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"New Century Optoelectronics (Kunshan) factory will be completed in the third quarter of this year, and LED backlight chips will be supplied to Chinese TV manufacturers in the future. At the same time, our LED lighting chips will gradually set up factories in mainland China and mainland China. Foreign lighting manufacturers supply, thus helping them to enhance product competitiveness." Recently, Chairman of the New Century Optoelectronics Zhong Kuanren showed great market confidence in the exclusive interview with "High-tech LED".
According to a recent report released by the High-tech LED Industry Research Institute (GLII), in the face of the unstoppable price reduction trend of LED lighting, many Chinese Taiwanese chip and packaging manufacturers have gradually announced the expansion of production news. "Everyone is fast-moving and expanding their production in mainland China and Taiwan, so as to rapidly increase the price competitiveness of their products." Zhong Kuanren revealed that only the new Century Optoelectronics investment plan in mainland China this year will be as high as 35 million US dollars, and will all Into the Kunshan factory. “China is the second largest market for the company. Last year, 40% of its contribution came from the mainland China market. Therefore, we decided to continue to increase the proportion of the mainland China market in the future.â€
However, the global price of LED lighting application products in 2011 has fallen sharply, which is an indisputable fact that the profits of upstream chip manufacturers have dropped rapidly. New Century Optoelectronics has strengthened its cost competitiveness through "innovative product technology, first-step product layout" and successfully broke through the deadlock of low gross profit, becoming the only chip company in Taiwan to achieve performance growth.
According to GLII data, New Century Optoelectronics achieved operating income of NT$4.49 billion in fiscal year 2011, a year-on-year increase of 49.59%. "Our goal is to achieve the terminal lighting cost of less than 3 US dollars per thousand lumens in 2015." Chen Zhengquan, executive vice president of Optoelectronics, New Century.
40% of performance comes from mainland China
At the beginning of its establishment in 2002, New Century Optoelectronics mainly produces green LED chips and supplies them to LED display companies. Before 2009, 90% of the company's products were green LEDs and 10% were blue LEDs. With the increasing demand for white LEDs. In 2009, the company gradually shifted its focus to blue LEDs. According to the data, in 2012, the new century photoelectric blue LED accounted for 80%, and green LED accounted for 20%.
"In 010, we began to enter the field of TV backlighting and lighting." Chen Zhengquan revealed that the current business structure of the company is about 65% of lighting products, 20%-30% for backlight products, and the rest for RGB products. He said that early LED displays mainly focused on brightness issues, but indoor displays are now very common, leaving only price and cost competition, so the company only focuses on outdoor displays and outdoor RGB lighting in the RGB field.
At present, New Century Optoelectronics has a total of 65 MOCVD units, of which the Tainan main plant has an annual production capacity of 150,000 pieces (calculated in 2 inches) and will be expanded to 180,000 pieces by the end of this year. At the same time, New Century Optoelectronics has the technology to mass produce 4 inch and 6 inch epitaxial wafers. Chen Zhengquan revealed that the company has now become a 4-inch epitaxial process for MOCVD machines.
In addition to the production equipment and process replacement, in the past two years, the target market structure of New Century Optoelectronics is also undergoing a quiet change.
Chen Zhengquan revealed that in 2010, the products of New Century Optoelectronics were mainly sold to Japan and South Korea. Among them, Japan is one of the fastest-growing countries in the global LED lighting application market. The sales revenue in the region currently accounts for 40% of the company's total sales, and the Korean market is 10%.
Different from the product structure of the Japanese and Korean markets based on backlights, New Century Optoelectronics mainly promotes LED lighting products in the Chinese mainland market. "The Chinese mainland government is striving for the development of the LED lighting market, and the price of LED lighting products is still high at this stage, and the penetration rate of the consumer market is still low." Chen Zhengquan said that the new century photoelectric has locked the LED outdoor in China from the beginning. Demand for lighting, commercial lighting and government tenders.
“The Chinese mainland market is more optimistic about the brand effect. Therefore, last year we promoted high-end products sold in the Japanese market on the mainland, mainly medium and high-power products of 0.2W or more.†Zhong Kuanren revealed that sales in the Chinese mainland market accounted for the company last year. 40% of total sales, of which more than 80% are from the lighting market.
Accelerate the layout of the continent
In September 2010, the joint venture project between New Century Optoelectronics and the Kunshan Municipal Government of Jiangsu Province began to build a factory. The total investment of this cooperation project is about 200 million US dollars, of which 51% is invested by Kunshan Municipal Government and 49% is invested by New Century Optoelectronics. The investment amount of the first phase is 35.88 million US dollars.
Zhong Kuanren revealed that the factory will be completed in the third quarter of this year. In the future, the joint venture project will be provided with technology and management by New Century Optoelectronics. The Kunshan Municipal Government will coordinate government resources and assist business development. “The Kunshan plant will mainly purchase 2-inch MOCVD machines in the future. After the official mass production, the monthly epitaxial wafer production capacity will reach 20,000-30,000.â€
At this point, New Century Optoelectronics has three production bases, located in Tainan, Taiwan, Dongguan, Guangdong and Kunshan, Jiangsu. According to Zhong Kuanren's vision: In the future, the Tainan factory will focus on innovative technology research and development, and the foreign customer base will be supplied by the Tainan factory; the Kunshan plant will be responsible for the production of a small number of epitaxial wafers and most of the chips; the Dongguan factory will mainly lay out the LED chip back-end production line.
“Our goal is to achieve the demand for chips in the Chinese mainland market by two mainland factories by 2015, and the technical indicators are consistent with the Tainan factory.†Zhong Kuanren said that the new century photoelectric future will be based on the Kunshan production base. Resource integration, and gradually strengthen cooperation with LED packaging and module manufacturers, in order to fully meet the huge demand in the Chinese mainland market.
When the reporter asked the new century Optoelectronics to transfer production capacity to mainland China on a large scale, is it worried about the problem of brain drain? Zhong Kuanren said that in the future, LED chip manufacturing will achieve automatic production, only a few people can control the central system, no longer need 1 The MOCVD machine is standard with 2 people. "The company's production line will refer to the confidential production control system of Japanese and Korean manufacturers."
"In the future, we will continue to increase the performance of the mainland market." Chen Zhengquan revealed that the company has entered the supply chain of the top four TV manufacturers and the top five packaging manufacturers in mainland China. At the same time, the company has developed two agents in the mainland, but the agents will only be responsible for the delivery and payment functions, customer prices, strategic partner selection, technical services will be completed by the new century optoelectronics. 
New Century Optoelectronics: Nuggets China Lighting Market
[Source: "High-tech LED - Research and Review" June issue / Hu Yanling]