Samsung LED chain expansion with chip as the guide

On June 9th, in the Microelectronics Industrial Zone of Tianjin Economic and Technological Development Zone, Tianjin Samsung LED Co., Ltd. held a new production line production ceremony. Tianjin Samsung LED Co., Ltd. was established in June 2009 with a land area of ​​43,000 square meters. In just over a year, the Tianjin Samsung plant expanded its production capacity rapidly and achieved a change of three.

This is just a link in the Samsung LED industry chain. Chips from Korean factories will complete packaging and module development, manufacturing and downstream application sales. The LED industry is another typical representative of Samsung's vertically integrated industry integration capability, which makes it more competitive in the terminal market.

Double capacity in one year

Tianjin factory to be the world's number one

According to Jin Changwu, general manager of Tianjin Samsung LED Co., Ltd., in June 2009, based on the first factory of Tianjin Samsung LED, the LED business was separated from Samsung Motors High-tech Corporation and Tianjin Samsung LED Co., Ltd. was established. In September 2009, the modern electronics building was leased in the Tianjin Microelectronics Industrial Zone, and the second factory was established to produce PK G for LED color TV. In February 2010, the three factories also officially mass-produced LED PK G and LED color TV modules. "So far, we have a considerable capacity," Kim said.

Tianjin Samsung LED continued the low-key of the manufacturing department, and was not willing to disclose the specific investment quota and production capacity. Nandu reporters learned from the side that a large part of the LEDs used in color TVs on the market come from here, and one of them mainly produces mobile phones and computer products. The second and third plants are mainly used in automobiles and color TVs. The production capacity of the second, third and first plants is not much different, which means that the production capacity has increased by about 200%, and the fourth plant is already under planning.

Nandu reporter saw in the second factory that the closed production line is running 24 hours a day. The LED industry is a technology and capital-intensive industry. Only a few employees in a workshop constantly view data between machines. According to Samsung, the chip from the Samsung South Korea factory is here to package, solder gold wire, point phosphor, after a series of links to form LED products, in addition to self-supply, but also to a number of other companies.

In April 1995, Samsung took the first step in the LED business. Samsung hopes to find new market space by using LED for portable products and color TVs. In April 2009, Samsung Electronics and Samsung Electric jointly established Samsung LED, and in the following two months, Tianjin Samsung LED.

Kim Jae-hook, president of South Korea's Samsung LED, said that when Samsung Samsung LED Co., Ltd. was established, it established its goal of becoming the world's number one LED company and playing the role of "Samsung LED globalization."

In Samsung's new strategic industry investment plan, by 2020, it will invest 23.3 trillion won (about 140.732 billion yuan) in LED (display materials) and environmental energy, among which Samsung will invest the most in the LED industry and will use it for display. The backlight is expanding in areas such as lighting and illuminating electronic components. It is planned to achieve a cumulative investment of 8.6 trillion won by 2020 and sales of 17.8 trillion won.

Chain expansion to achieve scale effect

LED is a very proud move for Samsung. In 2009, Samsung took the lead in launching LED TVs, and global sales exceeded 2.6 million units in one fell swoop. This was internally called “unprecedented success”. In fact, there is a complete industrial chain behind Samsung LED TV to support it.

At Suwon Headquarters in Korea, we mainly undertake core skills and research and development components such as sales, procurement, and management support. The Korea Xingxing Factory is responsible for the production of chips and other businesses. Tianjin's LED factory is responsible for processing the chip into packaging engineering and module engineering for LED products. In addition to South Korea and China, sales departments have been established in six countries around the world.

"We are the world's largest semiconductor company, which makes us an advantage in the development of the LED industry." Samsung insiders said that Samsung has accumulated a large amount of technology and experience in the semiconductor industry, providing support for LED chip production and R&D. Earlier, Samsung insiders said that Samsung's chip is the most profitable part of the company. US market research firm IC Insights expects South Korea's Samsung Electronics' semiconductor chip sales to increase by 50% in 2010, soaring to 30 billion. Dollar. In the mid-May of the year, Samsung’s 2010 annual investment of 26 trillion won, the semiconductor sector accounted for 11 trillion won.

Unlike many European and American manufacturers, Samsung not only has strong R&D capabilities, but also insists on building its own factories and producing itself. This vertically integrated industrial integration capability is relatively rare among the global information industry giants.

It is understood that Tianjin Samsung LED sales have grown rapidly, compared with the previous year has achieved a threefold increase. At present, LCD panels are gradually adopting LED backlights. This means that the reduction in the cost of LED backlights and the stable supply of chips are the key to competition. Nandu reporter learned that the price of Tianjin Samsung LED equipment is as high as 100,000 US dollars each, and the procurement scale is no less than 1,000. With hundreds of millions of dollars in investment, Samsung can achieve economies of scale and reduce costs as soon as possible.