Huacan optimistic about the development trend of the LED industry, will continue to promote international cooperation and mergers and acquisitions

Reportedly, HC semitek recently received a number of motions adopted by the general meeting of shareholders. Following the CFIUS (Committee on foreign investment in the United States) after the approval issued shares of the company through the acquisition of harmonious core optical (Yiwu) Photoelectric Technology Co. Ltd. indirect acquisition matters to obtain new progress again MEMSIC semiconductor.

Huacan photoelectric chairman Yu Xinhua told reporters, after two years of downturn, since the second half of 2016, the LED chip set off a round of price surge. Industry leading enterprises rebounded significantly, industry competition gradually shifted to a benign situation, and market share will be accelerated to focus on enterprises with technological and scale advantages. In recent years the company has acquired Yunnan langene Technology (completed), MEMSIC semiconductor (in progress), company mergers and acquisitions focus on advanced technology and industrial chain collaboration, the future will continue to promote international cooperation and mergers and acquisitions.

To enhance the degree of concentration of market

After nearly two years of price war, the end of 2016 LED industry set off a round of price surge, and continued until 2017.

People industry said that the price war period and backward production capacity to gradually withdraw from the market of raw materials, especially the industrial metal prices of leading enterprises and enhanced voice become the basis of product prices. Overall, the global LED market growth is expected to slow down, but the trend is still upwards. Industry competition is still fierce, but gradually change to a benign situation, the price war between enterprises reduced space. With the gradual elimination of "incandescent lamp roadmap" gradually clear, consumer demand for product quality upgrade, low quality, low price competition era has become the past, LED market competition will be more orderly.

Yu Xinhua pointed out that small and medium-sized firms 100 thousand -20 million of annual capacity to meet customer demand, the demand of downstream customers gradually concentrated to large companies. At the same time, large domestic LED manufacturers in the international competition, the comprehensive advantages are obvious, overseas customers tend to meet the demand through the external chip, the overseas market will improve the supply and demand relations. Hua Guang photoelectric expansion after the birth, is expected to receive more well-known large enterprise customers orders. "Hua Yi photoelectric and other leading enterprises capacity expansion mainly based on customer demand."".

Under this background, the domestic LED chip listed companies have expanded production capacity, including three safety optoelectronics, HC semitek and Australia Shunchang etc.. Among them, Hua photoelectric with the Yiwu factory put into operation, the third quarter of this year is expected to produce 1 million 300 thousand / month, the four quarter is expected to reach 1 million 600 thousand / month.

On new technology development, HC semitek began last year to increase investment, which is expected to the end of this year is expected to achieve infrared LED production, R & D cooperation with well-known manufacturers Micro-LED project has achieved preliminary results. The company's R & D for lasers and deep UV is under active deployment.

LiFi field layout

2015 acquisition of the sapphire substrate manufacturers Yunnan langene technology, 2016 Huacan photoelectric sensor MEMS acquisition planning leading MEMSIC semiconductor.

Yu Xinhua said that the synergy effect of LED and the main value of MEMSIC semiconductor sensor industry, and focus on the layout of LiFi (visible light communication industry). The cumulative shipments of more than 1 billion kinds of MEMS MEMSIC semiconductor sensor, its application fields include consumer electronics, automotive electronics and industrial control. As a key component of safety airbag, new high precision accelerometer downstream customers include Ford, GM, BMW, Benz, Microsoft, etc.. M & a new semiconductor, contribute to the promotion of LED products to enter the automotive industry supply chain.

In recent years, the production cost of the LED chip products continue to decline, the quality control experience is conducive to optimizing the production and operation of new semiconductor. In addition, sensors and LED chip products are important components of LiFi technology applications. Compared with the current mainstream WiFi, LiFi technology has obvious advantages in capacity, efficiency and security. After completion of the acquisition, the company's advantages in sensors and LED chips help the company advance layout in the LiFi field.

Yu Xinhua also said that the major shareholder of the company will help to integrate the advantages of resources of IDG capital, will continue into the domestic market and overseas advanced technology enterprises, and promote international cooperation in overseas mergers and acquisitions.

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