[Source: "New Industry" June issue] A domestic listed LED chip manufacturer has another listed company.

On May 22, Huacan Optoelectronics (300323.SZ) officially debuted on the GEM. This means that Huacan Optoelectronics is one step closer to the goal of fully self-produced LED strips, because Huacan Optoelectronics will use 900 million yuan for the third phase of LED epitaxial chip construction projects.

From 2009 to 2011, Huacan Optoelectronics' operating income was 100 million yuan, 351 million yuan and 474 million yuan respectively, with a compound annual growth rate of 117.36%. Huacan Optoelectronics said in the prospectus that Huacan Optoelectronics is the third largest LED chip manufacturer in China and the second largest manufacturer of LED chips for display in 2010. According to the published sales revenue in 2011 Huacan Optoelectronics has become the second largest LED chip manufacturer in China.

Insiders pointed out that the successful listing of Huacan Optoelectronics will bring subtle changes to the domestic LED chip market. Because, at present, the domestic upstream LED chip market is still in an oversupply situation. Most of the domestic LED chip manufacturers have a tight capital chain. Whoever can get the funds as soon as possible will win the new round of market competition.

Expansion

According to the data, Huacan Optoelectronics has been producing and selling LED chips on a large scale since 2008. Subsequently, the scale of production capacity has expanded significantly, and the market share of products has been rising.

At present, Huacan Optoelectronics has a monthly capacity of 15 billion. As of the end of 2011, the number of MOCVD equipment that Huacan Optoelectronics has commissioned has reached 25.

In 2011, Huacan Optoelectronics began the third phase of LE D epitaxial chip construction project. The total investment of the third phase of the project reached 1.398 billion yuan, and the amount of funds to be invested was 900 million yuan. The third phase of the project aims to expand the production of the original base. The products produced by the project are consistent with the existing products. They are high-brightness blue and green LED chips. The products can be used in display, backlight and lighting after being packaged.

However, Huacan Optoelectronics increased its investment in MOCVD equipment in the third phase of the project, and newly purchased 48 MOCVD equipment. After the project is completed, it will add 18.3 billion/month of blue and green light chip production capacity. According to the plan, the project will be officially put into production within two years.

"Expansion is for the growing market needs, as well as the needs of large customers." An insider of Huacan Optoelectronics said. According to Huacan Optoelectronics, the overall market size of China's LED epitaxial chip industry in 2009 was about 2.3 billion yuan. By 2011, it had risen to 6.5 billion yuan, with a compound annual growth rate of 68.11%.

In 2011, there were more than 60 enterprises engaged in LED epitaxial chip production in China, and 320 new MOCVD equipments were added in the whole year. The overall production capacity of domestic LED chips has increased significantly.

According to relevant statistics, in 2010, the demand for domestic LED chips was equivalent to 2 吋 吋 已 已 49 49 49 49 49 49 49 49 49 49 49 49 49 49 49 49 49 49 49 49 49 49 49 49 49 49 49 49 49 49 49 49 49 49 49 49 49 49 49 49 Trends, and with the further improvement of backlight penetration and the launch of lighting applications, the demand for domestic LED epitaxial chips will increase significantly. By 2015, the domestic demand for LED chips will be equivalent to 25,000 units of epitaxial wafers will reach 5.55 million pieces/ Month, about 11 times that of 2010.
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