Acquisition of Philips Lumileds China LED industry value chain changes

On the afternoon of March 31, the Chinese consortium led by GOScaleCapital announced the successful acquisition of shares in Lumileds 80.1, a subsidiary of Royal Philips of the Netherlands. Philips will retain the remaining 19.9* shares. The acquisition, valued at approximately $3.3 billion, is expected to be completed in the third quarter of 2015 after obtaining regulatory approvals. The rise of the industry, more need for global cooperation It is understood that the transaction is a consortium of Jinshajiang Venture Capital in conjunction with a number of Chinese-funded groups, Nanchang Municipal Government, Nanchang Industrial Holding Group, etc., with Jingneng Optoelectronics as the industry undertaking platform to launch the acquisition of Philips chips and The bidding work of the headlight company. After four rounds of competition, the bidding scheme of the Jinshajiang Venture Capital Group stood out from the nine campaign consortiums and was recognized by the Philips M&A team. According to the data, Lumileds is the world's leading manufacturer of LED lighting equipment, including lighting components, general lighting, automotive lighting and mobile electronic equipment lighting. The company's business covers more than 30 countries around the world. In 2014, the company's sales reached nearly 2 billion US dollars. The profit before tax is about 230 million US dollars. At the same time, as the platform for the industrialization of this transaction, Jingneng Optoelectronics has established production bases in Nanchang and Changzhou since 2006, established sales companies in the United States, and is the first in the world to realize the industrialization of LED chips on silicon substrates. . At the same time, Jingneng Optoelectronics is also the industrialization base of the national silicon-based LED engineering technology R&D center approved by the Ministry of Science and Technology. In this regard, Wu Ling, secretary-general of the National Semiconductor Lighting Engineering R&D and Industry Alliance, said that the acquisition is actually a Chinese capital operation and a cross-border resource integration of the semiconductor lighting industry. In addition to the sincere offer of the Chinese consortium, Philips should also see the development speed of China's entire semiconductor lighting industry, the ability of technology research and development, and the potential huge market space in China. Wu Ling believes that the transaction is a rare opportunity for China's semiconductor lighting industry. With this transaction, the internationalization of China's semiconductor lighting industry can be accelerated, and the technology and manufacturing capabilities of the industry can be enhanced. Moreover, Jingneng Optoelectronics has consistently adhered to independent innovation, and its silicon-based LED technology with independent intellectual property rights has advantages in silicon-based high-power LED chip technology. With the development of technology, the application field of LED lighting is becoming more and more extensive. In addition to common display screens and general lighting, the application of high-power LEDs, such as the special lighting market, will continue to increase. Lumileds has advantages in the field of high-power LED chips. Outstanding, the complementary advantages of the two are conducive to the establishment of a globally competitive base. Wu Ling also pointed out that semiconductor lighting is a successful technological revolution, has established a dominant position in the transformation of the lighting industry, and has been recognized globally. Moreover, semiconductor lighting is a global opportunity, a global challenge that requires global cooperation! Not a single company or institution, or even a country that can independently discover and release the full potential of the industry. Under the new situation, industrial development must have a big vision to solve the shortcomings of development through capital operation. This is a common method used by large international companies. Wu Ling said that part of the capital used in the merger and acquisition is also international capital. It is a matter of international industry. Chinese companies have always wanted to open up international markets. In addition, China Capital has achieved the goal of integrating the advantageous resources of the international semiconductor lighting industry by acquiring the world-class semiconductor lighting upstream R&D enterprise and using domestic enterprises as the industry undertaking platform. It proves that China's semiconductor lighting industry has gradually grown and developed, and has embarked on its own development path. It also proves that China's market and R&D strength are very attractive to capital. Under the guidance of the National Belt and Road Initiative, Chinese companies are bound to accelerate their progress. In order to help enterprises to go out actively, the Alliance has done a lot of work, such as promoting ELI global efficient lighting product certification, conducting energy efficiency leader in semiconductor lighting energy saving industry and corporate credit rating evaluation, and developing with China, the Netherlands, China and Germany, and the BRICS. In-depth cooperation, etc.; organize the industry's largest international semiconductor lighting forum and overseas in-depth visits, and also have an SSL series overseas promotion plan based on the national one-on-one strategy, leading companies with India, Thailand, Turkey, UAE, Poland, Russia, etc. The country conducts deep docking. At the same time, Wu Ling pointed out that the premise of enterprises going out is that the enterprises themselves must be excellent, especially in the intellectual property rights, so that there is no hidden danger to open up the market and truly expand the market.

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