2014 LED industry diversification of strategic layout

Since 2014, with the rapid increase in the demand for LED lighting, the LED industry has ushered in an unprecedented period of development, due to the outbreak of LED lighting market changes brought about by market changes and market expectations, the various aspects of the upstream and downstream As enterprises seize more market share, competition has become increasingly fierce.

In order to cope with competition and consolidate the existing market position, mergers and acquisitions as one of the most convenient and fastest-acting roads have been favored by all types of companies.

CSA Research pointed out that compared with previous years, mergers and acquisitions among companies have become more frequent and strategic intentions have become more diversified, and the direction of integration has also shifted from the "merger acquisition of the weak" to the "strong merger and acquisition of the strong."

Since the LED industry's mergers and acquisitions have occurred frequently this year, the entire industry chain battle has become increasingly fierce and the industry consolidation drama has escalated.

In the first half of 2014, there were a total of 11 major M&A transactions in the semiconductor lighting industry, of which the total transaction amount disclosed exceeded RMB 3.5 billion. The vast majority of the transaction results were based on the acquisition of a controlling stake, and the purpose of M&A was to diversify beyond the extension of the industrial chain. Development is more concerned with channel, brand, and production capacity, to strengthen its strength and expand its scale.