Sanan Optoelectronics: Only By Reducing The Price Of LED Chips Can The Industry Develop

- Dec 20, 2018-

Since 2016, the LED chip industry has shown a trend of "oversupply and capacity clearance" due to the continuous accelerated expansion of production. Since the fourth quarter of 2017, the price of LED chips has ended a two-year steady upward trend, and the return on investment of LED chips has been gradually depressed. Industry insiders expect that the price of LED chips will continue to slow down quarter by quarter in 2018 and even 2019.——LED Christmas light


In response, Zhang Jiahong, deputy general manager of Sanan Photoelectric (600703) Co., Ltd., said, "The more this time, the better the opportunity will be. For this product with large market space, if the price is not reduced, the LED may not have the hope of development; once the price is reduced, it will drive the industry to develop rapidly. In other words, lower prices will drive market demand further blowout.——LED Christmas light


Xu Chenke, deputy general manager and technology general manager of Sanan Optoelectronic Co., Ltd. (600184) also agreed with this view: "Because the application of LED needs to be life-oriented, and life-oriented needs a low price, so that consumers can accept it more readily. On the other hand, competitive products will also promote the development of the industry system, forcing everyone to innovate.——LED Christmas light


Zhang Jiahong further said that at present, Sanan Optoelectronics Co., Ltd.'enlarges its production and enhances its share','innovates technology research and development', drives the cost down by technological progress and scale advantage, thus offsetting the impact of short-term price fluctuations on gross interest rate. At present, Sanan Photoelectric has a monthly production capacity of 3 million pieces. With the release of the production capacity of Sanan Quanzhou Plant, the production capacity will continue to increase by about 40% in the future.——LED Christmas light


It can be predicted that in the future, under the dual advantages of capacity and technology, the market share of San'an Optoelectronics will continue to increase, and the leading position will continue to be consolidated and even strengthened.——LED Christmas light


Speaking of the success of Sanan Optoelectronics, General Manager Lin Kechuang attributed science and technology and talent to the first element. "Reserve generation, R&D generation and use generation" has always been the technological concept of Sanan Science and Technology. From expanding territory in the field of LED to upgrading and rebuilding in the field of compound semiconductor in recent years, it has played an important role in the growth of Sanan Photoelectric.——LED Christmas light


"Don't think the days are better now, we must look farther." In every transformation and upgrading tide, Lin Xiucheng, founder of San'an Optoelectronics, always has a high-sighted and precise layout. When the tide of 5G and Internet of Things comes, San'an Optoelectronics has rapidly launched the business of compound semiconductor chips, and 33.3 billion pounds have been pounded out to build "Quanzhou Core Valley" to rebuild a third one. Ann.——LED Christmas light


Lin Kechuang, general manager of Sanan Optoelectronics, said that he hoped that with the continuous efforts of generations of Sanan people, Sanan Optoelectronics would be able to create a company with competitiveness at any time, pragmatically understand the current situation of the industry at any time, and also be able to put in relevant technology pragmatically, so as to be a competitive company for a long time in a pragmatic environment. "A competitive company, a century-old shop, that's our real vision."——LED Christmas light


According to Lin Kechuang, San'an optoelectronics mainly makes chips. Now there are four mature industrial modules and developing plates: the first is LED module; the second is RF filter module; the third is power electronic module; and the fourth is optical communication module. In terms of sales, Sanan's products are high-tech products, mainly facing consumers in the direct marketing mode.——LED Christmas light


At present, the LED module is the most mature and accounts for the largest part of sales. In terms of LED, Sanan currently accounts for between 16% and 18% of the global market, so we have a relatively high proportion in terms of chips produced in China. For the future development, we are based on LED, RF filter, power electronic module, optical communication module as the focus of Sanan photoelectric development in the next few decades.——LED Christmas light


Sanan Optoelectronic Linkechuang said that the company has always defined itself as a chip company. The company is building an ecosystem of chips, which can be used in all application scenarios around artificial intelligence, 5G, Internet of Vehicles, Internet of Things and so on. So Sanan's future positioning is still in the chip sector, hoping to create a variety of scenarios of the chip ecosystem. At present, the company has no downstream development strategy, but the downstream application will still cooperate.——LED Christmas light


In the first three quarters, the operating income of Sanan Optoelectronic Company was 6,393,320,305.23 yuan, an increase of 1.76% compared with the same period last year, and the net profit attributed to shareholders of listed companies was 2,593,610,676.06 yuan, an increase of 9.09% compared with the same period last year.——LED Christmas light



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