Hengrui Zhida: Counterattack of domestic high-end packaging equipment

[Source: Gaogong LED's "LED Research Review" magazine February issue Reporter / Tang Guirong] At the end of 2012, test reports from several domestic listed companies let Shenzhen Hengrui Zhida Technology Co., Ltd. (hereinafter referred to as "Heng Rui Zhida") Chairman Chai Yong’s eyebrows stretched out. “Our self-developed solid crystal machine has finally been recognized by customers. It is widely reflected that the performance of the equipment can compete with ASM.”

At present, in the high-end solid crystal machine market in mainland China, ASM accounts for more than 90% of the market, but behind the figures is the price of “unattainable”. According to a report from the High-tech LED Industry Research Institute, the price of ASM's solid crystal machine is 20-25 million yuan, while the price of similar domestic equipment has dropped to about 130,000 yuan, and the price difference between the two is more than 50%.

"The reason why ASM's solid crystal machine has a high market share in the domestic market is mainly because the technical strength of the other side is really strong. In addition, there are many aspects that are worth learning and reference." Chai Yong said frankly that domestic manufacturers are due to the core. The technology is not mastered enough and can only compete in the low-end market. "If the technical strength of domestically produced equipment can meet the needs of domestic mainstream packaging manufacturers, the core position of replacing imported equipment is just around the corner.

The reporter learned that Chai Yong also served as a director of the China Printed Circuit Board Industry Association. He has been engaged in the electronic equipment and manufacturing industry for 18 years. He has served as the head of SEG Samsung Equipment Department. In 2004, he entered the company from the director of Huafa Electronics Circuit Board Factory. Electronic Technology Shenzhen Co., Ltd., as the general manager, manages the sales team of more than 130 people, with an annual turnover of more than 800 million Hong Kong dollars.

In October 2011, Chai Yong founded Hengrui Zhida with more than ten years of research and development experience. “The microelectronics and semiconductor industries are highly dependent on imported equipment. The value of imported equipment is more than 50 billion yuan per year. This is a huge market and profit margin.”

After a year of experience, Hengrui Zhida's solid crystal machine has been tested in the market, providing personalized equipment solutions for international packaging manufacturers, and has been recognized by some large customers, occupying a place in high-end packaging equipment.

"We have been learning from ASM all these years, and we hope that domestic packaging manufacturers can use more cost-effective equipment." In Chai Yong's view, although the LED packaging market is rather chaotic, the medium and large enterprises have been developing steadily. With the proposal of lowering the cost of LEDs, high-end domestic packaging equipment will inevitably enter the selection of domestic mainstream packaging enterprises.

Digging deep into market opportunities

It is understood that LED packaging equipment is mainly divided into front-stage solid crystal machine, wire bonding machine, dispensing machine, and rear section optical tape, oven machine and so on. GLII statistics show that the demand for solid crystal machines in China is between 5,000 and 8,000 per year.

Among them, due to the high technical requirements of the front-end equipment, the domestically-made equipment is basically in its infancy. Especially for solid crystal machines, domestic technology still stays at the first and second generation levels, and the high-end LED solid crystal machine market is basically monopolized by ASM and other manufacturers.

However, this phenomenon has made Chai Yong excited. Although ASM has an absolute market share, its price is much higher than that of domestic equipment, and the payment method is very strict. “This means that Hengrui Zhida can easily enter the high-end market by making the equipment performance consistent with ASM.”

In fact, the current cost control and cash flow has become the "heart disease" of domestic packaging enterprises, and the expansion of production capacity to enhance the scale effect is also a hurdle in front of everyone. At the same time, with the sharp decline in the price of LED lighting products, how to quickly and effectively reduce costs has become the consensus of everyone. Domestic packaging equipment has undoubtedly become the first choice for packaging companies.

In 2012, Hengrui Zhida took the lead in launching the C8 series of fully automatic LED solid crystal machines with a speed of UPH22.5K, exceeding the level of international manufacturers. “This equipment is the fastest in its kind in the world. It can increase the working efficiency by 15% per unit time and save customers 15%-20%.” Chai Yong said that the performance is even better. Technology and competition with international companies can save customers more costs.

In addition, taking the customized product route is also an opportunity for Hengrui Zhida. Because ASM has more standardized products, when customers require individualization, they often cannot meet the demand. Heng Rui Zhida's other strategy to seize the LED packaging equipment market is to take orders from ASM and make customized equipment.

In January 2013, Hengrui Zhida gave Taiwan Dongbei a sample package that was customized by the other party. Chai Yong said that orders that have been leaked by international companies are already a big market space.

For qualitative equipment, Chai Yong also has his own account: Dongbei, as an international packaging manufacturer, will also run ahead of the industry. "Catch the Dongbei, it is possible to seize the wind vane of the packaging equipment market."

Perhaps it was the potential blind spot in the market. Another founder of the company, Dagong, began to form a technical team quickly. Dagong has served as the equipment supervisor of SONY Taiwan, the head of R&D department of ASM, and the technical director of Nitto Group. He has more than 20 years of experience in research and development of advanced intelligent equipment, and has semiconductor production, packaging, inspection technology and LCD screen display. Domestic leading technology in assembly process.

In 2012, Hengrui Zhida became active in the LED packaging market after applying for several patents. "In a truly good company, sales must be steadily increasing." Chai Yong revealed that the company's equipment has been sent to many large manufacturers for testing, and there are several intention orders, it is estimated that the annual contribution will exceed 1 100 million yuan.

Give play to the localization advantage

According to GLII statistics, there are currently more than 200 LED packaging equipment manufacturers in mainland China, and there are nearly 2,000 packaging companies.

"At present, most small and medium-sized packaging companies mainly focus on price, and the equipment market is also very chaotic, including the phenomenon of second-hand machine refurbishment, loan period, and cost, which makes you unimaginable." Chai Yong commented on the market status of packaging equipment.

"Our positioning is high-end packaging equipment, and the target is the top 20 LED packaging companies in mainland China and Taiwan." Chai Yong said, "When everyone is fighting price wars, we must pay more attention to performance improvement. First on the materials. We will carefully select and select imported materials, and we must have quality assurance for any link. Take the motor device as an example, Taobao is priced at 30 yuan, but we will choose to sell for 200 yuan. Schneider products and let them supply according to our requirements."

The reporter learned that at present, Hengrui Zhida's C8 solid crystal machine has completed the research and development and entered the mass production stage, and won the "2012 Hong Kong Industrial and Commercial Machines and Machine Tools Design Award". According to the customer's test results, the equipment can run 9.5K-12.5K per hour under the premise of ensuring product stability, while the average speed of similar equipment in the market is only 6K-8K.

At present, the equipment has been tested and approved by more than ten large LED package manufacturers, including several listed companies.

In fact, Hengrui Zhida's goal is not only to grab the high-end LED solid crystal machine market. According to Chai Yong, the company's product line plan covers most of the high-tech equipment involved in LED packaging processes such as die bonding, wire bonding, and dispensing, and plans to introduce high-quality gold ball bonding machines in the first half of 2013.

GLII statistics show that the market demand for solid crystal machines and wire bonding machines in LED packaging equipment accounts for the largest proportion, totaling about 46%-50%.

Because the wire bonding machine involves many problems and the technology is very complicated, the current high-end equipment is mainly led by foreign manufacturers such as K&S and ASM.

“The wire bonding machine we developed has two main schemes, one of which is the equipment that pushes the technology close to K&S (the performance reaches 90%-95% of K&S, but the price is only 50%); the other scheme It is the technology that pushes the European factory, and the performance can reach the international first-class level.” What puzzles Chai Yong is how to bring these devices to the market, because domestic packaging manufacturers often have doubts about domestic equipment companies, and related new equipment. The test and trial period is also longer.

“With hard technology and products, what we have to do is to provide the service advantages of local brands.” Chai Yong is still full of confidence in Hengrui Zhida’s technology. “Our next step is to provide better after-sales service and achieve local Advantages. The only object we learn is ASM, they are the boss, we follow the second."

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