San’an Opto Pours RMB 33.3 Bil into New Semiconductor Projects

San’an Optoelectronics announced, on December 5, 2017, the firm's board meeting passed the Investment Cooperation Agreement, which is going to be co-signed by the firm, People's Government of Quanzhou City in Fujian Province, and People's Government of Nan'an City in Fujian Province.

(Image: San'an Optoelectronics)

According to the Agreement, the company plans to register and set up one or several projects in Nan'an Park "Chipvalley" in Quanzhou City in Fujian Province. The total investment amounts to RMB 33.3 billion, including investments in public facilities. All projects are planned to be put into mass production in five years, and reach their design capacities in seven years. Their operation period will not be less than 25 years. Once the targets are met, its annual revenue is predicted to arrive at about RMB 27 billion (estimation based on current product unit price.)

The announcement lists out the following industrializing projects (including research, development, and manufacture): 1) high-end GaN LED substrate, LED epitaxial wafer, and LED chip; 2) high-end GaAs LED epitaxial wafer, and LED chip; 3) high power GaN lasers; 4) optical communication components; 5) RF & filter; power semiconductor; 6) specialized substrate material and specialized packaging applications.

San’an expressed the firm mainly focuses on III-V compound semiconductor materials’ R&D and applications. Its core businesses are wafer's and chip's new semiconductor materials, including GaAs, GaN, SiC, InP, AlN, and sapphire.

These investment projects are considered emerging strategic industries that the Chinese government emphasizes and actively facilitates. The points are to make San’an's main businesses larger, stronger and excellent, generate maximum synergy effect of the Group's businesses, enrich the company's product categories, integrate supply chain vertically, keep raising market shares, and develop new application segments.

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