Wang Sen: Integration considerations

On July 23, the “Guangdong LED Lighting Supply Chain High-Level Tour Seminar” was held in the Carinna Grand Hotel in Foshan Chancheng District. The seminar aimed at Foshan LED lighting companies eager for cost-effective accessories manufacturers to appeal, integrate the entire industry chain resources, including lamp beads, drive ICs, power supplies, professional stores and other high-quality enterprises came to Foshan to facilitate the upgrade of Foshan LED industry.

The seminar was jointly sponsored by Gaogong LED and Foshan Lighting Association, and was strongly supported by local governments, enterprises and the media. It covers key elements such as regional industry supporting enterprises, governments, associations, media and exhibition platforms. Lighting companies offer complete lighting solutions from package to product, policy to promotion, channel to marketing.

The meeting attracted Chen Bin, general manager of Guangdong Zhonglong Transportation, Xu Liancheng, deputy general manager of Guangdong Zhaoxin, Wu Yulin, president of Foshan Lighting Association, and Zhang Hua, secretary-general of the Foshan Lighting Association, and attended the meeting. The foot has doubled.


Wang Sen, managing director of Guoxing Optoelectronics, said that for enterprises to develop rapidly, proper integration is necessary. Many companies recognize this point. By vertically integrating the entire industry chain, while ensuring the supply of spare parts, it also greatly reduces the cost of products; or actively seeking reliable partners to establish a high-quality raw material procurement channel, saving research and development. The cost of the design, the product can also be quickly cut into the market.

Take Guoxing Optoelectronics as an example, it is always doing the integration of the entire industry chain. While adhering to the main business of packaging, it also extends to upstream epitaxial chips and downstream applications.



For packaging companies, it is difficult to find high-quality, cost-effective chip suppliers. Guoxing is involved in the upstream to meet the company's demand for chips. At present, our chips have entered the trial production stage. Involved in downstream applications, it is entirely for testing the devices produced by the company, and few finished products have entered the market.

Therefore, enterprise integration should be considered from the actual development situation, usually at different stages of development, the content of integration will also be different. Reasonable integration can promote the development of the enterprise, but blind integration will also waste the limited resources of the enterprise.

Wang Sen said that in general, it is relatively easy to integrate midstream and downstream. This is why many packaging companies choose to integrate with applications and application enterprises integrate into packaging. However, due to the high technical content and large investment, the company does not dare to risk easily. Therefore, for large enterprises, you can try to do the whole industry chain. For small enterprises, it is more practical to optimize the procurement channels for raw materials.

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