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Sanan to Establish LED Production Base in Southeastern China


China based LED epiwafer & chip maker invests approximately USD $5bn to establish an LED production base in Quanzhou, southeastern China, reported Digitimes recently.

One of China's largest LED epi wafer and chip makers, Sanan Optoelectronics, is investing CNY 33.3bn (approximately USD $5bn) to establish an LED production base in Quanzhou, southeastern China.

Production will consist mainly of gallium nitride (GaN) substrates, epiwafers and chips, gallium arsenide (GaAs) epiwafers and chips, and high-power GaN lasers. All production lines are targeted to begin operation in five years and are expected to reach a high level of capacity utilization with target total annual revenue of CNY27bn in seven years.

Compared with active capacity expansion by fellow China-based manufacturers including HC SemiTek, Huaian Aucksun Optoelectronics Technology and Xiamen Changelight, Sanan expanded production capacity only slightly in 2017. The firm's latest investment plan is intended to maintain its leadership and competitiveness in the LED industry, industry observers say.

Sanan's net profit has risen from CNY691m for first-quarter 2017 to CNY1.515bn for second-quarter 2017 and CNY2.378bn for third-quarter 2017.

According to China-based Shenzhen Gaogong Industry Research (GGII), China's production value for LED chips will grow 30% year-on-year in 2017, with the five largest manufacturers collectively comprising more than 60% of the total value.

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