August is a month of passion, with the Olympics in full swing. Chinese athletes are achieving great feats on the field, bringing home victory after victory. As a representative of China’s manufacturing industry, the products of Foshan Nationstar Co., Ltd. have shone brightly along the Seine River.
This year, Nationstar has frequently claimed the top spot in the manufacturing arena.
Recently, the 2024 Guangdong Provincial Manufacturing Single Champion Enterprise List was released, and Nationstar’s “Multifunctional Indicator Module” was successfully selected. Earlier, the company also won the national title of Manufacturing Single Champion Enterprise for its independently developed “LED Devices for High-Definition Displays.”
The Manufacturing Single Champion title is a significant indicator of a country’s manufacturing foundation and development potential, often referred to as the “crown jewel of manufacturing.” Companies that earn this honor have an absolute leading advantage in their specialized industry fields.
How did Nationstar craft its “champion” products and ascend to the peak of the industry?1
From Leading Products to Market Leadership
Manufacturing Single Champion Enterprises are long-term focused on specific segments of the manufacturing industry. They excel in innovation and technological capability, with production techniques and processes that reach international standards and lead the domestic market. Their market share for specific products ranks among the top nationwide or even globally.
Hermann Simon, a renowned German management thinker and the “father of hidden champions,” described “hidden champions” as companies that dominate a specific niche and lead the global market with a core philosophy of “being the best,” emphasizing focus and leadership. Ambition, specialization, and globalization are the keys to their success.
These insights equally reveal the secret to the success of Manufacturing Single Champions.
Creating “champion” products begins with focus and accumulation. As a pioneer in China’s LED packaging industry, Nationstar has been deeply involved in the field for over 50 years. As early as 2002, it globally pioneered the chip-based LED indicator module, which was first applied in the home appliance sector. In 2004, it began producing LED display packaging devices, becoming the first company in mainland China to produce surface-mounted (SMD) RGB LEDs.
Becoming a “champion” enterprise hinges on core technological innovation. The “LED Devices for High-Definition Displays,” which earned the national “champion” title, have won numerous accolades, including the “2022 Guangdong Province Manufacturing Single Champion Product,” the “First Prize of Guangdong Province Science and Technology Progress Award,” and the “China Patent Excellence Award.”
The “champion” advantage lies in addressing market “pain points.” Nationstar excels in identifying and solving these issues, which is why its products resonate with customers both domestically and abroad.
The “Multifunctional Indicator Module,” which claimed the provincial title, is widely used in home appliances, CNC devices, electric bikes, instruments, and consumer electronics. It has developed diverse solutions based on market needs.
For voice interaction needs in terminal applications, Nationstar introduced an AI voice module that, through extensive sampling, improved the adaptability of Mandarin accents across various regions in China, effectively resolving functional limitations caused by regional dialects. For smart control needs in terminal applications, it launched a full-color touch module that uses 3D painting technology to clearly and vividly display device operation functions. For ultraviolet disinfection needs, it introduced a UV sterilization module that further enhances sterilization effectiveness, achieving a sterilization rate of up to 99.9%.
“Champion” enterprises capture market share with formidable strength. The “Multifunctional Indicator Module” has secured orders from globally renowned brands and has repeatedly won “Outstanding Contribution Awards” from major home appliance giants like Gree and Midea. The “LED Devices for High-Definition Displays” held the top market share in China and globally from 2020 to 2022.
At the recently concluded Paris Olympics, Nationstar’ RS-1921 product was selected to shine along the Seine River, thanks to its high contrast, high consistency, and stable and reliable display performance. Previously, at the 2022 Beijing Winter Olympics, the Russia World Cup, and the Rio Olympics, Nationstar also made a significant impact, continuously showcasing the prowess of a “national brand.”
Technological Self-Reliance and Innovation Ecosystem
Innovation is the defining trait of Manufacturing Single Champions and the core driver behind Nationstar’ repeated successes.
In recent years, Nationstar has vigorously implemented an innovation-driven development strategy, promoting high-level technological self-reliance. Through breakthroughs in core technologies, creation of high-value patents, and collaboration among industry, academia, and research institutions, the company has established a robust innovation ecosystem, jointly advancing the high-quality development of the industrial chain.
In terms of core technology breakthroughs, the company has focused on key areas such as Micro/Mini LED, third-generation semiconductors, and automotive LEDs, working to solve critical challenges in the semiconductor field. It has successfully developed cutting-edge products such as Micro LED full-color display modules, micro displays for AR glasses, and digital car headlights, positioning itself as a pioneer in industrialization and marketization.
Regarding high-value patent creation, Nationstar has filed over 1,100 patent applications, with more than 800 granted, and over 50% of these are invention patents. The company has been recognized as a National Intellectual Property Demonstration Enterprise. Its “Full-Color LED and Display Module” won the China Patent Gold Award, and several products have been named “Guangdong Province High-Quality High-Tech Products.”
In terms of industry-academia-research collaboration, the company has established a broad network of innovation partnerships with universities: co-founding key R&D platforms like the National-Local Joint Engineering Laboratory for Semiconductor Lighting Materials and Devices and the Guangdong Provincial Key Laboratory for Semiconductor Microdisplays with Sun Yat-sen University, Foshan University, and Macau University of Science and Technology; jointly undertaking over 30 national projects with institutions like South China University of Technology, Wuhan University, and Xiamen University; and working with research organizations like the Hong Kong University of Science and Technology’s State Key Laboratory of Advanced Displays and Optoelectronics, and the Guangdong Academy of Sciences’ Institute of Semiconductors on projects related to GaN power devices, semiconductor displays and applications, and Micro LED mass transfer and bonding.
Nationstar has also optimized its technology innovation incentive mechanisms, implementing a separate salary budget for core technology talent. It has established a President’s Reward Fund, linking innovation incentives to performance outcomes, and awarded nearly a million yuan in technology and innovation bonuses.
Supported by these systems and mechanisms, Nationstar has cultivated three national high-tech enterprises and two provincial-level specialized and innovative SMEs. Among them, Nationstar Semiconductor has been recognized as a national-level “Little Giant” enterprise.
From incubating manufacturing single champions to nurturing provincial specialized and innovative SMEs and national-level “Little Giant” enterprises, Nationstar has not only reached the pinnacle of manufacturing but also gradually built an innovative “pyramid” system.
Advancing Towards New Heights in Three Major Industries
In the fiercely competitive manufacturing arena, there are no permanent “champions.” Only through continuous improvement and the pursuit of excellence can one maintain a leading position.
Currently, Nationstar is steadfastly focusing on its LED core business, striving to build “three major industries” by driving technological innovation and equipment upgrades, vigorously cultivating and developing new types of productive forces, and enhancing value creation and industry leadership capabilities.
Nationstar is committed to its LED core business and is working to build “three major industries.”
Strengthening the core industry: In Nanzhuang Town, Chancheng District, the expansion project of Nationstar’ Geely Industrial Park is progressing rapidly. Once operational, it will further consolidate the core advantages of high-definition display devices and accelerate technological upgrades and product iterations.
Optimizing the foundational industry: Nationstar is advancing high-end lighting white LED expansion projects and the construction of LED application product production lines in Maoming Gaozhou, fully upgrading its optocoupler production lines with the addition of SOP4, DIP6, 10XX, and 357 series products, significantly boosting gross profit margins.
Cultivating emerging industries: Nationstar is focusing on the automotive LED market and new fields such as smart health sensing devices. It is also actively investing in advanced packaging and testing, updating integrated packaging production equipment, expanding the variety of third-generation semiconductor products, and promoting mass production.
Earlier this year, the controlling shareholder of Nationstar, Guangsheng Holding Group, announced the “1+15+N” business management “Climbing Plan” to accelerate the high-quality development of the company and strive to build a world-class enterprise.
In line with Guangsheng Holding’s FAITH business philosophy, each of Nationstar’ business segments will be guided by the “Climbing Plan,” implementing multiple measures to accelerate the development of new productive forces.
Moving forward, Nationstar will explore innovative collaboration mechanisms across the industrial chain, accelerate technological breakthroughs in key core areas, and make every effort to establish itself as a source of original technology; advance the “Five Strengths and Five Improvements” special action in human resources to build new talent hubs; and promote the concepts of green, intelligent, and sustainable cost reduction and efficiency enhancement throughout all processes and links, sparking vitality for quality and efficiency improvements and achieving a “double improvement” in operational performance and management quality.
Nationstar is steadily advancing on the path of high-quality development, demonstrating resilience and vitality as it climbs to new heights. The company looks forward to creating more “champion” products in the future and becoming an even stronger “champion” enterprise.
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