Taiwan stock Wang Daliguang sued South Korea's Samsung Electronics and Yujing Optoelectronics for patent infringement of . After more than three years of litigation, settlement was announced yesterday (1). The market is optimistic that Largan's settlement with and Samsung will help Largan obtain licensing fees or further win Samsung mobile phone orders. Since then, it has held orders from Apple, Samsung and Chinese mobile phone brands, and has firmly established itself as the world's leading mobile phone lens.
Largan's infringement lawsuit was a complete victory, but due to the confidentiality agreement, both parties did not disclose the content. U.S.-based foreign analysts pointed out that there is no doubt about Largan's technological leadership and that the patent litigation has come to an end for the time being, which will help eliminate external concerns about operational variables.
Largan started a patent war in 2013. After first filing a lawsuit against Yu Jingguang for infringement of mobile phone lenses in June, it went to California in November to sue Samsung Electronics and its US subsidiary for infringement of smartphone Galaxy Note 2 lenses. Largan has six optical lens patents and demands compensation from Samsung. Due to the huge disparity in market value between the two companies, Largan sued its customers in an effort to stop the rival, which shocked the industry. At the time, it was described as a battle of "small shrimps versus big whales."
Largan and Yujingguang are both the main suppliers of Apple iPhone lenses. According to outside interpretation, Largan launched a patent war that year, targeting the two major mobile phone brands Apple and Samsung. This will help Largan win more orders from Apple and counterattack. In addition to price pressure, Largan's , optical communication, and received orders from Apple and non-Apple. Only Samsung's mobile phones had a consistent manufacturing process and most of the lenses were homemade. Largan sued Samsung for infringement and settled, and Samsung was forced to release the order to supplement Largan's mobile phones. The last piece of the lens puzzle, further expanding the global market share.
market interpretation, the settlement reached between Largan Light and Yujingguang should be the result of the intervention of major customer Apple. Since the yield rate of Kangdazhi, a new Japanese factory that joined Apple's supply chain, was not as good as expected, Apple intervened to let the iPhone 7 lens supply chain Maintain balance.
It is understood that Largan holds a number of patents and patent applications in Taiwan, the United States, Japan, mainland China and Europe, and the total number of patents exceeds a thousand. Most of these patents are for lens design, and 5P (five plastic lenses) and 6P account for the majority. Patent barriers have become an important tool for Largan to expand its mobile phone lens territory.
In addition, Largan Guang also filed a lawsuit against Advanced Optoelectronics in 2013 for copyright infringement and theft of business secrets. Largan Guang said that the court is still in the process of hearing it. At that time, Largan Guang requested compensation of 1.52 billion yuan. Xianjin Guang responded yesterday that the first trial is still ongoing, and the determination and amount of damage compensation have yet to be clarified.
Largan's new factory with an investment of more than 20 billion yuan will be opened in the third quarter of next year. This "giant" in the lens industry will take advantage of its technological advantages. After the new production capacity is opened in the future, it will greatly widen the distance from its competitors. However, Apple's orders account for 40 to 50% of Largan's orders. Regardless of whether Apple's iPhone 8 will set off another wave of phone replacements next year, the receipt of Samsung orders will help Largan to spread risks and prepare for the long-term layout of the new factory.
Largan takes all orders from Apple and non-Apple. In addition to Apple accounting for 40% to 50%, the mainland market share is estimated to be 40%. Although Largan's patents against Samsung and Yujingguang are mainly 4P (four plastic lenses) and 5P patents, high-end models have been upgraded to 6P designs. However, external analysis shows that 6P is still the top flagship model. 5P is the main design for mass production. This time Largan has successfully reconciled with Samsung and Yujingguang, which will still be helpful for future orders.
In the third quarter, Largan's sales of iPhone 7 were ignited, and the yield rate of Japanese factory Kangda Zhi was lower than expected. Largan's production capacity has been highly fully loaded. As a result, its revenue has been steadily moving forward in the past three months, and it has been unable to grow significantly. Revenue in October was 5.073 billion yuan, a monthly increase of 2.4%, a new high in 11 months.
Largan CEO Lin Enping once said that the new factory is mainly to integrate consistent manufacturing processes, and the challenge of mobile phone lens yield will become higher and higher in the future. The larger the land, the better it will be in the future, and the production capacity will definitely enhance competition. key factor of strength. The increased penetration rate of
dual lens will be a big boon to the demand for lenses next year. Largan’s new factory is also preparing for future dual lens demand. However, if the market does not grow, or is even less than expected, the iPhone production capacity gap will be large, and Samsung orders will be pocketed, which will be beneficial to Largan's future order balance layout.
[Reporter Liu Fangmiao/Reporting from Taipei] Largan has ignited a patent war. After pointing its finger at Apple and Samsung, the two major mobile phone overlords, the market speculates that Largan’s next battlefield will be the mainland, and Sunny Optoelectronics is taking advantage of the lens and module line. The dragon manufacturing process, coupled with the geographical advantage of "people are close to the soil", will be the primary rival.
Largan went to the United States to sue Samsung and Yujingguang. One of the main reasons is that the main consumer markets of Apple and Samsung are in the United States. In recent years, in order to avoid patent wars and landmines, lens factories have moved to mainland China. On the one hand, the mainland market is big enough, and hundreds of mobile phone manufacturers are contending. Compared with the conventional war in the European and American markets, the guerrilla war in the mainland market that does not follow the rules, once the bet is on the right, there is a greater chance to stand out. OPPO and Vivo mobile phones have performed well this year. Just one example.
Source: Economic Daily
