Tough cut blue and green, and dry as Huacan friends do?

Changelight July 24th afternoon announcement, the company recently with the Xiamen torch hi tech Industrial Development Zone Management Committee (hereinafter referred to as the "Xiamen torch CMC) company investment in the construction of the blue-green LED epitaxial wafers, chips and lighting industry projects signed the" investment agreement ".

Notice revealed that the total investment of the project reached 5 billion yuan, the new scale of 100 units MOCVD, divided into two phases. The first phase of the project plans to invest 2 billion yuan for the purchase of MOCVD equipment and the construction of 50 production lines, plant and ancillary equipment, facilities. And so on, in the company is located in Xiamen torch hi tech Zone (Xiangan) Industrial Zone in the expansion of the factory. Two phase of the project intends to invest 3 billion yuan, the construction phase of the project for the period of 2 years of two.

China has been the largest supplier of red and yellow light chip dry photovoltaic, why at this time a high-profile blue chip field?

Whether it is from the development trend of the industry and corporate strategy in two ways, this is the choice of the dry photoelectric must choose.

From the development of the industry, China LED chip industry in the past few years mainly depends on the LED display application demand, the red and yellow light can be used for the production of dry chip as red and yellow monochrome display and colorful display, rapid growth in the past few years in the market, but also because of dry as red and yellow light LED chip quality is stable, the price advantage is obvious has achieved rapid development. However, the display market growth slowed since 2012, the whole market growth gradually decline. LED lighting applications in recent years generally optimistic about the industry's prospects, but the same is LED, LED lighting is mainly used for blue chips, dry red and yellow light as the main chip almost no demand, if not to make adjustments in the business field, dry according to LED lighting market may miss the rise of industry opportunities.

From the aspect of corporate strategy, in the colorful display market, dry according to red and yellow chip and HC semitek, Silan azure main green and blue chips are complementary products, customers in the production of display devices, in the procurement of red chips, will be equal to the amount of the purchase of blue and green chips. The dry light and Huacan customers have a high degree of coincidence. In the past few years, and dry according to Huacan management display chip market and at peace, and even some time will cooperate with each other to full chip manufacturers with crystal electric and three such threats.

However, China has been very clear that the red light into the field of optical chips attempt. In November 27, 2013, China can photoelectric announcement that the 100% general meeting of shareholders on the adoption of the "Hua Guang photoelectric (Suzhou) Co., Ltd. LED epitaxial chip chip project of the motion of the two phase". According to the plan, China will be able to invest 305 million yuan optoelectronics, the construction of an annual output of 480 thousand pieces of red light yellow LED epitaxial wafer, the production capacity of 15 billion 400 million red and yellow chips.

The dry according to, is undoubtedly a deadly threat, if Huacan red yellow light chip to market sales, not only complementary Huacan and dry according to disappear immediately, even red demand in the short term to replace the advantages of full-color supply customers. The high degree of overlap of the customer base will be more serious squeeze dry market space.

It was under such a threat that the sun shone on the green and blue fields. Dry according to date from March to 20 to buy the suspension main blue chip manufacturers horse harmony photoelectric, but finally failed to reach an agreement, failed to restructure.

So it seems that the final decision to invest their own green blue green MOCVD project is reasonable. Only now, and the old buddy HC semitek, Silan azure only cannot draw sword against, with friendly play.

The government of Xiamen since the high subsidies Sanan optoelectronics, there is no reason in the original discrimination in the city's changelight. If the results of the project, then a Xiamen city will have two very competitive color LED chip companies, from the West Strait to build the photoelectric industry center is a step closer to the goal.

Just from the overall development of the industry, although the LED chip industry has bottomed out, since this year is the existence of a certain degree of supply shortage, but the equipment subsidy policy of the government of Xiamen to restart, other city will inevitably follow the trend, once again set off a wave of MOCVD expansion wave. If the decline in the growth rate of the phenomenon of LED industry, overcapacity risks will still come again.

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