal integration for its LED market to further lay a good foundation. First of all, the government support is many South Korean group advantage, the Korean LG, Samsung and other large electronic group campaign in the international scope, the global buyout of LED chips or other related backlight monopoly industry has created favorable conditions, this is the other large area electronics group incomparable advantages.

Secondly, from the observation of the distribution of global LED industry, South Korea and Japan market has been dominated by the LED product of the high-end market, the internal integration of the LG group to take is undoubtedly a powerful "dumbbell model" only focus on the control of both ends of the intermediate link of high-end market, looking for an agent, from design to production to supply their own the production of electronic products, the LG was integrated with the most rapid limited resources, forming a vertical integration of LED components into LED parts, mining maximum profit.

"China 2010-2015 semiconductor lighting (LED) industry investment analysis and prospect forecast report", if the large aperture can realize the floor, LED chip is obtained from a floor number will increase, it will improve the production ability. In addition, due to the bottom plate to occupy 10% of the cost of LED chip material, the majority of the purchase of sapphire substrate on the Korean market rely on imports from Japanese companies, therefore, the move will reduce the cost of sapphire substrate material.

Investment advisor research director Zhang Yanlin pointed out that the next 6 inches of sapphire substrate will become the mainstream technology of the LED chip, so it will also be an effective weight to improve production and price competition. From the observation of competition in South Korea, the LG and Samsung still undoubtedly exacerbated by the intense competition between the two, not only on the Korean market this piece of cake LED will penetrate to look at fiercely as a tiger does, footprint all LED market, LED market competition will be further intensified.