To consolidate the market share. Japan to build new plant to expand LED capacity

Japan's LED Nichia Corporation released a press release 25 days ago, announcing that the demand for LED for lighting and backlight modules continued to be strong, and that LED would be extended to automotive, industrial machinery and other fields. The market forecast will further expand in the future, so the resolution will be held in Naruto factory (Tokushima Ming Ming City) factory area. Build new plant and expand the capacity of LED application products, so as to maintain the top market share in the LED market.

The new plant will start construction in August 2018 and is expected to be completed in May 31, 2020. The total investment (including the cost of plant construction and equipment import) is estimated at about 16 billion yen (about 976 million RMB). After completion of production, it is estimated that the LED capacity of the Naruto plant in 2021 will be expanded to about 2 times the current capacity.

The Nikkei News reported that white LED is the main source of income for Japan's Asia Pacific. However, due to the expansion of production capacity of LED manufacturers in mainland China and Taiwan, resulting in price competition intensifying, Japan Asia will strengthen the LED products business of high value-added vehicle / Lighting / LCD.

It is reported that the LED plant and the LED application product are currently being manufactured at the Japan Naruto plant, and the new plant will serve as a specialized factory for LED application products. The 2017 annual revenue of the optical semiconductor industry, which is the main cause of LED, is 275 billion 300 million yen, and the estimated revenue in 2018 will increase by 9% to 300 billion yen per year.

In its operation plan published in April 23rd, Japan's Asia Pacific Group has pointed out that it will increase the sales of lithium-ion battery materials for electric vehicles (EV), expand the LED market in China / Europe, and expand the sales of laser diodes (LD, Laser Diode) used in projector light sources, and the target will increase the consolidated revenue to 500 billion yen in 2020.

Japan's Asia Pacific forecast will increase 21% to 420 billion yen in 2018 and 50 billion yen in combined net profit. The estimated investment in equipment will increase from 4 to 77 billion yen per year. Speaking at a press conference held in April 23rd, Ogawa Hiroyoshi, President of Japan's Asia Pacific region, said, "the high interest rate of 2 digits (more than 10%) will be maintained in the future."

Source: Money DJ

For more LED related information, please click LED net or pay attention to WeChat public account (cnledw2013).