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Mainland LED companies frequently worry about overseas mergers and acquisitions
Following the deployment of overseas home appliance manufacturers in China, including Hisense’s acquisition of Sharp North American trademark rights, TCL’s acquisition of Sanyo, and Skyworth’s acquisition of Toshiba’s Southeast Asian LCD TV brand, it’s revealed that LeTV will enter VIZIO. In the case of the weak growth of LCD TVs in China, Chinese brand manufacturers have squandered big money. Recently, they have rushed to buy VIZIO, a North American LCD TV brand. In addition to Apple and Google, the Chinese manufacturer Also full of interest. However, according to foreign media reports on the 10th, VIZIO will eventually be funded by China LeTV (Letv) for a purchase of US$1 billion to US$1.5 billion, adding another case for Chinese manufacturers to purchase global home appliance brands. Following the deployment of overseas home appliance manufacturers in China, including Hisense’s acquisition of Sharp North American trademark rights, TCL’s acquisition of Sanyo, and Skyworth’s acquisition of Toshiba’s Southeast Asian LCD TV brand, it’s revealed that LeTV will enter VIZIO. In the case of the weak growth of LCD TVs in China, Chinese brand manufacturers have rushed to make big money, and their attempts to target overseas market opportunities are obvious. It is expected that if LeTV enters the VIZIO, the global LCD TV sales will surpass SONY in one fell swoop, reaching 14 million units of sales, and entering the top 5 global thresholds. In the face of domestic manufacturers actively pursuing international brands or companies to expand overseas markets, Taiwanese companies expressed concern that mainland companies are actively expanding overseas through mergers and acquisitions. Although they do not affect the supply chain in the short term, they may cause shuffling in the long run. Although the sale of the Philips Cutting Lighting Division was blocked, the OSRAM lighting division sale may cost Chinese manufacturers, and the Vizio will be won by LeTV; overseas mergers and acquisitions will cause major changes in the supply chain. Concerns were expressed about this, mainly because Taiwanese factories abandoned the mainland market in order to avoid price competition, and the mainland brands switched to the local LED supply chain, which also allowed Taiwanese factories to switch to overseas markets. Taiwanese manufacturers said that LeTV's successful acquisition of Vizio is expected to have no major impact on the short-term supply chain. Among them, LED backlights will still be mainly supplied by Taiwanese manufacturers, mainly because Vizio sells the North American market, and the region attaches importance to patents, so it is in patent containment. Under the circumstance, it is expected that the supply chain of the Taiwanese factory will still prevent the expansion of the land-blocking plant. In the short term, it will continue to focus on the patent market in Europe, the United States and Japan, and avoid the competition in the mainland. Although it is still possible to prevent the land-blocking plant from going out in the short term, it is an indisputable fact that manufacturers sniff out that the mainland plant is actively expanding overseas. Although there is still patent anti-blocking, after China actively buys the brand factory, the next step is bound to be next. Through the acquisition and purchase of patents, the city will acquire the patents through mergers and acquisitions, and then market the world with international brands, which will effectively stimulate the global market. The Taiwanese factory said that although the mainland is actively expanding overseas with its financial strength, as the LED technology continues to evolve and the mainland has been in a large market with a large supply and supply demand, Taiwanese factories must develop niche applications with technological strength, with a small variety of products. The operation mode avoids direct competition with the land factory, and the international brand cutting and selling is also a warning for the Taiwanese company to transform.