LEDinside recently visited Mr. Tang Guoqing, General Manager of China Market Development of CREE, to understand the current layout of CREE in the Chinese market. During the talks, Mr. Tang Guoqing has always stressed that CREE attaches great importance to the local Chinese market, and takes “Keui Core, China Love†as an important goal of CREE localization in China this year.
Huizhou, China becomes the production center of CREE
Since CREE officially acquired Huizhou Huagang in 2007, it has continued to use Huagang's packaging production line, making Huizhou a production center of CREE in China. It is understood that 85% of CREE's LEDs are currently packaged in Huizhou.
Mr. Tang Guoqing mentioned that in addition to the original packaging production line, CREE has established the first chip production base outside the United States in Huizhou. 11/9 signed a contract with the Huizhou Municipal Government to purchase a 58,000-square-meter factory in Huizhou Zhongkai High-tech Zone. It has entered into intense construction and is expected to be mass-produced in the second half of 2010. At present, CREE's chip factory only includes chip fabrication (including white light chips), testing and grading before LED packaging. There is no epitaxial wafer device yet, but in the future it will not be ruled out that the epitaxial wafer will be pulled into China.
With the conditions and popularity of CREE, it is easy to obtain support and project subsidies from various local governments in China. However, this CREE project in Huizhou is not focused on subsidies from local governments. Instead, it is mainly to open up the market. In addition to the proximity to the original packaging production line, most of the customers are concentrated in South China. Therefore, how to make LED components and serve customers well is the significance of CREE's establishment of Huizhou in the chip factory.
Mr. Tang Guoqing also mentioned that the next stage of the goal, with the expansion of business in China in the future, will also consider a new layout in China.
Ke Ruixin, China's love, implement China's localization strategy
Compared with other LED manufacturers, CREE is more active in the Chinese region. In 2009, China alone accounted for nearly a quarter of CREE's revenue. The layout of CREE in the Chinese market in 2010 places great emphasis on localization. And "Keui core, China" is an important goal of CREE localization in China this year.
Mr. Tang Guoqing summed up the specific content of several localizations:
Localization of talents: At present, there are more than 2,000 employees in China, and there will be more staff in the new factory. In the future, we will give priority to cultivating local Chinese talents.
Product Localization: At this stage, new LEDs, such as XPG, have been produced locally in China.
• Technology localization: CREE works closely with local Chinese lighting manufacturers to help develop green lighting products and jointly improve the technical level of Chinese LEDs.
In addition, CREE has achieved concrete results in several major engineering projects in China. For example, the Expo Theme Pavilion and the Expo Center have applied CREE LED components.
LED is one of the most suitable light sources at present, you should understand it and treat it well.
Finally, for the prospect of China's LED market in 2010, Tang Guoqing believes that LED lighting in the market will have explosive growth in 2010. In addition to road lighting, indoor lighting will also have a breakthrough development. Of course, the LED display will also rise. However, Tang Guoqing believes that the Olympics and the World Expo have passed and the growth is limited. On the contrary, it is more optimistic about the field of LED lighting. In addition to the LED lighting applications such as roads, landscapes and buildings in the lighting sector in China in 2010, the demand for indoor lighting will also come up quickly.
Mr. Tang Guoqing believes that LED has advantages in the field of lighting, but also some weaknesses, such as a higher price; but it is undeniable that LED is currently the most suitable environmentally friendly light source for lighting applications. In the field of lighting, in addition to the light source problem, there are power supply efficiency, other technologies such as secondary optics need to be improved, so experts and companies in many fields need to improve it together. Therefore, LED should understand it and treat it well so that the industry can develop healthily and sustainably.
LEDinside view:
At the end of 2009, the National Development and Reform Commission of China proposed the “Opinions on the Development of Semiconductor Lighting Industryâ€. In the “Opinionsâ€, for the long-term goal of LED, it is hoped that the market share of LED lighting products will reach 20% in functional lighting in 2015, and LCD backlights will reach 50%. More than %, the market share of landscape decoration and other products reached more than 70%. Therefore, the prospects for the LED market in China in the future are expected.
However, in the "Opinions", it is also proposed to achieve "large-scale MOCVD equipment, key raw materials, and more than 70% of chips to achieve localization" in 2015. More than 80% of the current power LED chips and devices in China still need to rely on imports, making the Chinese government actively introduce the technology and capacity of international companies. Therefore, for LED manufacturers who want to actively enter the Chinese market, they should seriously consider how to localize and have the opportunity to have a place in the Chinese market.
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