Sanan optoelectronics: LED timely expansion, speed up the layout of new business

Old MOCVD machine out of the LED global capacity to improve the gross profit margin continued tight LED chip companies

Purchase 2010-2012 expansion during the peak period of MOCVD machine is now facing the aging will focus on the elimination of this type, capacity are mainly distributed in Europe and Japan and South Korea, Taiwan and China, a total of approximately 1800 MOCVD, accounting for about 3100 of the current global population of 60%, nearly 50% of the world's production of LED epitaxial wafer, 2018-2020 these old machines will be gradually phased out, every year the purchase of 450 sets of new equipment to make up for the old exit capacity.

From the LED vendor expansion plan, lack of overseas companies expansion power, the main expansion is Chinese, expansion machine manufacturers, but less than the number out of the machine, thus the production capacity within the next three years is still tight, the industry into the economic cycle, LED enterprise benefit, enhance profitability.

LED downstream demand continues to rise, the emerging field of Micro LED is increasing, the market is expected to become the next outbreak

The current global LED market scale still has more than 10% annual growth, small spacing, permeability of automotive lighting accelerated, driven by LED wafer, chip demand growth. Infrared and UV LED products have been applied in medical, health, security and other fields. MicroLED even if only in the world's 5% watches and mobile phone applications, will consume all of the current global LED epitaxial chip capacity, so Micro LED is a huge market. In the process of Micro LED from scratch, applications gradually penetrate, LED demand will grow rapidly.

Three timely lead expansion, to further consolidate the leading position

For the LED industry is approaching the peak of production capacity out of the situation, such as the mainland manufacturers timely expansion of three. In 2016 three operating income for the first time beyond Taiwan EPISTAR, 2017-2018 three will purchase 150 units of MOCVD expansion, the global market share will rise to 22%. Not only the scale of leadership, profitability is the strongest. With the company's excellent strategy, leading technology and management level, in many LED chip enterprises, regardless of sales margin or net interest rates are in the first place.

Automotive lighting business layout, deepen industrial chain vertical integration

Wuhu Rui optoelectronics is the focal point three development of automobile lighting business strategy, a project investment 200 million yuan near the completion of 2015 and 2016 revenues were 256 million yuan and 510 million yuan. The two phase of the project is under construction, with an investment of 968 million yuan, which is an important component of the vertical integration of the whole industry chain, and will promote the rapid growth of the company's LED products in the automotive lighting market share. Three will be completed from the vertical integration of upstream substrate, gas and other raw materials, in the middle of LED wafer and chip, the application of LED products to the downstream of the whole industry chain.

, leveraging the 5G networking opportunities, compound semiconductor integrated business will sail the new global technical reserves continue to increase, 5G, networking, wearable devices, AR, industry 4, artificial intelligence is the eve of the outbreak, new technology upgrade will lead to gallium arsenide and gallium nitride as the representative of the second generation and the third generation of compound semiconductor industrial development. A subsidiary of Sanan integrated (compound semiconductor business) a project investment of 3 billion yuan, is expected to be completed by the end of 2018 construction. The main products are GaAs high speed semiconductor device and GaN high power device. It is widely used in mobile phone, TV, automobile navigation, satellite, radar and other communication fields, and has a bright future.

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