In order to give full play to the company's existing technological advantages, equipment advantages, technological advantages, enhance product structure, and accelerate the transformation of scientific and technological achievements, Ganzhao Optoelectronics continues to expand the production scale of LED epitaxial chips based on the production of original LED epitaxial chips. Nanchang City, Jiangxi Province invested 5 billion yuan (in two phases) to build a blue-green chip production base that can achieve a monthly output of 1.2 million pieces (2 inches). It is estimated that the first phase investment will be 2.5 billion yuan. A production base of blue and green chips with a monthly output of 600,000 pieces (2 inches).
Based on the actual demand for the expansion of the company's blue-green business, Ganzhao Optoelectronics plans to set up a wholly-owned subsidiary to invest in the expansion of production projects in Xinjian District, Jiangxi Province with a capital of RMB 300 million.
The application market for this expansion product is mainly in the fields of lighting, display and backlight.
In the past ten years, the annual growth rate of the global LED market has exceeded 20%. In the future, with the continuous advancement of technology and further reduction of costs, the rapid growth of the market will inevitably be promoted, especially in the field of lighting market.
According to the National Semiconductor Lighting Engineering R&D and Industry Alliance, in 2017, the global LED chip demand will be equivalent to 2,394,000 pieces/month, which is about 11 times that of 2010. The domestic LED chip demand is equivalent to 2 inches of epitaxial film. It will reach 7.7 million pieces/month, about 15 times that of 2010.
Therefore, the implementation of this expansion has a very broad market prospect. Industry experts believe that with the sharp price cuts of LED products in the past two years, more and wider applications will be stimulated, and semiconductor lighting will enter the growth stage, which will surely reproduce explosive high-speed growth.
This expansion is also an industry encouraged by the national “12th Five-Year Plan†national strategic emerging industry development plan.
Since the launch of the National Semiconductor Lighting Project in 2003, the state has increased its policy guidance and financial support in the LED industry. It has developed a number of strategic plans for industrial development and introduced a series of incentive policies, such as the 863 Program. The semiconductor lighting products are listed as “key areas and their priority development themeâ€, and the “Ten Cities and Ten Thousand Cities†plan launched by the Ministry of Science and Technology in 21 domestic developed cities such as Shanghai, Shenzhen and Dalian.
In particular, with the deepening implementation of the “Twelfth Five-Year Planâ€, local industry-specific industry incentive policies have been introduced one after another. It is more typical that Guangdong Province will adopt more environmentally friendly and energy-saving LEDs from all projects funded by the government in 2012. Semiconductor lighting products replace traditional luminaires. All these industrial policies will further promote the rapid and healthy development of the LED industry and form a favorable peripheral policy environment for the project.
With the rapid development and extension of the domestic LED industry from the bottom up, the relevant international industrial chain is rapidly moving to the mainland China, and China has rapidly developed into an important global LED epitaxial chip industry base. At present, China has formed a complete industrial chain from substrate materials, epitaxial growth, chip manufacturing, chip packaging, terminal display devices, lighting fixtures to applications, and has formed LED industry clusters mainly in the Yangtze River Delta region and the Pearl River Delta region.
At the same time, the complete industrial cluster provides mature supporting conditions for the implementation of the expansion of Ganzhao Optoelectronics.
In addition, Ganzhao Optoelectronics plans to invest in the establishment of an industrial fund. The total size of the fund is no more than RMB 700 million. It focuses on investment in the semiconductor field, including but not limited to microwave devices, RF devices, lasers, and new LED directions.
Ganzhao Optoelectronics has clearly focused on the semiconductor field, through its own endogenous and outreach mergers and acquisitions, to create a first-class semiconductor industry manufacturing enterprise, and ultimately committed to the realization of China's core, China's future development strategy, through equity, mergers and acquisitions, incubation, Cultivate and other methods, invest around the semiconductor core device field, promote the company's rich product line, form industry support, and create a diversified semiconductor industry leader with chip manufacturing as the core.
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