Ai Siqiang: Paying attention to the Chinese market, not afraid of the wave of localization

[Source: "High-tech LED - Research and Review" April issue / Hu Yanling] On March 16, the German LED equipment manufacturer AIXTRON held a new training and demonstration center opening ceremony, the center is located in Suzhou Institute of Nano and Biology (Nano Institute). Not long ago, Ai Siqiang announced a strategic alliance with Minsheng Financial Leasing Co., Ltd. (MSFL) to jointly develop the MOCVD equipment financial leasing market in China.

"Our significance and commitment to China is to provide the key equipment technology needed for the Chinese LED lighting market with the advantages and expertise of Ai Siqiang Technology," said Paul Hyland, President and CEO of Ai Siqiang. He revealed to Gaogong LED that the current market share of the Chinese market is 55%, which has become the company's largest source of business. It is no wonder that Ai Siqiang continues to expand its service scale in China.

The downturn in the LED market in the second half of 2011 allowed Ai Siqiang's customers to delay orders but did not cancel them. This also allowed Ai Siqiang to generate 200 million euros of equipment inventory, but this did not affect 2011's business revenue in 2011. The second highest position. "Ai Siqiang is determined to be the leader of technology. There are only two or three in this field, and we are undoubtedly one of them." Paul Hyland said. For the Chinese equipment boom, he obviously did not show much fear.

Pay attention to the Chinese market
High-tech LED: At present, the LED industry is in a downturn. Why did Ai Siqiang choose to set up a training center at this time? What is the operation mode of the training center?

Paul Hyland: At present, there are more than 450 MOCVD systems in the Chinese mainland market, and more than 200 sets were added last year. With such a large-scale expansion, our customers need the guidance of professional knowledge, which is the original intention of our training center.

Future experts in MOCVD in China will receive training on the latest semiconductor technologies and manufacturing processes. Austin's latest generation of CRIUS® II-XL and AIX G5 HT equipment will be used in the training courses set up by the center, with a total area of ​​350m2 in clean rooms, laboratories and training classrooms. Our new customers can receive training services for free in the purchase agreement.

Of course, with the expansion of market demand in the future, we do not rule out the training of the majority of engineers in the mode of enrollment.

High-tech LED: At the end of last year, chip manufacturers madly dumped goods and digested certain stocks. By the beginning of this year, the pressure on chip companies was slightly smaller, and the market began to show some signs of recovery. How do you see the changes in the industry?

Paul Hyland: Indeed, we have also felt signs of a recovery in the market in the past few months. We have observed that some of the lower-end market demand of Taiwanese and Korean companies in China has started to rise, and the capacity utilization rate has reached 50%-60%.

At present, the penetration rate of LED lighting is less than 5%, and the industry will have a big growth. We can see that there are still many investments pouring into this industry, and everyone is very optimistic about the development prospects of this industry.

The next five years will be a critical period for the development of LED market and MOCVD equipment related products. During this period, the price of LED bulbs and other lighting products is expected to fall sharply, and the demand for products will rise sharply. The demand and price of MOCVD will also rise with this trend.

Inventory squeeze profit margin

High-tech LED: We learned that Ai Siqiang's revenue in the fourth quarter of last year was 140 million euros, a 38% decrease from the same period last year, and a loss of 10.9 million euros; gross profit margin decreased by 15 percentage points to 38% compared with the same period last year. In 2011, revenues shrank 22% to 611 million euros, net profit fell 59% to 112.9 million euros, and gross profit margin fell 15 percentage points to 79.5 million euros. Excuse me, is the inventory depreciation in the fourth quarter counted in it?

Paul Hyland: We did the fourth quarter's adjustment, and our 2011 pre-tax profit was around 25%. Of course, these inventory functions have no effect and can be sold, but it takes a little while.

Although the performance has decreased, last year the company's operating income reached the second highest level in the company's history, and our actual shipments were the same as we expected. In the second quarter of 2011, customer orders reached the highest level in history, but in the third quarter of 2011, with the release of negative market information, customers began to suspend orders, but orders were not cancelled. The delay in the order also caused us 200 million euros in inventory.

At present, the industry is in the digestive period, and we are doing our best to help our customers tide over the difficulties. We need time to wait for the recovery of the industry. The current problem is not whether it will pick up, but when it will pick up. We are focusing on long-term development. At present, we are investing 60 million euros in Germany to establish a research and development center, which is also optimistic about the development of the industry.

High-tech LED: How much does the performance of the Chinese market account for the company's business? How do you view the contribution of the Chinese market to the company?

Paul Hyland: Our significance and commitment to China is to provide the key equipment technology needed for the Chinese LED lighting market with the advantages and expertise of Ai Siqiang Technology. 90% of the company's goods are sent to Asia, South Korea, Taiwan, China is the company's three largest customers. In 2011, the Chinese market accounted for about 55% of the company's business. The company's MOCVD revenue in China reached 350 million euros and net profit was 50 million euros.

In February of this year, we established a strategic alliance with Minsheng Financial Leasing Co., Ltd. (MSFL) to jointly develop the MOCVD equipment financial leasing market in China. Our goal of working with people's livelihood is to support and maintain long-term financial products in China as long as they are striving to become global companies in this emerging market.

Air Filter: Prevents harmful debris, dirt and contaminants from entering your engine.

Engine protection is the name of the game.So is engine performance. Acceleration can improve up to after an old, dirty air filter is replaced. Our Pennzoil air filters are engineered to trap harmful contaminants that can damage your engine.

Old and dirty air filters lead to reduced engine power, decreased throttle response, weaker acceleration and increased engine wear. Sounds ugly. Well, it is, and you should have it replaced when it gets bad.


Air Filter

Automotive Air Filter,Car Air Filter,Air Filter Cartridge

Donguan Bronco Filter Co., Ltd , https://www.broncofilter-cn.com