Hongqi Technology: Grab the mainland market

High-tech LED network news (Reporter Hu Yanling) Hongqi Technology is one of the top eight packaging factories in Taiwan, with a monthly packaging capacity of 2000 KK. In June of this year, Hongqi Technology and TCL established a joint venture packaging factory in Huizhou, officially taking the first step into the mainland. "Our goal is to replicate the successful experience of Hongqi Technology in Taiwan to the factory in Huizhou." Yang Qizhou, manager of Hongqi Technology Business Department, told Gao Gong LED reporter.

Hongqi Technology is affiliated to Hongjiu Group, which has LED picking, testing and cutting services. At the same time, it is working on the development of LED lamps and modules, and advocates that packaging devices should be close to the application concept. "We focus on package orientation and adopt a strategic cooperation with other partners to form a medium-to-high-end product line. The research and development of downstream applications is only to better understand the needs of customers." Yang Bingzhou said.


Across the upper, middle and lower reaches of the industrial chain

High- tech LED: Hongqi Technology has been active in the mainland market since this year. Before that, everyone’s impression of Hongqi may only stay in Hongqi, one of the top eight packaging factories in Taiwan. Please briefly introduce the development process of Hongqi.

Yang Bingzhou: We have two factories, Hsinchu Xiangshan Plant with a capacity of 1500 KK/month and Hsinchu Innovation Factory with a capacity of 500 KK/month. The main products are backlight, display, lighting and indicator light. We only made patch LEDs at the beginning, which was rare in the industry at the time. At that time, only Yiguang and Hongqi could provide larger capacity. So we don't need to look for customers, customers will come to us. The mainland market we first encountered was the backlight of white-brand mobile phones. In this field, Hongqi occupied a large market share. In the past two years, we have successfully entered the rise of the TV backlight market, and it is one of the first companies in Taiwan to enter the Japanese market. At present, TV backlight products account for 20-25% of the company's sales. This year, Hongqi began to lay out the Chinese market. In June, we cooperated with TCL to establish a packaging factory, mainly providing LED backlights for TV backlights.

High-tech LED: What was the original intention of choosing TCL cooperation?

Yang Bingzhou: There is a good niche for cooperation with TCL. He can provide us with a good seaport. TCL has a stable market share in the Chinese market. We can ensure that such a joint venture will have a good revenue. This is a good first step.

The joint venture packaging factory, whether it is the core equipment, R&D personnel or even the main cadres of decision-making, is assigned by Hongqi. It can be said that the successful experience of Hongqi is copied to the mainland. TCL has half of the shares, the first can successfully profit, the second can solve the supply problem, the most important thing is that in the future TCL can promote the production of this packaging plant to the lighting market, of course, that is the next stage.

Gaogong LED: It is reported that in the initial stage of the cooperation negotiations, Hongqi met a very strong competitor. What advantage does Hongqi win? Where is the core competitiveness of Hongqi?

Yang Bingzhou: Our good competitive advantage, Hongqi Technology belongs to Hongjiu Group, Hongjiu Group has the world's largest LED picking, testing, cutting foundry ------ Jiuyuan Electronics; Jiuyuan Electronics' holding subsidiary Control Automation is a professional optoelectronic device design and manufacturer that provides packaging equipment and provides all packaging equipment except wire bonding machines.

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