Sanan Optoelectronics Announces Its Plan to Double Production Capacity

It is an indisputable fact that LED market has gradually rebounded, but the relative excess of industry capacity is also an unavoidable reality. In the recent two weeks, the leading LED companies have introduced LED expansion plans, of course, Sanan Optoelectronics is no exception, it launched its plan on the evening of May 27 that it will raise funds about 3.3 billion Yuan to expand LED projects.

According to its plan, if the program of Sanan Optoelectronics is implemented successfully, the production capacity of its new LED chip will be doubled. At present, Sanan Optoelectronics has 141 sets of 2-inch MOCVD equipments, while the effective capacity is about 130 units, which have been filled beyond capacity except for a few technological devices. In accordance with this plan, the production capacity of new LED epitaxial wafer will be increased to 1.223 million pieces (calculated at 4-inch epitaxial wafer), while the Blue and Green Chip will be pulled up to 25.614 billion. Sinolink Securities estimates that the production capacity will double as long as the company adds 100 pieces of 4-inch MOCVD equipment.

On May 30, a signing ceremony was held for the cooperation on LED application project with a total investment of over 10 billion between Sanan Optoelectronics and Shenzhen Jia Wei Lighting Corporation. This project covers 300 acres, and it mainly engages in the development, manufacturing and sales of LED application products.

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