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The way of expanding production of LED chip in China

Jul 15, 2017

In the same experience of expansion of production, overcapacity, as well as the production of output, reduce production capacity and a series of events, in the upstream led chip products since the second half of 2016, the price has been rising. And, with the introduction of LED chip entry threshold, industry concentration to further improve, as well as downstream LED lighting and small spacing products, LED chip prices high, so many led screen enterprises miserable. In the development of foreign markets in the background, expanding into a large enterprise led chip consensus, the manufacturers have been expanding to meet market demand, improve sales.

San an photoelectric


January 9, 2016, three photoelectric issued a notice, said the net amount of funds raised 3.454 billion yuan. Among them, 1.91 billion yuan is used for Xiamen optoelectronics "industrialization (phase Two) project" construction. After the completion of the project, it will form an annual output of ultra-high brightness led blue, green light epitaxial tablets 1.223 million pieces (in 4 inch equivalent products), chip 30.605 billion production capacity.

The company is expected to expand production in 2017 33%, the end of the year up to 2 million pieces/month, the projected revenue scale will surpass the crystal power, become an international leading chip led.

Huazan Photoelectric


2016 large-scale investment in the expansion of the 6 billion yuan photoelectric, is expected in May 2017 in Yiwu new plant will be formally put into production, production will reach an annual output of 3 million chip led chip size. The end of 2017 is expected to achieve 1.4 million-piece/month LED chip production scale, to reach the domestic second, the forefront of the global scale.

BDO run up


May 15, BDO run Tatsu Disclosure, received approval of the CSRC approved the company's non-public issues not more than 368 million new shares, the total amount of funds to be raised not more than 2 billion yuan, will be directed to flip chip, LED chip-level packaging project.

Among them, led flip chip project total investment of 2.5 billion yuan, proposed to use raised 1.5 billion yuan, is expected to form an annual production capacity of Flip chip 5 billion.

Dry photo


Xiamen Dry Photo Photoelectric on May 5 passed the "about the company's main business expansion of the motion." 2017 red, yellow led wafer and chip will continue to benefit from the small distance display field of continuous growth.

According to the announcement, the total investment expansion program of 737 million yuan for the implementation of red, yellow LED chip and three-knot gallium arsenide solar cell expansion, the main input equipment for 20 units of four Yuan MOCVD epitaxial furnace and the corresponding chip production equipment.

From time to time to expand production, industry concentration will continue to improve, the future more market discourse will be mainly in the three-Ann, Huazan and other large manufacturers, then the small size of the market will gradually be eliminated or marginalized.

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From the current report has been published domestic and foreign manufacturers including Osram, sharp and crystal electricity, in January-March this year compared to the number of the three optoelectronics is currently only inferior to Osram, sharp, crystal power, respectively, due to fierce competition and the impact of sinks, both turn losses.

Throughout the LED chip overall situation, due to the current market demand for LED chips continue to grow, in the short term market prices will be relatively stable. However, as the new increase in output from the second half of the release will be large, the original in the second half of 2016, the stability of the LED market is likely to face challenges again, and it will be possible to restart a wave of price competition.