[High-tech Conference] Dry Photoelectric Gold Medal: Strategic Choice of Semiconductor Enterprises in Industrial Transformation

Ganzhao Optoelectronics Co., Ltd. was established in 2006. It was mainly based on red and yellow chips. It was listed in 2010 and set a record for the fastest time for Chinese companies from establishment to listing. In 2014, Ganzhao Optoelectronics entered the field of blue-green optical chips. In 2016, Hejun Group joined the management of Ganzhao Optoelectronics.

As a star company of LED chips, Ganzhao Optoelectronics chooses how to change when the industry changes. On December 21st, at the 2017 High-tech LED Annual Meeting hosted by Gaogong LED, Jin Zhangyu, Chairman of Ganzhao Optoelectronics, delivered a keynote speech on "Strategic Choice of Semiconductor Enterprises in Industrial Transformation". Chairman Jin Zhangyu introduced the dry photos. The strategic choice of optoelectronics.

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Jin Zhangyu, Chairman of Ganzhao Optoelectronics

Jin Zhangyu pointed out that with the retirement of the old generation of entrepreneurs, the dry photo has ushered in new development opportunities and brought new challenges. At present, the company is located in Xiamen, with production bases in Xiamen and Yangzhou. Today, the Xiamen base mainly produces blue-green light chips, and the Yangzhou base produces red and yellow LED chips.

Jin Zhangyu introduced that at present, Ganzhao Optoelectronics owns 20 MOCVD equipments for producing red and yellow LED chips, and the monthly production capacity of epitaxial wafers reaches 170,000. From 2014, it entered the blue-green light chip Lingyun, which currently has a monthly capacity of 400,000 pieces. At the Xiamen base, there are 50 MOCVD equipment, and the annual production capacity of epitaxial wafers exceeds 400,000.

As a new entrant in the field of LED chips, Ganzhao Optoelectronics is also doing supply chain integration and expansion in production and management. At this stage, whether it is packaging, or the manufacture of chips and epitaxial wafers, it can be said that it is already an ordinary manufacturing industry. The ultimate decisive factor in the competition of the general manufacturing industry in industrial integration is operational efficiency.

In terms of strategic choice, Jin Zhangyu uses “scale follow” to summarize. He pointed out that China's semiconductor lighting industry will certainly be the world's number one company, which is the general trend of industrial integration. In this sense, the chip industry is also the same.

Jin Zhangyu believes that LED downstream is more personalized, and the chip is more homogenous, so 3-5 companies in the chip field can provide the required capacity. Under this general trend, Ganzhao Optoelectronics is positioned as a scale follower. Jin Zhangyu said: "Guangzhao Optoelectronics entered the period relatively late. Therefore, we hope that the scale should not be too far behind. After the expansion of production next year, the production capacity will reach about 70% of Sanan's supply."

In addition, dry photo photoelectric is made of red and yellow light, and red and yellow light has a high technical content. Therefore, dry photo optoelectronics hopes to continue to lead in technology and increase products with technical characteristics, rather than simply The number of competitions. In addition, we will make strategic investments in resources for new future displays and MiniLEDs. "Although the late Qingzhao Optoelectronics is relatively small in scale, but there are more strategic resources, we have seized a certain point of investment and strived to achieve a certain corner overtaking in new areas." Jin Zhangyu said.

It is understood that Ganzhao Optoelectronics invested in Nanchang Kaixun Optoelectronics in April, aiming to expand the market share of red and yellow light. Jin Zhangyu pointed out that while Zhaozhao Optoelectronics will increase its production capacity, it will also introduce talents comprehensively, enhance product competitiveness, promote flip-chip, high-brightness and rapid production of infrared products, and effectively expand the market of infrared sensing related fields. According to Jin Zhangyu, at present, the dry-light photoelectric red-yellow high-end flip-chip, infrared products have been mass-produced and supplied externally.

In terms of blue-green light, Ganzhao Optoelectronics also adopts a scale-following strategy. In July this year, Ganzhao Optoelectronics Nanchang Base implemented expansion of production, with a cumulative investment of 5 billion yuan in two phases. After the expansion, the monthly production capacity will increase by 1.2-1.6 million pieces. At present, the Nanchang base has started construction, and the first phase is 60-800,000 pieces. Monthly production capacity will be gradually released in 2018.

For the expansion of production, Jin Zhangyu said that the expansion of production is mainly to adjust the product structure, mainly concentrated in some high-end products. At present, the dry photoelectric red and yellow light ranks higher in the domestic market and strives to be the world leader.

In terms of LED general-purpose chips, Jin Zhangyu said that under the circumstances of forming several camps, Ganzhao Optoelectronics hopes to have more vertically integrated cooperation with upstream and downstream enterprises.

For the future of Ganzhao Optoelectronics, Jin Zhangyu said that the follow-up will continue to improve the existing business, while strengthening strategic investment capabilities, investment and acquisition of incremental business, such as innovative incubation investment and bulk mergers and acquisitions.


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