Foxconn's big action layout LED enclosure orders are correct

(Text / Gaogong LED reporter) On January 6, Foxconn Technology Group's optoelectronic industrial base officially settled in Nanyang, Henan, which is the third project base of the global IT foundry giant in Nanyang. According to the plan, the base will mainly produce and sell LED energy-saving display and LED lighting products developed by Foxconn.

According to the reporter's understanding, the first phase of the project will invest RMB 150 million, with an annual output of 300,000 sets of lamps, and the annual sales income will reach RMB 2 billion. At the same time, there are 6 local cooperation projects, including LED cooperation projects; urban road LED street lighting energy-saving contract energy management cooperation project; city urban LED street lamp contract energy management service project; Foxconn, China Optical joint venture project; SMT technician training Project; mold technician training program.

This is another big LED project invested by Foxconn in the Mainland after Wuhan, Chengdu and Hengyang.

"While Foxconn has invested in LEDs in many parts of the country, you can't see them in the market." Gaogong LED reporters surveyed the Foxconn LED project, many LED manufacturers to high-tech LED reporters disclose.

However, according to the reporter, Foxconn's LED business revenue is mainly from local government orders, brand OEMs and lighting replacement at Foxconn factories. In addition, Foxconn is also starting to build its own brand and sell it in some large supermarkets and home towns. From the project case display page of Foxconn's official website, we have seen nearly 150 large and small engineering projects including Yangtze River Tunnel, Hyundai Motor Plant, Shenhua Group, Guangzhou Baiyun Airport, Chengdu Shuangliu International Airport, and Mengniu Liquid Milk Factory.

"In fact, the Foxconn LED project entered the capital operation stage very early." Xie Yongjun, chairman of Jiuzhou Optoelectronics, told reporters that with the development of LED lighting, Foxconn is gradually turning its LED focus to the inland and launching a circle in the country. Ground movement.

Enclosure orders are correct

Since Foxconn was forced to “raise”, the company’s LED project was naturally transferred to the mainland along with the plan of the group’s overall inland migration.

Shortly after the official signing of the contract with the Nanyang government, Zhengzhou City also decided to allocate 7,500 acres to the Foxconn in the aviation industry park, some of which were used in the LED production line.

Li Huanqiang, marketing manager of Huahai Group, said that Foxconn invested in LED projects, not for investment profits, but for land preferential policies. "Foxconn has been doing LED display for three years, but it has not made much progress in the market, and its technology is still stuck in the P2.8 three-in-one labeling stage." He said that Foxconn has a huge real estate business in China. With LED as the project, you can quickly get the land support of local governments, which is undoubtedly the biggest block of the interest chain.

This is also reflected in Foxconn's LED project in Wuhan.

An industry insider who did not want to be named told reporters: "Foxconn's inland migration plan has become a bargaining chip for the capital kidnapping government. Guo Taiming deliberately released the local government to compete for the Foxconn project, so as to put pressure on other target areas, and finally The result of the game is to see which local government subsidies are most favorable."

Land is undoubtedly the biggest cake to entice Foxconn, and the investment in order, has become a wonderful means for Foxconn to flood LED performance.

"Do not participate in market competition, do not worry about product quality, Foxconn enjoys the fruits of government projects." According to a researcher who worked at Foxconn for many years, the reporter revealed that in the company's engineering projects, other orders are small orders, and government projects The largest amount of orders and the largest profits.

In addition to entering the city of Nanyang, Foxconn has made some achievements in addition to the land acquisition. According to the reporter, in addition to the above mentioned several LED cooperation projects can be seen. There are more than one million street lamps in Henan Province. If all of them are replaced by LEDs, the market can be described as huge. Therefore, investing in Nanyang, it is not difficult to see Foxconn's ambitions for the Henan LED streetlight market.

It is not a special case of Foxconn to launch a circular motion by LED.

According to the reporter's understanding, after some major international companies invested, often in actual production, the progress is not obvious, and the results are not as expected. What is more shocking to the reporter is that there are some empty shell project bases on the market. According to a person familiar with the matter, when there is an LED government project, the manufacturer will transfer the products from other regions, or simply assemble them in the local area to fill the facade. Some even do it by directly ordering materials from other manufacturers and then doing simple assembly on their own.

Li Huanqiang said that the main purpose of these international large-scale investment LEDs is not to rely on LEDs to generate profits, but to launch a enclosure campaign in the country on the grounds of LED projects, and obtain government orders and land preferential policies.

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