Optoelectronic display industry’s upstream and downstream enterprises cluster in one building
2025-03-05
A company engaged in the optoelectronic display industry can do its business without the need to go out of the commercial building, because its raw material suppliers are downstairs while its customers are right upstairs. This new model in Yizhang county of Chenzhou city is attracting much attention in the wave of transformation and upgrading of China’s manufacturing industry.
In the standard factory building (Phase IV) of the Yizhang County Industrial Undertaking Park, the intelligent display glass panels produced by Fuyu Optoelectronics are continuously sent to Renchuang Electronics, and the LCD display module products produced by Renchuang Electronics are then sent to Fantai Technology, with a supply chain vertically clustered in one building.
In this building, Fuyu Optoelectronics is on the first to third floors, Renchuang Electronics is on the 4th to 5th floors, and Fanti Technology is located on the 6th and 8th floors.
“The products are sold to nearby enterprises in the park, forming an upstream and downstream industrial chain. The transportation cost of single glass panels has been reduced, and more than 500,000 yuan can be saved in a year,” said Fan Jianghua, deputy general manager of Fuyu Optoelectronics.
In Yizhang county, a new industrial pattern that one supply chain in one building has been formed, in which upstream and downstream enterprises are just located upstairs and downstairs in a same building. This model not only reconstructs the collaborative logic of traditional manufacturing, but also becomes a new sample for high-quality regional economic development.
Chenzhou Kingway Electronics Company is the pioneer of the optoelectronic display industry in Yizhang County.
We may get a glimpse of the contribution of Kingway Electronics to the optoelectronic display industry in Yizhang from Hengwei Road in the park, which is the only way to get to Kingway Electronics.
More than 20 years ago, coal mining was still the main industry in Yizhang, with almost no manufacturing industry. Jiang Hengliang, founder of Kingway Electronics, chose to invest in Yizhang in the wave of manufacturing industry transfer in the Pearl River Delta.
The reasons why Jiang Hengliang chose Yizhang are Yizhang's proximity to the GBA and the local government’s strong policy support.
At that time, there were many challenges when starting a business in Yizhang county, with land and funding being the biggest obstacles. The local government provided land and funds to help Kingway build factories, and the funds could be repaid in installments.
In terms of financing, the government also coordinated with banks to provide loans, which gave Jiang Hengliang great confidence and laid an important foundation for the company.
With the increasing demand for electronic products such as smartphones and televisions, the optoelectronic industry market is developing rapidly. With the strong support of the Yizhang government, Kingway has been expanding its business and becoming a stronger enterprise.
To meet the development needs of the enterprise, in 2014, the company was moved to Yizhang Economic Development Zone. It purchased more than 40 mu (2.67 hectares) of land, and rebuilt a 30,000-square-meter factory, ushering in new development opportunities.
With the support of multiple favorable factors, the company has seen rapid development. The LCD displays produced by the company are widely used in fields such as instruments, finance and communication. And the company has become suppliers to Fortune 500 companies such as Midea Group and Gree Electric.
With the continuous expansion of the company’s business and a focus on long-term development, the company established an office in Shenzhen of Guangdong province to promote the excellent services and industrial foundation of Yizhang EDZ and attract enterprises from the GBA to the county.
The company has successfully introduced multiple upstream and downstream enterprises such as Shenzhen Poltech Optoelectronic, Hanqi Optoelectronics, and Jingyao Glass.
These enterprises not only provide raw material or component support for Kingway Electronic, but also further improve the Yizhang optoelectronic display industry chain.
In 2000, the local government made the optoelectronic display a pillar industry in the county and made efforts to build a billion-yuan optoelectronic valley. It has introduced policies to support industrial development, and built an optoelectronic display industrial park.
The county government has also taken targeted measures to attract investment.
At the end of 2021, Kingway Electronics and Poltech Optoelectronic and others took the lead in establishing the Yizhang Optoelectronics Industry Association. Based on the association, efforts have been made to make the optoelectronic industry stronger.
The association has 84 member units, 90% of which come from the GBA, and 54 are enterprises in the park.
Now, the only polarizing film production base, conductive glass manufacturing enterprises, and monomer polyimide production base in the province have been established in the park.
Last July, the first optoelectronic display flexible circuit board project settled in Yizhang Economic Development Zone. It was put into trial production in February this year.
This is a significant achievement made by the association in attracting investment, which fills the gap in display devices in the park’s optoelectronic display industry chain and effectively improves the supporting facilities of the chain.
The closed-loop industrial ecosystem has made Yizhang a new highland for the development of Hunan’s optoelectronic display industry, and attracted more high-quality enterprises in China to settle in.
By the end of 2022, there were 28 companies in the industry, doubling to 54 by the end of 2021.Shanjia Electronics is one of them. As one of the few domestic manufacturers of ultra large LCD displays, after inspecting multiple cities in Hefei, Ji'an, and Nanjing, in January 2021, recommended by Kingway Electronics, the company chose to settle in Yizhang.
The reasons why Shanjia Electronics chose to settle in Yizhang county are the county’s geographical advantage, industrial foundation, innovation platforms, business environment, as well as the county government’s sincerity.
“To attract Shanjia Electronics to Yizhang, the local government helped solve such problems as water, electricity and factory buildings. As a result, we signed the agreement with them on our third visit,” said Wang Ming, the project manager of Shanjia Electronics.
Shanjia Electronics has developed rapidly. It resumed work on the fourth day of the Chinese New Year this year, and its orders have been scheduled until May. It is expected to achieve a production value of 600 million yuan by 2025.
A company connects an industrial chain, and an ecosystem influences a city. The optoelectronic display industry has become the leading industry in Yizhang County, and its optoelectronic display industry cluster has been successfully recognized as a “characteristic industrial cluster of small and medium-sized enterprises in Hunan Province”.
In 2024, the output value of the optoelectronic display industry in Yizhang county reached 7.2 billion yuan, an increase of 13.6% year on year.
Chinese source: rednet
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