On the seventh day of the Lunar New Year, just after the Spring Festival holiday, when many people were still enjoying time with their families, Hua Can Optoelectronics, a leading Chinese company in LED epitaxial chips, made a major move that sent ripples through the industry.
In February, Hua Can Optoelectronics announced its participation in the "Hua Can Optoelectronics Advanced Semiconductor and Device Project Investment Framework Agreement" within Yiwu Information Optoelectronics High-tech Industrial Park. This ambitious project aims to expand the company’s presence in advanced semiconductor and device manufacturing.
The project includes multiple key areas: LED epitaxial and chip production, sapphire substrates, ultraviolet LEDs, infrared LEDs, microLEDs, MEMS sensors, vertical cavity surface emitting lasers (VCSELs), gallium nitride (GaN)-based lasers, and GaN-based power electronics. The total investment is expected to reach 10 billion yuan, showcasing Hua Can's long-term vision and confidence in the industry.
This significant investment comes at a time when the global LED market is expanding rapidly. According to GGII data, China’s LED chip output value reached 18.8 billion yuan in 2017, accounting for nearly 40% of global production. The firm expects this share to exceed 50% by 2019, making it a critical moment for domestic companies to strengthen their positions.
With Sanan Optoelectronics leading the market, Hua Can Optoelectronics is striving to close the gap by investing heavily in expansion. This strategic move not only helps it gain market share but also strengthens its competitive edge over other players in the sector.
In addition to LED chips, Hua Can has been actively developing sapphire substrates. Its subsidiary, Lanjing Technology, possesses strong technical capabilities in sapphire crystal growth, including proprietary methods and equipment. Earlier this year, Lanjing signed an agreement to expand its production capacity, aiming to become one of the world’s largest sapphire substrate manufacturers.
Beyond traditional LED segments, Hua Can is also investing in emerging technologies like infrared LEDs and microLEDs. It has already achieved mass production of infrared LEDs and is working with major customers on microLED development, targeting future applications such as TV and mobile display panels—markets that are significantly larger than current LED chip markets.
Furthermore, Hua Can has expanded into MEMS sensors through the acquisition of Meixin Semiconductor. Meixin is a leader in high-end MEMS devices, with products used in smartphones, automotive systems, and consumer electronics. This acquisition allows Hua Can to diversify its business and extend its industrial chain into the Internet of Things (IoT) and smart devices sectors.
Experts believe that MEMS sensors will play a crucial role in the IoT era. With China’s growing MEMS industry, Hua Can is well-positioned to capitalize on this trend and solidify its leadership in next-generation semiconductor technologies.
By investing in both traditional and emerging fields, Hua Can Optoelectronics is positioning itself as a major player in the global semiconductor landscape, ready to lead in the coming years.
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