Jiuzhou Photoelectric Zhang Tiezhong: Using domestic chips to make high-end packaging products

This article was published in the February issue of "High-tech LED" magazine

Use domestic chips to make high-end packaging products


—— Dialogue with Zhang Tizhong, General Manager of Jiuzhou Optoelectronics

China's LED packaging production accounts for 70% of the world's total, but so far there is no listed company, and it is more thought-provoking. Why is China's packaging companies not doing much? What is the underlying reason behind it? Jiuzhou Optoelectronics Co., Ltd. is one of the largest LED package manufacturers in China. The company also has layouts for display and lighting. On January 11th, "High-tech LED" reporter visited the production base of Shenzhen Jiuzhou Optoelectronics. Mr. Zhang Tiezhong, the general manager of Jiuzhou Optoelectronics, shared with us the company's market strategy and views on the above issues.

Mr. Zhang Tiezhong, General Manager of Jiuzhou Optoelectronics

    Complete layout on the LED industry chain

    High-tech LED : When we mentioned Jiuzhou Optoelectronics, we would like to think of display screens, packaging, street lamps, etc. It seems that Jiuzhou Optoelectronics is doing everything. How do you layout in the industry chain?

    Zhang Tiezhong : Jiuzhou Optoelectronics has two production bases, one in Shenzhen and one in Mianyang. The Mianyang base is mainly responsible for LED lighting, landscape lighting and high-power LED packaging products. The Shenzhen base is doing small power packaging, home appliance indication and commercial aircraft lighting modules. We built a 136,000 square meter industrial park in Guangming New District, Shenzhen. Jiuzhou Optoelectronics has five factories, three of which are packaged, one for LED display and one for lighting. In 2008 and 2009, our packaging products are mainly used for display screens. The structure will change in 2010 and the share of lighting modules will increase. Our sales target for this year is to break through one billion.

    It is necessary to emphasize that the purpose of our display is to verify our packaged products. We will not make this business very large, mainly facing middle and high-end customers. We sold the good lights to display manufacturers such as Zhou Ming and Lian Chuang Jianhe (Lianjian Optoelectronics). In the LED display industry, the LED module is very important. We first use the module on our own display to verify the reliability of the product. If it is ok, we will sell it to the customer. Otherwise, the quality of the product will be wrong. For us. Big companies will be catastrophic.

    High-tech LED : Now Jiuzhou Optoelectronics has a certain scale. When will Jiuzhou Group get involved in the LED industry? What are the milestones in the development process?

    Zhang Tiezhong : Jiuzhou Group began to get involved in the LED industry in 2004. At that time, the lumen efficiency of LED was still very low. At the beginning, it was a dot matrix module and a digital tube. Jiuzhou Group is a military industrial enterprise. In 2006, it decided to focus on the development of the LED industry and develop it into the company's primary industry. In 2007, Shenzhen invested twice in equipment and established Sichuan company. In 2008, Sichuan's production base was officially put into use. In the same year, it obtained the research work of two national 863 projects. In 2009, it obtained the research work of the Shenzhen Municipal Government's major scientific and technological projects. Metro lighting in Hong Kong, the world's first successful use of the release, outdoor street lighting products thermal design to obtain national invention patents, display device products for China's first longest high-speed railway project, the company signed a strategic cooperation agreement with Philips and Philips will Become one of our shareholders.

    High-tech LED : According to the current layout of Jiuzhou Optoelectronics, LED chips and lighting are still relatively lacking.

    Zhang Tiezhong : In terms of chips, we have participated in Diyuan Optoelectronics in Wuhan. The company's chips are mainly used for high-power applications. In terms of lighting, we signed a strategic cooperation agreement with Philips, and the addition of Philips, a lighting giant, will greatly enhance our strength in this area. Jiuzhou Optoelectronics also acquired a lighting company in Mianyang. At present, Jiuzhou Optoelectronics' business has completely covered the LED industry chain.

    Targeting the high-end display market

    High-tech LED : At the Shenzhen Optoelectronics Exhibition, Jiuzhou Optoelectronics' display screen left us a deep impression. You just said that the display screen will not be made very large. Now Jiuzhou is in the display technology. How is the strength?

    Zhang Tiezhong : Although we will not make the display screen very large, but the product positioning is still positioned in the middle and high end. Our driver ICs and power supplies are imported. Our display case on the B building of Shenzhen Airport shocked the industry and performed very well in terms of brightness and clarity. The LED display used by China Telecom is made by Jiuzhou Optoelectronics. In 2009, the screen used by President Hu Zhaigou’s speech was made by Jiuzhou Optoelectronics. Many of our cases were not as vigorously promoted as some of our peers.

    High-tech LED : Which direction do you think LED display will develop in the future?

    Zhang Tiezhong : There is no doubt that the screen will become bigger and bigger, the brightness will be higher and higher, and the dot distance will become more and more dense. If you are indoors, the projector may be replaced in the future, and the projector will change a lamp for almost a year and a half. At present, there is still room for improvement in the domestic display screen. For example, the edge of the screen made by foreigners is a smooth arc, which is very user-friendly. We have done the alien and rotating screens, but there is not a lot to do.

    Use domestic chips to make high-end packaging products

    High-tech LED : The package is the core business of Jiuzhou Optoelectronics. What achievements have been made in this regard?

    Zhang Tiezhong : I just said that Jiuzhou is good at packaging. Jiuzhou's packaging products use commercial aircraft, high-speed rail and other places where lighting requirements are very high. Jiuzhou Optoelectronics Co., Ltd. is the only designated supplier of LED lighting for large domestic aircraft projects. The world's first rail car lighting in the Hong Kong MTR is a collaboration between Jiuzhou Optoelectronics and Cree. We are currently developing some technologies that can compete with well-known foreign LED package manufacturers. It is expected that relevant information will be released in May 2010 and will surprise you.

    High- tech LED : Although China's packaging industry accounts for 70% of the global market share in production, so far there is no listed packaging company in China. What do you think is the main problem?

    Zhang Tiezhong : The domestic packaging industry still lacks in terms of technical content and experience accumulation. It is too conservative and lacks a leader. At present, many packaging companies are private enterprises, lacking long-term vision, quick success in business, and no solid foundation in basic skills. As a state-owned enterprise, we are relatively open. When guests come to our factory, they will generally open their visits. If you want to be the industry leader, you have to have certain metrics.

    Many people say that state-owned enterprises are not flexible enough, but state-owned enterprises have many advantages. For example, we have a complete set of processes for a project, to do a full range of project demonstrations, to purchase and verify various equipment. Jiuzhou Optoelectronics was in a loss stage from 2004 to 2007. why? Because we invest a lot, mainly in instrumentation, production equipment and talent reserves, we will not focus only on immediate interests.

    High-tech LED : It is understood that many LED displays now use domestic chips. What is the situation of Jiuzhou? Can the quality of domestically produced chips be guaranteed?

    Zhang Tiezhong : Our packaging products are very rich. Jiuzhou is the largest customer of Silan Mingxin. The chips produced by the company are mainly used for display screens. Other suppliers such as Huacan and Sanan also use some Taiwanese chips. Currently in the field of LED display, the gap between domestic chips and major manufacturers such as Nichia is not large, and after a considerable period of verification, it proves to be reliable. Most of us use domestic chips.

    Join hands with Philips to jointly develop the Chinese market

    High-tech LED : In November 2009, Jiuzhou Optoelectronics and Philips signed a cooperation framework agreement. Where will the two companies cooperate and what kind of results are they expected?

    Zhang Tiezhong : We will have very close cooperation with Philips. Philips will invest in Jiuzhou Optoelectronics, and it is possible to promote Jiuzhou Optoelectronics' listing in the future. At present, Jiuzhou Optoelectronics has already met the conditions for listing.

    Jiuzhou Optoelectronics will cooperate with Philips to develop the post-disaster reconstruction market in Sichuan. We have all won the LED street lights in Mianyang, and we have also won all the landscape lighting in Beichuan. We also won all the lighting projects in Neijiang, Suining and Guangyuan in Sichuan. In order to ensure the high level of design and high specifications, Philips is involved in the design of lighting.

    Do not agree with the large-scale installation of LED street lights now

    High-tech LED : Jiuzhou won all the LED streetlight projects in Mianyang. How is Jiuzhou Optoelectronics performing in other regions?

    Zhang Tiezhong : Our LED street lights are installed in North China, East China and South China, and are officially installed, not a demonstration road. Of course, the amount of Mianyang is the largest, and it is probably installed at 5,000. A public survey of the project was conducted and generally reflected good.

    We applied for an invention patent in the heat dissipation technology of LED street lamps, and invention patents are rare in the industry. The application began in 2006 and was officially approved on December 30, 2009.

    High-tech LED : In the currently installed LED streetlight project, government procurement has a strong localization tendency. For example, Weifang's LED street lights have given Zhongweiguang Electronics. What do you think of this problem?

    Zhang Tiezhong : This problem does exist now and is also a Chinese characteristic. However, I believe that with the development of the industry, there will be only a few powerful companies left. It must be a big wave of sand washing, the product is spelled, and the service is the fight. I think this industry is very similar to the TV industry in the past. In the past, there were TV factories all over the country. What peacocks, West Lakes, etc., have now disappeared silently. I don’t know where they are. Now who is still regional, the market only agrees. product.


    High-tech LED : Many LED streetlight projects currently use EMC payment methods. Do you agree with this approach?

    Zhang Tiezhong : I think that if we want to promote EMC on a large scale, we must have the following conditions: 1. LED street lights are truly energy-saving and environmentally friendly. The energy-saving rate should reach 30-40% or even 50%. 2. The customer's integrity must be improved, especially In terms of payment of goods, it is necessary to bring a lot of pressure to the LED street lamp enterprises; 3, LED street lamp manufacturers must also talk about integrity, and really close the quality and do the after-sales service. Only when these three points are completed, EMC can be successfully implemented to achieve the results of the three parties' profitability. At present, these three conditions are not yet available, so I do not agree with the large-scale installation of LED street lights.

Our reporter Zeng Cong

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