Detong Optoelectronics: the pioneer of the LED niche market

[Source: Gaogong LED 's " LED Good Products" magazine March issue reporter / He Wei]

"For the chip factory, competition has always been international." An industry insider said in an interview with "High-tech LED" that overseas LED chip companies from the United States, South Korea and Taiwan have accelerated into mainland China in the past two years. The market, together with the number of LED chip companies in mainland China, is also at a stage of rapid growth. The global competition for the LED chip market in China has already begun.

Obviously, the market test is always cruel. On the one hand, the overcapacity of the industry has led to a sharp decline in chip prices, and the profitability of enterprises has declined rapidly. On the other hand, some enterprises that have just entered the chip industry have serious shortages of operating rates due to technical reserves, equipment matching, and capital chains. The embarrassing situation of production.

In the first half of 2012, Shanghai Lanbao Optoelectronic Materials Co., Ltd. was found to be out of business due to poor management, extension and chip equipment. It’s not just the chip makers that are at risk, but the consumable suppliers associated with them are also heart-wrenching.

"Our main customers are the major chip manufacturers. It can be said that it is a glory, a loss, and the upstream market is sluggish, which directly leads us to a bad day." Shenzhen Detong Optoelectronic Materials Co., Ltd. (hereinafter referred to as "German Nancy, the general manager of "Photoelectric", exclaimed.

Founded in 2006, Detong Optoelectronics is the first agent in China to provide equipment accessories and consumables for the LED and semiconductor industries. The company mainly represents South Korea's Dongjin photoresist series, US photoresist, LGPE photoresist and supporting electronic chemicals. The product covers the upstream, evaporation, yellowing and mid-stream grinding and polishing, and runs through the entire process of chip manufacturing.

Improve service capabilities

The development of LED technology is changing with each passing day, and the price of LED chips is declining every year. Enterprises are further controlling costs from materials and processes. These developments continue to lead to new market demands, and the future market is more demanding on both products and services.

In terms of products, distribution agents need to be able to provide the latest products and leading technologies of well-known brands in a timely manner. In addition, excellent service support is required, the goods are fully stocked, and the ability to deliver quickly is available to meet customers' needs for pre-development and small-volume production.

"This is also the direction that Detong Optoelectronics has been working hard." Nancy said that the company is currently the largest photoresist and polishing agent in Korea and the US FUTURREX.

The technology transfer is a step-by-step development. Often, some new products and technologies are transferred to Taiwan via South Korea and Japan, and Taiwan is introduced to the mainland. The first opportunity to seize the technology is to seize market share.

“In the critical period of seizing the market, whoever won the time, whoever outperformed the market.” Nancy said that the company will introduce the latest application technology and products from Taiwan to the domestic market in the first time to ensure domestic chip companies. Technically keep up with the international mainstream and narrow the gap with advanced foreign technology.

In addition to providing the latest products and leading technologies in a timely manner, stocking and distribution capabilities are also key to assessing dealer capabilities.

“It is a very important advantage to be able to fully and efficiently stock the goods for our customers. When the peers are backing up the stocks, we dare to put the products into the stock.” Nancy said that the company chose a niche market and the customer base is stable. With a stock of 4 to 5 million yuan, you can respond to your customers' needs at any time.

Because the distribution of chip manufacturers in the country is relatively scattered, the cluster effect is not obvious, which poses a great challenge to the distributor's supply chain.

“There is a gap between the inland infrastructure and the developed coastal areas, but customers still want to get the same or similar services from the distributors as the coastal areas.” Nancy revealed that the company has set up an office in Xi’an. Analyze the customer's purchasing habits and constantly increase the inventory to ensure that customers can deliver quickly when they need it.

On the basis of sufficient stocking, Detong Optoelectronics cooperates with major manufacturers in Japan, the United States, South Korea, Canada, Germany, Taiwan and other places to provide one-stop service for customers, develop some specific products or make some improvements.

"We know the needs of our customers, we are closer to our customers than the original ones." Nancy said that at present, the share of the company's LED chip equipment accessories and consumables market is more than 85%, and it has already occupied a certain market share in the LCD field. .

Unfinished , please refer to the March issue of Gaogong LED 's " LED Good Products" magazine.

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