Osram's most advanced LED chip factory has officially opened, marking a significant step in its high-tech strategy. Meanwhile, Jucan Optoelectronics is collaborating with Taigu Optoelectronics to secure a larger market share. Guangdong Ganhua recently auctioned Deli Optoelectronics for 300 million yuan, raising questions about why they chose to exit the LED business despite losses. What’s happening with Zhongshan Fanrui Photoelectric? Why are small and medium-sized enterprises struggling to survive? Let’s take a closer look at these stories one by one.
Osram Launches Its Most Advanced LED Chip Factory
On November 23, 2017, OSRAM officially opened its new LED chip factory in Kulim, Malaysia. At the opening ceremony, Olaf Berlien stated, “The Kulim factory was completed on time and within budget. The OSRAM LED business is expected to grow by 19% in the near future. We are excited to expand our production capacity under this positive momentum.â€
Comment: In November 2015, OSRAM announced plans to build a new LED chip factory in Kulim, with completion scheduled for late 2017. This project is part of OSRAM’s broader "Diamond" innovation and growth strategy. As of the first phase completion, OSRAM had invested 370 million euros. The factory will undergo two more expansion phases, with a total investment of 1 billion euros, including enhanced assembly capabilities across OSRAM’s global network.
In recent years, Chinese chip manufacturers such as Sanan Optoelectronics, Huacan Optoelectronics, Aoyang Shunchang, and Ganzhao Optoelectronics have been expanding their production capacities to capture a larger market share. The completion of the OSRAM Kulim factory not only strengthens OSRAM’s production capabilities but also increases competition for domestic manufacturers. Some of the plant’s output will be directed to China, intensifying pressure on local players.
However, growing demand in areas like IR LEDs, smart lighting, specialty lighting (such as plant lighting), automotive lighting, and wearables is driving higher demand for specialized LED chips. OSRAM’s strong R&D capabilities and focus on high-tech fields position it well for differentiated growth in the coming years.
Jucan Optoelectronics Partners with Taigu Optoelectronics
On November 23, Jucan Optoelectronics announced a strategic cooperation agreement with Taigu Optoelectronics Technology Co., Ltd. Under the agreement, Taigu will purchase 4-inch epitaxial wafers from Jucan on a monthly basis. The initial target for 2018 is 1–2 million pieces per month in the first half and 1.5–0.4 million in the second half. For 2019, the monthly purchase volume is expected to reach 2–0.4 million, subject to market demand. The quality and wavelength of the wafers must meet Taigu’s specifications and be adjusted promptly as needed.
Comment: This partnership between Jucan and Taigu aims to enhance operational efficiency, reduce costs, respond quickly to market demands, and improve the quality of epitaxial wafers. It aligns with Jucan’s long-term strategy to increase market share and create greater commercial value for both parties.
However, Jucan faces stiff competition from industry leaders like Sanan, Huacan, and Aoyang Shunchang, which are rapidly expanding their production. Additionally, international players like Osram are setting up manufacturing facilities in China. As a relatively new player in the capital market, Jucan must be cautious in its expansion. Nonetheless, this collaboration supports its growth and helps absorb production capacity in the long run.
Guangdong Ganhua Sells Off Deli Optoelectronics for 300 Million Yuan
On November 22, Guangdong Ganhua announced that it would continue to publicly transfer 100% equity and creditor rights of Deli Optoelectronics. After reviewing the company’s performance and previous market reactions, the company decided to lower the starting price from 678 million yuan to 300 million yuan.
Comment: Since 2011, Deli Optoelectronics had entered the LED chip market with high expectations. However, Guangdong Ganhua continued to face losses in the LED sector. In 2016, Deli Optoelectronics reported a net loss of 92.82 million yuan, and by the first three quarters of 2017, the loss had reached 31.7 million yuan. Despite efforts to sell the business, the process has been challenging, with multiple price reductions over time.
Despite the drop in the sale price, Guangdong Ganhua may still suffer significant losses. However, given the current state of the LED industry, where profitability is shrinking, exiting the LED business appears to be an unavoidable decision. The company is likely looking to focus on more profitable ventures moving forward.
Another Lighting Factory Owner Is Gone—What’s Going On?
Recently, reports surfaced about another lighting factory owner who disappeared without a trace. The affected company is Zhongshan Fanrui Optoelectronics Technology Co., Ltd. According to workers, the owner suddenly went missing, and equipment was removed from the factory. Employees are now searching for the owner’s whereabouts.
Comment: Fanrui Optoelectronics specializes in the research, development, production, and sales of lighting products, LED components, and related accessories. Its operations also include import and export activities.
The LED lighting industry today is highly polarized. Major listed companies like Sanan Optoelectronics, Mulinsen, and Op Lighting are growing rapidly, increasing their market shares year by year. On the other hand, small and medium-sized enterprises are struggling to stay afloat. This year saw several closures, including Siguang Lighting and Kaisheng Co., Ltd., while others like Qinshang and Guangdong Ganhua have sold off their LED businesses.
While the overall LED industry is recovering, profit margins are shrinking. Large companies benefit from economies of scale and diversified strategies, while smaller firms are forced to operate in increasingly tight spaces. As the industry becomes more concentrated, SMEs that cannot differentiate themselves risk being left behind.
Maintenance Free Nickel-Cadmium Battery
Maintenance Free Nickel-Cadmium Battery
Maintenance Free Battery,low maintenance nicd battery
Henan Xintaihang Power Source Co.,Ltd , https://www.taihangbattery.com