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Hc Semitek Corporation: Expand LED chip production capacity, the goal of the world's top two

Jul 24, 2017

A period of time ago, domestic well-known led companies in Zhejiang Yiwu launched a LED industry trend exchange! At the meeting as the President of China Optoelectronic Liu Yan published a plan for the future direction of China's development! 

Company president Liu Yan said, the company will firmly expand production, the goal is to become one of the world's two strong, by 2020, the chip can reach 3 million pieces per month (in 2 inch chip, the same below), the overall income of 10 billion yuan. "For a niche market, we either don't go in and we have to be one of the best." "said Liu Yan.

Huazan Photoelectric is the pioneer of this round of LED expansion. And this industry meeting, there is a chance that the company Yiwu base in advance production. According to the introduction, the base of the first phase of investment of 3 billion yuan (a total of two projects, the total investment of 6 billion yuan), the post-natal period will be an annual output of 3 million 4-inch LED epitaxial chips and 3.2 million 4-inch sapphire substrates. Liu Yan Introduction, with the gradual release of new capacity, the company will be able to reach the end of this year's monthly production of 1.7 million tablets, at the end of the foundation to achieve double.

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Reporter learned that, in addition to Huazan photoelectric, the industry's other giants are also expanding production. According to the quantity estimate of core equipment such as MOVCD, the production capacity will be upgraded from 1.5 million to 2.5 million after the completion of the three-photoelectric expansion plan, and the capacity will be upgraded from 300,000 to 900,000. "The further expansion of the Giants, curb the investment impulse of other enterprises, but also in line with the trend of industry concentration, the first echelon of the two strong pattern has been formed, a large number of small enterprises may be eliminated." "One of the industry insiders told reporters."

According to the Research institute Ledinside researcher Suphing's analysis, the domestic led industry expands massively, has two reasons: first, the domestic enterprise technology has reached the world advanced level, the second is the domestic enterprise has the relative cost superiority, undertook the massive overseas entrusts the order. At present, the industry has entered a mature stage, the overall growth rate will slow down, but for domestic leading enterprises, as downstream demand continues to grow, as well as the global led industry to China's transfer, at least in the next 3-5 years, there is still a larger growth space.

In May this year, IDG Capital partner Yu Xinhua as chairman of Hua-chan photoelectric, he introduced in this meeting said, IDG is in 2007 began to invest in China photoelectric, this year is just the tenth year. Over the past few years, Huazan photoelectric through the acquisition of Crystaland technology to achieve the sapphire substrate confession, but also with customers Linsen jointly acquired Osram Lighting, is now acquiring the U.S. core. In the future, IDG will continue to invest in the LED industry, set up platform-class enterprises, vertical and horizontal integration.

Huacan recently disclosed six months notice, is expected to achieve net profit in the first half of this year 2. 1.3 billion yuan to 2. 2.8 billion yuan, year-on-year growth of more than 300%. The company said that the demand for LED chips is more vigorous, production lines are full load, and due to the release of some new production capacity, production and marketing volume than the same period last year greatly improved. At the same time, LED chip prices continued to last year four quarters of the steady trend, the company through the restructuring of product structure, wool interest rates than the same period last year to promote a larger range.

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