In the past two years, it's become increasingly clear that the pace of globalization for domestic enterprises has significantly accelerated. The 2016 International Lighting Fair in Frankfurt served as a powerful testament to the rising influence of "China's strong lighting power" on the global stage.
China's overall development strength is impressive, with companies from all industries actively participating in the global market. As a result, domestic firms are now entering what is being called the "new normal" in their operations.
Many leading Chinese LED companies have been focusing on overseas markets over the last couple of years, expanding their reach beyond the domestic landscape. With the domestic LED industry structure largely established, international markets have emerged as a crucial growth driver for Chinese LED firms.
At the same time, while domestic companies are expanding globally, more international LED giants are turning their attention back to China. This has created a competitive environment where both local and global players are vying for dominance.
**Chinese LED Companies Go Global and "Capture" Markets**
Despite China's leadership in the packaging market, many domestic companies still face challenges—being large in scale but not necessarily strong in technology or innovation. Many small and medium-sized enterprises (SMEs) are struggling, with some even failing in recent years.
To enter overseas markets, Chinese companies must overcome key barriers such as patents, advanced technologies, and distribution channels. Leveraging capital through acquisitions has proven to be an effective strategy.
For example, Mulinsen, a major player in the LED packaging sector, has built its competitive edge through strong technological capabilities, large-scale production, and a well-integrated industrial chain. In March of this year, the acquisition of Landvewans helped boost its overseas business, positioning it as a global leader in LED packaging and lighting.
Similarly, Huacan Optoelectronics announced plans to acquire 100% equity in Harmony Corelight (Yiwu) Optoelectronics by issuing shares. This move followed previous acquisitions, including the purchase of MEMSIC, Inc. in cash, demonstrating a strategic push toward expansion.
In May 2017, Stereo Optoelectronics acquired the Nitto fluorescent film project in Japan, becoming one of the most complete CSP manufacturing companies in China. This acquisition not only secured core technology but also significantly reduced material costs, accelerating the development of CSP technology.
Feile Audio’s two-year acquisition of Xiwannian was another key step in its internationalization strategy. According to Fei Lesheng Zhuang Shenan, going global requires significant investment and time. However, through mergers and acquisitions, Feile Audio was able to leverage well-known brands and expand its global presence.
It's evident that through overseas acquisitions, Chinese LED companies are gaining access to advanced technologies and breaking through patent barriers. These moves help reduce development risks and costs, enhance product competitiveness, and allow them to benefit from the experience curve effect.
Moreover, overseas M&A is an efficient way for Chinese companies to quickly enter international markets and expand their global footprint. By utilizing existing foreign brands and distribution channels, they can significantly shorten the market development cycle.
However, as the integration process accelerates, the domestic and international environments faced by Chinese companies are becoming more complex. Whether in market expansion or financial operations, there are risks that need to be carefully managed.
**International LED Companies Enter China and "Grab" Market Share**
While Chinese LED companies are striving to go global, international players are also targeting the Chinese market, aiming to strengthen their presence. According to research by the High-tech Research Institute's LED Research Institute (GGII), the global LED lighting industry has been rapidly shifting toward China in recent years.
Domestic lighting companies are expanding overseas, while foreign firms are scaling back. For instance, Philips Lighting has been investing heavily in R&D tailored for the Chinese market, offering cost-effective and high-value solutions. It has even adopted a low-price strategy to capture market share.
Philips has maintained a strong grip on product promotion, channel control, and brand building in China. Facing a rapidly changing LED market, it continues to innovate and adapt, showing its commitment to the Chinese market.
Osram, another global leader, has been actively expanding its investments worldwide. In 2014, it established its first LED back-end factory in Wuxi, which became the second-largest Osram project globally. With growing demand for its products, Osram recently launched the second phase of the Wuxi plant, which will more than double its current production capacity and create over 2,000 jobs.
According to Lim Khoon Teck, General Manager of OSRAM Opto Semiconductors, the second phase is expected to begin operations in early 2019, further solidifying Osram's position in the Chinese LED market and boosting the local economy.
As international giants increase their presence in China, they bring improvements in talent, technology, and operational environments. This benefits local companies as well. While global players operate on a worldwide scale, many Chinese firms remain focused on the domestic market. To achieve true "global leadership," this mindset needs to change.
The 2017 High-tech LED Annual Conference will take place on December 21–22 at the Shenzhen Baoan Dunxi International Hotel. Industry leaders will gather to discuss topics such as "Strategic Positioning in the Deep Integration Era" and "What Will Win the Final Battle Between International and Local Players?" Join us to gain valuable insights and stay updated on the latest trends in the LED industry!
FAKRA Automotive High Frequency Connectors
Fakra Automotive High Frequency Connectors,Multi-Port Rf Connectors,Fpc Automotive Connector,Automotive Terminals Connector
Dongguan Zhuoyuexin Automotive Electronics Co.,Ltd , https://www.zyx-fakra.com