AUO Group gathers three resources to fight Hon Hai
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On the morning of November 27th, Beijing time, according to Taiwan media reports today, Taiwan’s three LED (Light Emitting Diode) factories are interested in merger. This move will help to gather the resources of the three parties, enhance the global competitiveness of AUO in the LED industry, and further confront the Hon Hai Group.
The three LED factories under the AUO Group are Lunda, Kaiding and Power League. Among them, Power League is a surviving listed company with shell resources. Kaiding is trading in the counter market, and Ronda has not yet listed. The three mergers will allow Lunda and Kaiding to be listed on the backdoor, integrating the resources of AUO Group in the upstream and downstream of the LED industry.
However, Chen Xuanbin, vice chairman of AUO Group, denied the plan yesterday. He said that although the concept of "three in one" is very red, please don't casually associate with the market. Chen Xuanbin is also the chairman of Power League and the chairman of Longda.
AUO Group executives pointed out that AUO Group has noticed this trend due to the trend and concept of the panel industry's “groupingâ€. Therefore, it is necessary to combine the resources of the group in order to fight the group. Otherwise, the competitiveness within the group may be lost. AUO executives stressed that in order to enhance AUO's competitiveness in the LED industry, AUO's companies will have a closer integration, and in the future will strengthen the technical exchanges within the three companies, namely Kaiding, Wei Limen and Ronda. Integration of resources. But the top executive did not talk about the merger.
According to industry analysts, Power League is good at LED packaging, while Kaiding's strength is LED lighting. Longda is the epitaxial plant in the upstream of LED industry. Each of the three companies has their own strengths. If each other's strengths can communicate and work closely together, AUO Group's power in the LED industry can expand rapidly.
Affected by the serious shortage of LEDs, Ronda is actively expanding LED epitaxial capacity, and has now spent more than 3 billion Taiwan dollars (about RMB 63 million) to expand production. In addition, Ronda plans to invest 30 billion Taiwan dollars (about 630 million yuan) to build four LED epitaxial factories. In order to cope with the increasing production capacity of the upstream Ronda, the two LED packaging factories located in the downstream of the industry, Wei Li Meng and Kai Ding, must also follow up and expand production.
AUO Group has decided to upgrade all notebook panels to LED backlights next year, and the LED LCD monitor panels that AUO has fully promoted earlier will make the demand for LEDs soar. 