14 Expansion Plans in China’s LED Industry 1H17 Part I

1H17 has been a hectic time for the LED industry, especially for Chinese up- and midstream manufacturers. The recouping demand lightened up the market sentiment and many A-list companies reported their large investments which LEDinside would like to share with you here.

A Whopping RMB2 Bil. Fund for SHINEON's Project in Nanchang

On June 30, SHINEON, favored by Jiangxi province and Nanchang city governments, was invited to a signing ceremony of a contract to recruit enterprises to establish major industrial projects in the city. The company reached a consensus with the city government on a project of a high-quality LED component module production base. The project is estimated to receive a stunning RMB 2 billion funding. The base will be located in the Nanchang National High-tech Industrial Development District. SHINEON will construct 300 production lines of LED packages and modules through the first phase. These new lines are anticipated to generate an annual output value of more than RMB 1 billion once hitting the design capacity.

SHINEON is a leading innovative LED firm in the Northern China area. As a famous brand name of high-quality LED component and module, SHINEON built a LED research, development and production base in Beijing Economic Technological Development Area.

SHINEON's CEO expressed, "after this construction in Nanchang National High-tech Industrial Development District finishes, two manufacturing bases will be formed in Beijing and Nanchang. With advantages in international business and R&D in Beijing, along with industrial clusters in Nanchang, SHINEON will accelerate the production scale-up of high-quality LED packages and modules to satisfy fast-growing general lighting demand, specialty lighting demand and display applications in China and overseas.

SHINEON, as a partner of the Nanchang Optical Valley program, will continue being innovative and making the firm more commercialized, in order to accumulate strongly & sustainable development momentum for Nanchang local industries and economy."

MTC Invested Over RMB 1.5 Bil. in LED Epitaxial Wafer & Chip Projects

On June 30, MTC announced it would invest an amount of over RMB 1.5 billion but less than RMB 1.6 billion in a construction of the LED epitaxial wafer & chip projects in Nanchang National High-tech Industrial Development District. The phase-one project plans to install and calibrate related equipment and will officially start to operate in 2018. By then, the new output value MTC will generate is going to be about RMB 6-7 billion from its integrated LED businesses.

Vertical Integration: Lextar's New Base in Chuzhou

In April, Taiwanese vertically-integrated LED company Lextar announced an investment agreement with Chuzhou city government in Anhui province. Lextar would carry out a project to build vertically-integrated LED plants in the Suzhou & Chuzhou Modern Industry Park. This project would cover an area of 120 thousand square meters. It is scheduled to break ground before the end of 2017 and start mass production in 2019. The factories will hire about 3,000 employees.

Osram Shelled Out More for Wuxi Base's Phase-two Project

On April 19, Osram held the signing ceremony for Wuxi factories' phase-two project to increase funding for capacity expansion. This project is scheduled to start soon in August 2017, and the mass production is expected to begin in early 2019. The company will build new and highly automatic production lines as well as 22,000-square-meter clean rooms. It will also investest 195 million Euros in new packaging & testing equipment, possibly creating over 2000 job vacancies. The expansion is anticipated to generate a revenue of 210 million Euros.  

Xiamen Changelight Spent RMB 736 Mil. on New Red and Yellow LED Capacity

Changelight announced on May 8 that it planned on investing RMB 736.5 million to volume up production of red and yellow LEDs and triple-junction GaAs solar cells. The new major equipment will be 20 units of AlInGaP-based compound MOCVD and chip production equipment. Based on estimation, annual revenue might reach RMB 549.0046 million, and annual net income may come to RMB 469.2347 million.

NationStar Expanded capacity for Display Component

On March 13, NationStar announced, based on LED packaging market directions and existing customers' demand, the firm would invest around RMB 200 million to expand capacity of display components. The project construction would start from March 2017 to July 2017.


(All logo credits belong to the companies. The article is translated by Janet Chen, Translator at TrendForce.)

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