Fortune Electronics: Creating a "Core" is the Hard Truth

As Dongguan's LED industry, since its establishment in 1993, Fortune Electronics has always been active in the industry with a positive attitude. It is an evergreen in Dongguan's corporate world. After mass production of high-power LED chips independently researched and developed, blessed electronics once again stood under the spotlight, becoming the focus of attention in the industry and emulating the object. The development principle of "creating core" is the absolute principle is worth studying.

In this year's Science and Technology Cooperation Week, Foton Electronics' booth area is about 9 square meters. It will mainly exhibit more than 300 products of nearly 30 varieties such as street lamps, downlights, ceiling lamps and fluorescent lamps.

First, the poor is changing then all the way is Jiufu Di Electronics was originally a small factory producing color picture tube parts, at the end of the last century when the fierce competition in the market decisive transformation, the end of 2001 into the semiconductor LED chip manufacturing industry. It is a difficult transformation that makes a big difference, so that this latecomer to become a leading LED brand companies.

Fudi Electronics is a state-owned high-tech enterprise that was engaged in the production of LED chips earlier. However, unlike those companies that began to manufacture LEDs, Fortune Electronics is a semi-finished company. After a difficult transformation, Fudi Electronics has successfully mastered a number of LED chip's independent intellectual property rights, manufacturing technology and high-power lighting device scale production process, and has become a LED brand enterprise in the forefront of the industry in the country.

In the 1990s, the small-scale production of Fortune Electronics was still able to meet the demand, but with the development of the market economy, quite a few small companies and even large state-owned enterprises could not adapt to market competition and withdrew from the stage of history. “The poor will change, the change will pass, and the general will be long”. Fudi Electronics realizes that if it is not to be eliminated, it will no longer be able to develop according to the old road, and strategic transformation and industrial upgrading are imminent.

At the beginning, Fortune Electronics was still a small factory producing color picture tube parts. In 1996, according to the needs of localization of materials for Guangdong Color CRT Plant, it entered the CRT parts area and rapidly developed into the largest and most complete PCM manufacturer in China at the time. And DY parts manufacturers. At the end of 2001, Fortune Electronics strategically adjusted its industrial structure and entered the semiconductor LED chip manufacturing industry. It invested a total of RMB 60 million in R&D expenses and engineering and technological transformation costs, achieving mass production of AlGaInP quaternary red, orange and Yellow LED chips and GaN-based Blue, green LED chip mass production, production capacity of 6 billion / year. At the beginning of 2006, Fortune Electronics decided to further extend the LED chip's industrial chain into LED packaging, LED devices and LED application products. In 2009, Fortune Electronics invested 190 million yuan to implement LED industry upgrades, focusing on the implementation of high-power LED blue-ray chip projects, and production of wireless mobile display terminals (MDT), semiconductor light source street lamps and train compartment energy saving and environmental protection LED new fluorescent lamps.

Currently, Fudi Electronics' products include power blue chips and quaternary red and yellow chips, quaternary devices, LED TV backlights, outdoor LED lighting fixtures including street lamps, tunnel lights, and patio lights, as well as light pipes Indoor lighting fixtures such as downlights, downlights, desk lamps, etc., have four series and more than 100 products ranging from chips to applications.

Second, create a "core" is the last link in the upper hand in the LED industry chain, high technological content, high profit margins, and this is the weakness of domestic enterprises. In April 2009, Fudi Electronics "AlGaInP quaternary high-brightness light-emitting diode chip" project passed acceptance, breaking the technical bottleneck of the domestic chip manufacturing. At present, the company has ranked among the top ten domestic chip makers.

Fudi Electronics has come along with us and understands a reason: The era is advancing. The market environment is ever-changing. If companies want to remain invincible in the fierce competition, they must innovate: they must be innovative and have a long-term perspective on the development trend of the industry. Long-term development path; owns core product technology and establishes its own brand.

As we all know, the upper reaches of the LED industry are mainly epitaxial production and chip manufacturing. The upstream segment has a high technological content in the LED industry chain, with a large investment in equipment and a relatively high profit margin. In reality, there is a small number of LED upstream companies with large-scale production capacity, mainly in the United States, Japan, the European Union, and China Taiwan, and there are very few in mainland China. It can be said that in mainland China, who grasped the technical direction of "core", it seized the core of LED.

Fudi Electronics has entered the HB-LED field since 2002 and has gradually acquired all the development and production capabilities of the downstream and midstream products of the LED lighting industry chain. Subsequently, Fortune Electronics began its march into the LED upstream production chain. April 2009, Fortune Electronics' technology-based SME technology innovation fund project "AlGaInP quaternary high-brightness light-emitting diode chip" passed the acceptance of the Guangdong Provincial Science and Technology Agency, with ultra-high brightness (dye intensity greater than 70 mcd) The ohmic contact process in the manufacture of quaternary system (AlGaInP) red-yellow light HB-LED chips has achieved breakthroughs and has obtained patents for inventions. The successful development of this project has broken the development bottleneck of the domestic chip manufacturing industry and changed the situation in which China's power-based chips are heavily dependent on overseas.

After the development of technological achievements, how to maximize the industrialization, scale, and efficiency has become a roadblock. On the technical level, although domestic LED chips have reached the level of 110lm/W-120lm/W, there are only a few companies that can mass-produce. "Technology is not the only key to determine the success or failure of a business. Enterprises must win in the fierce competition. The most important thing is to look at their competitiveness in volume production, quality, and cost control." Some experts pointed out. In order to seek new breakthroughs, Fudi Electronics hired Taiwanese experts to serve as consultants. After repeated debugging and research, it finally solved the mass production problems.

In August 2011, the Dongguan Municipal Bureau of Science and Technology organized a scientific and technological achievements appraisal meeting for “GaN-based LED high power chip” project completed by Fortune Electronics. After rigorous inquiry and discussion, the experts gave their appraisal opinion: "GaN-based LED high-power chip" project innovatively uses laser drilling, mirror reflection and other technologies, developed a new type of GaN-based LED high-power chip, luminous efficiency increased by 30 More than %; products with high luminous efficiency, long life, energy saving and environmental protection; project results have a number of independent intellectual property rights, in the LED chip manufacturing technology to reach the leading domestic level.

With advanced technology and scientific management, Dongguan Fudi has now become one of the top ten domestic chip manufacturers, and has 26 patents in the LED field, including 5 invention patents. In the field of chip technology, the company tackles key issues such as omnidirectional reflection film, ITO electrode design technology, ohmic contact technology, laser drilling technology, chip thermal conduction technology, and enhancement of lateral light utilization efficiency, focusing on solving heat dissipation and light emission in high-power chip manufacturing. Two key common technical problems of efficiency.

Third, "the application of the first chip-based extension to the source"

The bottleneck of Fortune Electronics is that the production capacity and output value are too small. For this reason, Fortune Electronics has begun to implement the epitaxial wafer project and the construction of phosphor and related equipment manufacturing, thereby completing the industrial chain coverage from epitaxial wafers, chips, packages, and terminal applications. Expand production capacity. At present, the company is advancing toward the goal of LED top three companies.

Since the implementation of the industrial upgrade in 2009, Fortune Electronics has basically realized the vertical integration of the upper, middle and lower reaches of the LED industry chain (except for the epitaxial wafer technology), and has only learned the production of the quaternary series of chip development and packaging, and it has been further established today. LED lighting products in the scale of production lines, while developing a series of proprietary LED lighting applications, and in the market development and sales to achieve a leap-style development.

However, it cannot be overlooked that, due to the lack of epitaxial wafer technology and limited production capacity, the company is not only unable to complete its sales target, but also the profit from product sales is almost amortized by financial expenses, equipment depreciation, and management fees. Fortune Electronics wants to surpass the domestic LED enterprise with a considerable scale, realize sales performance of hundreds of millions or even billions, reach an ideal (15-20%) profit margin, and realize the establishment of a domestic LED company in the next two years by the municipal Party committee and municipal government. The first five, the first three years of chip companies to achieve the goal of listing, must deepen industrial upgrading, optimize the industry and talent structure, continue to expand production capacity, enhance competitiveness in all directions.

The bottleneck of Fortune Electronics is that its production capacity and output value are too small to meet market demand. To this end, Fortune Electronics has embarked on the implementation of the epitaxial wafer project and the construction of phosphors and related equipment manufacturing, thereby completing the industrial chain coverage from epitaxial wafers, chips, packages, and terminal applications, and expanding production capacity.

On the basis of the original foundation, Fortune Electronics has developed and produced downstream products while making chips. Currently, there are more than 100 kinds of mature LED products, which are applicable to urban roads, industrial and mining, commercial and residential buildings, airports, subways, and venues. , port lighting and urban large-scale LED lighting art projects, has successfully entered the Zengcheng Automobile Industry Zone, Guangzhou Metro, Shenzhen Metro, Wan Shen Expressway, Dongguan Guangcai Road and other demonstration projects. Today, Fortune Electronics has nearly 1,000 long-term customers and its business scope covers Guangdong, Hunan, Tianjin, Inner Mongolia, Shanxi and Shaanxi.

In addition, Fortune Electronics attaches great importance to cooperation between industry, universities and research institutes. It has established good cooperative relations with Shanghai Jiaotong University, Huazhong University of Science and Technology, South China University of Technology, South China Normal University, Guangdong University of Technology and other universities, and has achieved the sharing of human resources and technical resources. Next, Future Electronics will set up a research team in the fields of basic materials, MOCVD equipment technology, epitaxial wafer technology, GaN chip technology, quaternary chip technology, packaging technology, and applied product technology to make it a The real R&D platform takes full advantage of the LED field commanding heights.

The goal of Future Electronics in the near future is to form a large industry development pattern with “application first, chip-based, and extension as sources” through five years of efforts to actively develop LED packaging and applications, LED chips and LED epitaxial wafer industrialization. In the three major areas, the vertical integration of upstream epitaxial technology, midstream chip technology, and downstream application technology is truly realized; the formation of a market structure with the focus of projects as the carrier and the “back-end assembly factory” as the expansion base radiates across the country to achieve enterprise development. Large-scale structure; At the same time, through successful capital operation, complete enterprise restructuring, optimize the management system, expand production capacity and product types, and promote the rapid and cost-effective expansion of the electronic assets of Fortune.

This year, Fortune Electronics aims to further develop its business with the aim of “intensifying industrial upgrading and expanding the two major corporate and industrial structures”. In the next few years, transformation and upgrading will remain the main theme of Fortune Electronics. I believe that in the near future, blessed electronics will be closer to the goal of the domestic LED top three companies.