Longsys deepens cooperation with upstream and downstream manufacturers in Taiwan, future business growth can be expected.

Publish Time:2018-06-11    

Longsys Electronics is a leading manufacturer of flash memory storage in mainland China. Recently, in addition to vigorously expanding non-consumer products, it also acquired Lexar brand from Micron, to expand its downstream outlets. Vice president of sales Kevin Wang pointed out that Longsys will continue to deepen its cooperative relationship with Taiwan's packaging and testing plants and customers, exerting the effect of one plus one over two, and with the continued expansion of the memory market, future business growth will be possible.

Caption: Longsys acquiring Lexar brand, a major brand manufacturer for flash memory storage.

 

Longsys, established in 1999, has been engaged in R&D and marketing services for storage products and peripheral applications. Its product lines include memory cards, USB flash drives, embedded eMMCs, eMCPs, and SSDs etc. It owns industry storage brand FORESEE and high-end consumer brand Lexar. Longsys currently have business and cooperation relationships with thousands of customers around the world, and has gradually developed into a leader in the storage module market in mainland China. At present, the proportion of consumer products and commercial products of Longsys is 40% and 60%, respectively.

Caption: Longsys - Storage products and peripheral applications

 

Longsys and Taiwan semiconductors have deep connections. In addition to find local OEMs for packaging, testing and mastering production capacity, Longsys also serves as a supplier of product solutions for local customers. Kevin said that Taiwan is very international. Through these brand customers, Longsys can effectively expand the international market.

 

Caption: Longsys exhibited in Taiwan to expand the international market.

 

Previously, Longsys, Kinpo, Phison, and other Taiwanese upstream and downstream supply chains have jointly invested in Brazil to set up a package and testing plant and have started to produce eMMC products. Kevin said that partners are very important, Longsys will gradually strengthen investment in Taiwan, cooperation with OEMs will deepen. In the future, it will also strengthen production and manufacturing in other markets. This “flock” approach can share the risks and the result is that the effect of one plus one is greater than two.

 

Caption: Longsys acquiring Lexar brand, a major brand manufacturer for flash memory storage.

 

At present, the proportion of consumer products of Longsys has dropped from more than 90% in the early period to 40%. Commercial products that have grown rapidly in the past five years are making up the rest 60%. According to Kevin, although the market growth of the overall consumer products is limited, the market is still very large. For example, the annual global smartphone shipments reach 1.5 billion. Therefore, there is still a lot of room for growth in terms of product introduction for subdivided areas. In Computex2018, Lexar exhibited a 512GB MicroSD card that can be used in smart phones, drones and other consumer customers to expand storage capacity.

 

Caption: Longsys displayed FORESEE PCIe SSD.

 

At the same time, Longsys also brought single-chip SSD products, which can provide commercial customers with lighter and smaller products through small size and low power consumption. At present, Longsys has already delivered FORESEE PCIe BGA SSD samples to international manufacturers for verification tests, it is expected that relevant products will be launched in the market this year. As for other commercial markets, such as AI products, new energy vehicles and other fields are still having great space to imagine.

Longsys took the form of a virtual factory and acquire NAND particles from the upper stream of Samsung, Micron, and Western Digital, and handed them to downstream partners such as OSE and DLT, together with Longsys’ own product design, firmware's research and development capabilities provided customers with products. Other than mainstream products, Longsys can also provide customers with customized product design. Kevin said that Longsys is dedicated to providing customers with the products they need and meet their diverse storage product needs.

 

Caption: Longsys applied for nearly 600 Flash-related patents accumulatively.

 

In response to the development of globalization, Longsys launched the new corporate logo “longsys” in 2014 and accumulatively applied for nearly 600 Flash-related patents. Last year, Longsys also acquired the Lexar brand from Micron to expand its share of the retail market. Kevin pointed out that to acquire Lexar brand is not to compete with existing customers, but hope that through the "value-up" business model, to avoid falling into the price competition in the Red Sea market, and bring innovative, high-quality products through the brand as soon as possible to customers.

 

Caption: Longsys brings innovative, high-quality products through the "value-up" model as soon as possible to customers.

 

In response to artificial intelligence and fast-growing markets for data centers, in addition to the corresponding products, Longsys has to cooperate with the best vendors through its own software R&D capabilities to provide customers with faster solutions. Kevin said that Longsys has a “slogan” for “Everything for Memory”, currently, the market share of Longsys in Flash memory is still less than 2%, the overall market is still growing, so long as new products are continuously introduced, market share can be increased. There is still plenty of room for growth in the next 10 to 20 years.

 

SOURCE China Times