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Home / News / Industrial Trend / [Trade Insight] Create a new blue ocean for laser applications
Trade Insight Vol.587 | Lin Shuhan
Mr. Neil Tung, who has experienced the rise and fall of the optical laser module market, after founding LECC Technology, in addition to being able to have a keen insight into emerging application market trends and early deployment, he has also successfully entered the supply system of major brand manufacturers with steady steps. In the future, we look forward to opening up new market areas in the application of biotechnology and health care.
From laser briefing pens, laser rangefinders, DVD players, to the popular LiDAR laser sensors for sweeping robots, mobile phones and automobiles in recent years, new application product markets for low- and medium-power lasers have emerged around the world for more than ten years. However, due to the rapid change of products, the performance of laser module manufacturers, which are the key to the industry, often fluctuates with the fluctuation of downstream application products, and it is difficult for companies with continuous growth and long-term foundations to emerge.
However, LECC Technology, which is located in Taoyuan and focuses on laser module products, is an anomaly in the industry. Since its establishment more than 20 years ago, the scale of the company has continued to expand, and it can always successfully grasp every wave of applications with a precise vision. Among the most popular home appliance applications at present, for every two sweeping robots in the world, there are more than one laser module using Dishen; in the medical field, computer tomography scanners including SIEMENS, GE, and PHILIPS also use Dishen. the laser module. Dishen's products are exported to Europe, America, Japan, and other parts of the world, and it is a veritable invisible champion.
Mr. Neil Tung, General Manager of LECC Technology Established LECC with a single hand, and successfully seized every wave of applications with a precise vision.
Mr. Neil Tung, who founded LECC, used to be a laser module sales business for a foreign company in Hsinchu Science Park. The largest application customer is a laser briefing pen manufacturer. In the 1990s, the export market of laser briefing pens in Taiwan was booming, and stationery manufacturers rushed to enter. However, in just a few years, the price of laser briefing pens fell by nearly 90% due to fierce competition. In addition, a large number of downstream customers moved out. The foreign businessman he worked for therefore decided to withdraw from the visible light laser module market.
Mr. Neil Tung, who has experienced the rise and fall of the industry, still firmly believes that visible light laser module products are still promising. The drastic fluctuations in the single downstream application market have brought itself into the fate of a generation of boxing champions. Therefore, Mr. Neil Tung started his own business in 2000. Although he still focused on the familiar laser pen market as his main business in the initial stage, strategically actively seeks new markets with high-end and potential demand for expansion. He saw that the power tool market continued to grow, and the matching laser modules and high-end products used to assist positioning would have huge market potential. The factory sent samples for sales and sought cooperation, and finally successfully opened the market for power tool applications, finding the first blue ocean market for LECC.
After the success of the power tool market, Mr. Neil Tung did not stop to expand the footsteps of new applications. LECC will continue to move its tentacles to the development of high-value medical equipment. In 2009, it entered the supply chain of SIEMENS, GE, and PHILIPS, which are major manufacturers of magnetic resonance imaging (MRI) and computed tomography (CT) equipment. In 2021, Hon Hai Technology Group donated protons to National Taiwan University. The proton therapy equipment in the center can also be seen with the LECC laser module. " Medical equipment is more profitable, and customers are not easy to change suppliers, which will promote the development of high value-added products for LECC."
In 2012, Mr. Neil Tung observed that the use of laser sensors and SLAM (Synchronous Positioning and Mapping) algorithm, the global path planning and obstacle avoidance technology that the sweeping robot can achieve has achieved the convenience of truly replacing manual vacuuming; When the sweeping robot was still in the niche market and had not been mass-produced, LECC was willing to invest a lot of research and development funds to make laser module design proposals and proofing for the sweeping robot of the brand home appliance industry.
In 2009, LECC entered the supply chain of SIEMENS, GE and PHILIPS, which are major manufacturers of magnetic resonance imaging (MRI) and computed tomography (CT) equipment.
As early as 2012, LECC invested a lot of money to make laser module design proposals and proofing for the sweeping robots of brand home appliance manufacturers.
In 2016, the market for sweeping robots finally took off. "The largest market for sweeping robots is in mainland China. The current demand for laser models is about 12 to 15 million units per year, and LECC's market share exceeds 60%." LECC's early deployment investment has also brought fruitful harvests. Since it was first shipped to Electrolux in 2013, well-known brands in the market such as Xiaomi and Ecovacs have all adopted LECC's laser module solutions. Mr. Neil Tung sees the application of the huge laser terminal market in mainland China, and has recently continued to expand factories in Taiwan and Shanghai.
In addition to Mr. Neil Tung's keen insight into emerging application markets and his ability to make arrangements in advance, LECC's ability to successfully enter the supply system of major brand manufacturers is also the main reason for its continued growth in different application markets.
However, laser modules are not a capital-intensive industry, nor do they have exclusive automation machines, and the technical process differences between the same industries are not large. How does LECC attract the favor and adoption of global brand customers?
LECC invested in the establishment of the first clean room in the industry, and even the laser modules used by power tools and sweeping robots are produced in the clean room.
Mr. Neil Tung pointed out: "In order to create a difference in manufacturing quality with the industry, when we first planned to enter the medical industry, we first introduced the ISO-13485 medical equipment quality management system that was not required by the customer, and invested several million NT dollars to ask SGS to carry out the process. Auditing and coaching to make the product quality meet the medical grade." LECC also invested in the establishment of the industry’s first clean room, and even the laser modules used in power tools and sweeping robots are produced in the clean room. With specific quality certification and clean room production environment, LECC creates a quality difference with its peers, which also allows brand customers to be fully assured of LECC's OEM quality.
In addition, "LECC also improves the technical level through patents, setting up a high wall that competitors cannot overcome." At present, LECC has obtained 98 patents around the world, including the creation of the world's smallest laser module that can integrate different packaged light sources. SMD LD. Through these patented technologies, LECC can reassure brand manufacturers about the source of technology and patents, and at the same time propose the best solutions, thereby attracting brand customers to jointly develop and design products.
LECC maintains its growth momentum with brand players who continue to develop new application fields, but price competition is inevitable in the ODM industry.
LECC often warns the company to avoid price competition in its business. "There is no cheapest, only cheaper." In the ODM industry, there will always be price destroyers who grab orders regardless of cost. Therefore, in terms of strategy, LECC carefully evaluates the potential of customers' products , would rather reject the explosive orders in the Red Sea market, and instead undertake a small number of customer orders that focus on quality and have long-term potential, so as to maintain sufficient gross profit to invest in the research and development of new products and customer service.
On the other hand, LECC is also deploying its own brand terminal products that enjoy higher gross profit. In order to develop the second product curve of the company, Mr. Neil Tung saw the post-epidemic non-invasive smart medical market, so he started from LECC's laser module technology and developed his own brand product - the low power of "Easy Moxibustion" (EJOU). Laser phototherapy series, including laser caps, laser combs, belts and nasal cavity maintainers, etc., combine the medical technology of low-power lasers with traditional Chinese medicine acupuncture and moxibustion, hoping to create a new market for laser health care products.
LECC's own brand products - the LLLT series of "Easy Moxibustion" (EJOU),
Including laser caps, laser combs, belts and nasal care devices.
Mr. Neil Tung is very optimistic about the prospects of the laser industry, "The face recognition technology launched by the iPhone, the mapping and obstacle avoidance of the sweeping robot, the curing light source for 3D printing, and the body measurement for medical care have all appeared in recent years. Yes." He expects that new terminal applications will accelerate the creation of new product markets with technological progress.
Under the high-angle growth of laser applications, Mr. Neil Tung revealed that LECC's laser module business has accelerated cooperative development with customers for emerging applications in automation equipment, high-end sensors and medical applications. The self-owned brand products have gradually completed the certification, and look forward to opening up new market areas in the application of biotechnology and health care.
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