South Korea's LG internal integration and Samsung's LED battlefield

At the end of October, South Korea's LG Group's Siltron announced its official production of a 6-inch sapphire baseboard from March 2011. The company exhibited this sapphire backplane at the "iSEDEX2010 (12th International Semiconductor 2010)" held in KINTEX, South Korea on October 12-15, 2010.

Hou Yuxuan, a senior researcher at China Investment Consulting, pointed out that the internal integration of LG Group has further laid a good foundation for the LED market. First of all, the government's strong support is the innate advantage of many Korean groups. This is a major international electronics group such as LG and Samsung in South Korea. It has created favorable conditions for buying out global backlight LED chips or monopolizing other related industries. It is also an advantage that other large regional electronics groups cannot match.

Secondly, from the perspective of the global LED industry distribution, the Korean and Japanese markets have always occupied the high-end market of LED packaging products. The internal integration adopted by LG Group is undoubtedly a powerful “dumbbell mode” that only focuses on controlling the high end of the two ends. Market, intermediate links to find intermediate agents, from design to production to supply their own electronic products, LG's move with the most limited resources for the fastest integration, the formation of vertical integration of LED components to LED accessories, mining profits Maximize.

"2010-2015 China Semiconductor Lighting (LED) Industry Investment Analysis and Forecast Report", if the large diameter of the bottom plate can be achieved, the number of LED chips obtained from one substrate will increase, thus increasing mass production. . In addition, since the base plate occupies 10% of the cost of the LED chip material, most of the purchase of the sapphire base plate in the Korean market relies on imports from Japanese companies, so this will also reduce the cost of the sapphire base plate.

Zhang Yulin, research director of China Investment Consulting, pointed out that the future 6-inch sapphire substrate will become the mainstream technology of LED chips, so it will also become an effective weight in increasing mass production and price competition. From the perspective of the domestic competition situation in Korea, the move of LG has undoubtedly intensified the fierce competition with Samsung. The two are not only eyeing this LED cake in the Korean market, but also infiltrating into the LED market in various countries. Competition in the market will undoubtedly intensify.