The LED chip market is in short supply, and the first-tier manufacturers are accelerating the enclosure.

[Text|High-tech LED reporter Zhao Hui] Since the first half of this year, with the start of the downstream application market, the demand for chips in the midstream packaging enterprises has soared. Although the chip market is in short supply, the price has not rebounded, but the price cuts have slowed down, and the phenomenon that the chip market does not increase profits continues.

With the first-mover advantage of capacity and technology, the first-line chip makers continue to smash the market space of second- and third-line chip companies. Taking Sanan Optoelectronics as an example, the company has signed many domestic packaging companies since the second half of last year. The cooperation agreement, on the one hand, finds a good sales channel for the huge production capacity in advance, and also attempts to cut off the hope of other chip companies to enter these packaging manufacturers.

Sanan Optoelectronics Accelerated Enclosure "G20-LED Summit Member Enterprise" Hongli Optoelectronics signed a "Strategic Cooperation Agreement" with Sanan Optoelectronics Co., Ltd. on June 24, 2014. Agreement: The strategic cooperation period is three years. During the first year of the agreement period, from April 2014 to April 2015, the company purchased LED chips from Sanan Optoelectronics, amounting to RMB 280 million (according to the market). Changes in circumstances, the amount of change is ±15%). The purchase variety and amount for the next two years of the agreement period will be negotiated separately by the parties in December of the previous year and signed by a written supplemental agreement.

Hongli Optoelectronics said that through this strategic cooperation, the company and Sanan Optoelectronics to establish a strategic partnership, which is conducive to the stability of the company's main raw material LED chip supply, reduce production costs.

Prior to this, Sanan Optoelectronics has signed a similar "strategic cooperation agreement" with a number of domestic packaging companies, involving more than 1 billion chips sold.

It is worth noting that in the contract, the relevant content of jointly developing new products is specified. According to market analysts, Sanan hopes to firmly grasp these packaging companies, and the mutual exchange of market information is the focus of the industry.

Sanan Optoelectronics has just announced that it will move the original Wuhu Phase II epitaxial chip project to Xiamen.

The total investment of the project is 10 billion yuan. The total scale is 200 MOCVD (based on 2 inches and 54 pieces). The first phase starts 100 MOCVD equipments. The construction period is one year. All the workshops and related production facilities are built within two years. The remaining 100 MOCVDs will be started after the first phase of the equipment is fully put into operation, and will be put into use no later than the end of 2018.

Immediately afterwards, Sanan established a joint venture with Seoul Semiconductor. The most important part of the joint venture is that the joint venture company will lease assets of Sanan Optoelectronics related factories, production workshops, equipment and facilities for production, and SVC will purchase LED products of the joint venture company. The term of the joint venture is at least three years.

Some insiders believe that the related party mentioned in the announcement refers to Wuhu Sanan, which means that Wuhu Sanan will rent MOCVD and other equipment to the newly established joint venture to produce epitaxial chips and other products, and sell them to SVC, to a certain extent. Speaking is a disguised chip foundry.

"The establishment of this joint venture company is mainly to find a new seaport for the chip, and strengthen the chip export business through Seoul Semiconductor." Wang Qing, the director of Sanan Optoelectronics, said in an interview with Gaogong LED that 2013 Sanan Optoelectronics Co., Ltd. The approximate proportion of chip exports is between 10% and 15%, and will continue to expand the proportion of exports in the future.

For the view of the "chip foundry" outside, Wang Qing said that it can be said. But more importantly, the sales of chips are eager to open quickly, especially in the context of the new round of chip industry capacity expansion.

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