The LED chip market balance is hanging on a string, according to LEDinside Senior Analyst Figo Wang. In this article Wang outlines San’an Opto’s LED chip production expansion strategies.

China’s leading LED package manufacturer MLS, which has earned a reputation as “price slasher” in the LED industry, recently announced it will be raising RMB 960 million (US $ 153.87 million) through a Shenzhen IPO to expand its production capacity and increase liquidity, according to a Chinese Business News reports. MLS actions indicates the LED industry is entering another industry restructure phase.

“When I check my phone, there are always a lot of messages from LED manufacturers,” said ETI Chairman Wang Donglei, while pointing to his phone.

ESCATEC, one of Europe's leading providers of contract and manufacturing services, has nearly doubled the size of its ISO Class 7 cleanroom to meet the increasing need for miniaturized, multi-function components and 'smart materials/systems' with new equipment for material preparation, components creation and assemblies.  The expansion includes a 'Future Lab' with advanced state-of-the-art R&D, custom designs, specialised prototyping, and novel process development that will offer leading-edge LED solutions as well as a dedicated workspace next to the cleanroom for 'hands-on' design work with ESCATEC's partners

On Sept. 5, 2014, Chinese LED manufacturer Honglitronic announced it signed an “investment partnership agreement” with Nanchang City government in Jiangxi Province, China, and is currently constructing a new LED manufacturing base in the city. The investment was approved by the company’s board of trustees in a recent meeting, according to a Securities Times report.

Philips Lighting’s U.S. branch has announced plans of investing US$ 2 million in a new LED manufacturing plant in Tupelo, Missouri, according to aWTVA report.

Luxonic has just completed a ten-month programme and a £0.75 million (US $1.27 million) investment in expanding its production facilities in Basingstoke to allow for increase in demand for LED luminaires.

As the LED lighting and backlight industry rebounds, Taiwan’s upstream and downstream LED manufacturers have all expanded to some degree, according to a Commercial Times report. Manufacturers including Everlight, Epistar, Lextar and Harvatek revenue are expected to grow during second half of 2014.

After Epistar and FOREPI’s merger earlier this month, Everlight is also showing a rarely ambitious side, according to a China Post report. The company has decided to expand capital expenditure (CapEx) from less than NT $ 1.0 billion (US $ 30 million) to NT $1.5 billion to NT $ 1.7 billion. The move highlights the LED industry’s high growth.

Increased demands from the LED and backlight application market have spurred sapphire manufacturers to expand sapphire ingot, sapphire wafer, and PSS production, according to the recent 2014 Global Sapphire Substrate Market Report from LEDinside, a division of research organization Trendforce. 

San’an Optoelectronics (San’an Opto) has big plans to become a force to be reckoned with both domestically and internationally. The company is expanding production capacity, releasing announcements one after another, according to a Money DJ report.

San’an Optoelectronics (San’an Opto) released their first quarter fiscal 2014 financial results on April 21, 2014. Production capacity expansion to their LED subsidiaries as well as increased production sales volume boosted operating revenue by 30.7 percent. Government subsidies received in 1Q14 increased non-operating revenue 130 percent YoY.

LEDinside analyst Figo Wang, who has over a decade of experience in the Chinese LED industry, gives a thorough analysis of San’an Opto’s production capacity strategy in this article, and asks whether using this production capacity expansion plan as a threat is successfully deterring competitors.

Optimistic about LED lighting long term developments , Taiwanese secondary optical lens manufacturer LedLink purchased a new factory in Yangzhou at the end of 2012 and expanded production capacity in 2013 which is to continue on into 2014.

Taiwanese LED package manufacturer Edison Opto consolidated revenue for November reached NT $213 million (US $7.2 million), a monthly decrease of 2.23 percent but yearly growth of 32.2 percent. With the year drawing to a close, clients are observing the market before ordering. December revenue is forecasted to remain level.

Sapphire substrate applications have shifted from LED to smartphones, according to a report by Taiwanese media UDN. Apple was the first to apply the material in its iPhone home button, and has recently expanded sapphire substrate applications to fingerprint recognition sensors, camera outer case, and even the entire smartphone monitor. As a result, Taiwanese manufacturers are close to full production capacity. ACME Electronics Corp. subsidiaries including USI Optronics Corp., Crystal Applied Technology Inc., ProCrystal Technology Co., and Crystalwise Technology Inc. have launched a new wave of expansion.