Hangzhou Silan Mingxin Technology Co., Ltd. claims to be the best quality chip in China. The "heart" of two LED displays in Tiananmen Square on the 60th anniversary of the National Day is a three-color high-brightness LED chip independently developed by Hangzhou Silan Mingxin Technology Co., Ltd.

Gaogong LED hosted “2010 LED Illuminated China Industry Tour” during Hangzhou Station, Gaogong LED CEO Zhang Xiaofei and Shi Lanmingxin General Manager Jiang Zhongyong started a dialogue on topics such as LED talent, technology, management and international market.

Is the confidentiality agreement useful?

The rapid development of the LED industry has led to a shortage of LED talents. How to manage talents is crucial for LED companies. Is it useful to sign a confidentiality agreement? Allow talent flow or contain talent flow?

Zhang Xiaofei: The upstream enterprises are expanding their scale, and the new enterprises are investing a lot. The outstanding talents in the field of epitaxial chips are not many, and it is easy to cause talent shortage rate. How does Silan Mingxin keep talents?

Jiang Zhongyong: Silan Mingxin is different from other companies. We are more concerned with the cultivation of talents, such as recruiting many college students who have just come out of school. I will hold regular seminars with subordinates or newly recruited employees to tell them about the company's talent concept. I think this is very important.

Zhang Xiaofei: So what do you think about the flow of talent or incitement? I am talking about a lot of high talents coming and going...

Jiang Zhongyong: I personally allow talents to flow, and Silan Mingxin never signs confidentiality agreements with employees. This is something that many companies can't do. The technicians and managers of Silan Mingxin have been dug up by other companies. These people either use our technology as a gift to give away, or they are the masters of their own affairs. For example, a company in Central China that everyone knows belongs to this situation.

Zhang Xiaofei: Does this mean that Silan Mingxin lacks a kind of cohesiveness, or centripetal force?

Jiang Zhongyong: Let's put aside the heart-to-heart force. The reasonable flow of talents is a good thing. Talents can go or stay. This is open in Silan. Business leaders should be broad-minded, and companies should establish an open platform so that everyone knows how to manage technology.

Zhang Xiaofei: But I still think that the impact of high-end talent flow on management and R&D is great. Some heavyweights have been dug up, what kind of impact on Silan Mingxin?

Jiang Zhongyong: Silan Mingxin will not be affected because talents are gone. We have a very good talent management mechanism. We must stand at the height of the entire LED industry to look at the issue of talent mobility. This year we recruited 20 new college students and prepared to train a new group of talents. The introduction of new ideas and new ideas is a new blood for the company. Someone behind is chasing you, you will have new pressure and new motivation, which is a promotion for the enterprise. Having a strong corporate presence competing with us will force you to improve, so it is good for us in turn.

Management is more important than technology?

According to Jiang Zhongyong, Shilan Mingxin clearly proposed to take the middle and high-end market routes, research and development and production technology with high level of technology from the beginning of the establishment of the factory to avoid low-cost competition between the same industry. Since the promotion of Mingxin brand to the market in 2006, Silan Mingxin has established an efficient quality management system with the quality policy of “Quality Achievement Brand, Technology Creation Mingxin” and the concept of “China's best quality chip”.

Zhang Xiaofei: The ability of technological innovation is crucial to the competitiveness of an enterprise, especially for the LED industry. If there is no core technology, the products on the market are easily homogenous to other manufacturers. What kind of strategy does Silan Mingxin adopt to achieve the desire to be the best chip in China?

Jiang Zhongyong: The technological innovation and progress of enterprises is gradual and orderly. Our chips are made of aluminum, not gold. At that time, many people were not optimistic about using aluminum, but with the experience of more than 20 years of integrated circuits, the understanding of aluminum is very deep. The cost of aluminum is low, no metal is wasted, and social resources are saved. We have used it for five years now. Silan Mingxin will do well in the future. You can't just rely on the previous things. You must have constant innovation ability and constantly improve your own standards. You can be invincible. To be the best quality chip in China, we say so, and do the same.

Gaogong LED Zhang Xiaofei: In addition to technology, what do you think is more important for LED companies?

Silan Mingxin Jiang Zhongyong: Management. From the perspective of management level, Silan Mingxin and other companies have great differences. It has integrated the management experience of more than 20 years of integrated circuits into the LED industry. Management is actually an art. Many of our LED companies, whether large or small, have insufficient attention in management. The real management system in quality management is not well established, and the final economic benefits are not reflected.

What happened to China's LED market?

The number of Taiwan's extension and chip companies is getting smaller and smaller, and the scale is getting bigger and bigger, and the alliance is fighting. It is understood that in 2010 Taiwan's LED chip production will account for 26% of global LED chip production. This is a force that cannot be ignored. Perhaps mainland enterprises should learn from the practices of Taiwanese companies in terms of market and management.

Gaogong LED Zhang Xiaofei: At present, it is difficult for China's mainland LED to compete with international leading LED companies. There is also a big gap between Taiwan and its counterparts in terms of capacity, yield and performance reliability. What do you think about this phenomenon?

Silan Mingxin Jiang Zhongyong: Taiwan's LED enterprise products have many similarities and lack of innovation. I am not optimistic about Taiwanese companies. I feel that I have to learn to be sharp. Considering the comprehensive technology, management and capital strength, Silan Mingxin is the same as Ke Rui, which is close to Nichia. Our three indicators of quality reach the level of Japan and Asia: the coincidence of light is less than 15%; at normal temperature, 1000 hours, the light attenuation is less than 5%; the heat dissipation failure rate is 30ptm.

Gaogong LED Zhang Xiaofei: LED status is hot in the industry, the market temperature is low...

Shilan Mingxin Jiang Zhongyong: So Shilan Mingxin will not blindly follow the trend, we have two major investments, basically at the best point. In 2004, Silan Mingxin was established. At that time, the international blue-green light chip technology program has matured. This way, there are fewer detours, the cost is small, and the risk of investing money is small. I don't think the early investment can be too big.

High-tech LED: The market is not up, you go to promote the market, a little bit of support. The lack of brand strategy is a common problem for domestic LED companies. Similarly, as a listed company, I don't think that Silan Mingxin is doing a good job in the brand. Does your company have a brand strategy officer?

Shilan Mingxin Jiang Zhongyong: It takes time to establish and promote the brand, and it must be done along the laws of the industry. The temptation in the market must be able to withstand, the basic things need to be tracked, what should be, what should not, and some trade-offs are needed. The next five years will be the stage of innovation. When the scale is up, the market will come to fruition. LED is a new type of industry. It is an opportunity for China. The chips made in China will be the best in the world. China's LEDs can sit in the world's position.

Gaogong LED Zhang Xiaofei: I think it takes a lot of scale to make epitaxial wafers, otherwise the marginal benefits will not be too good. The production capacity of Shilan Mingxin's epitaxial wafers is not enough according to the number of your machines.

Silan Mingxin Jiang Zhongyong: The epitaxial film is half done by itself, half of the purchase, but we still have a 50% gross profit margin. Silan Ming core can withstand purchases. At present, the production capacity is obviously insufficient. The 6 MOCVDs ordered by Silan Mingxin to AIXTRON AG will arrive at the end of this year, and will arrive at the beginning of next year. It will take only one or two months to debug and mass production.

Gaogong LED Zhang Xiaofei: As far as I know, debugging MOCVD generally takes at least half a year. I was surprised that Silan Mingxin could be installed and commissioned in such a short time and mass-produced. A company can't avoid a short board. What is the short board of Silan Mingxin? What is the strength?

Silan Mingxin Jiang Zhongyong: The strength of Silan Mingxin is the understanding of the semiconductor industry, the understanding of the entire quality system is deeper, and the packaging is standardized. The short board is an old customer who relies on products to operate and repeat.

Ten years later, Philips in China

Gaogong LED Zhang Xiaofei: Made a chip, and made a package, will Silan Mingxin do the application?

Silan Mingxin Jiang Zhongyong: Yes. But it will take five years to do it. Whether a company can do well in a certain field, first of all, you must do one thing well before you can consider doing another thing. Do things in a state that others can't reach - my mentality of doing things is to make things a realm.

Gaogong LED Zhang Xiaofei: Does that mean that Silan Mingxin will become "China's Philips" in ten years?

Silan Mingxin Jiang Zhongyong: Yes. Not only will the application products be better and stronger, we set up a packaging company for display screens in 2009 - Hangzhou Meikale Optoelectronics Co., Ltd., which is positioned as the world's first packaging company, with the global leader in the display. Enterprises Nichia and Cree compete.

Note: I think it is very difficult for Shilan Mingxin to make "China's Philips" ten years later. After five years of application, it will face competition from many large LED companies. Today, companies that want to be the whole industry chain are already eager to move, and claim to be the future "China's Philips." We expect China to have a company like Philips, but even if it is "do it," it is just a Chinese-style Philips. I think Philips in the bones is difficult to copy, and we don't have to deliberately copy it. Philips can be a model target for us to catch up with.

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