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.

San’an Opto announced Tuesday it has suspended trading on China’s bourse, due to the uncertain outcome of partnership talks with China National Semiconductor Industry Investment Fund.

San’an Opto reported the company’s net profits soared during first quarter in 2015.

San’an Opto’s board recently approved its Xiamen arm’s MOCVD procurement method plans, according to a recent company statement.

A major Epistar shareholder has demanded for Chinese LED chip manufacturer San’an Opto to withdraw investments in the company, due to the Chinese company’s headhunting activities, according to a recent Economic Daily News report.

Global LED package market is estimated to achieve US $14.6 billion in 2014, and grows at a CAGR of 3.2% during 2014-2018. Among all LED applications, LED lighting has the highest estimated revenue of US $4.8 billion in 2014, soaring with a CAGR of 12%. These figures suggest that LED lighting market has entered a high growth phase. Nevertheless, the prices of LED lighting products, such as lighting bulbs and tubes show a steady downfall trend.

Another challenging year awaits Taiwanese manufacturers as major Chinese LED chip manufacturer San’an Opto acquires a total of 100 MOCVD reactors in September and December and have said that the company will continue to headhunt Taiwanese experts, according to a report of China Times.

The Chinese central government recently issued a statement requesting local governments to stop issuing LED chip and wafer subsidies or offer favorable tax conditions.

San’an Opto is expected to fully benefit from the growing LED market value, according to a report from China Finance Media.

San’an Opto has decided to allocate a total of RMB 500 million ($80.03 million) to three subsidiaries including Anhui San’an Opto, Tianjin San’an Opto, and Xiamen San’an Opto for production expansion, according to a latest company announcement.

The Chinese central government’s policy to terminate LED industry subsidies will be extended to local governments, according to a latest Chinese-language UDN report.

San’an Opto’s plans of installing another 50 MOCVD equipment was approved by the company board on Dec. 11, 2014, according to several Chinese media reports.

Top Chinese LED manufacturer San’an Opto has swapped its shares in FOREPI for leading Taiwanese LED chip maker Epistar shares, the Investment Commission of Taiwan’s Ministry of Economic Affairs (MOEA) announced Tuesday.

Chinese LED manufacturers scaled up production again, according to a Liberty Times report. German MOCVD manufacturer Aixtron announced it received 50 MOCVD orders from major Chinese LED chip maker San’an Opto. The new equipment will be shipped and installed by fourth quarter 2014. The rebounding LED industry will be impacted if San’an Opto continues to expand production capacity.

The merge between Taiwan’s two largest LED manufacturers Epistar and FOREPI has established the trend of forming alliances in the country’s LED industry, and the dawning of the oligopoly market. Since the two company’s merge on June 30, 2014, FOREPI has received LED lighting OEM orders from Epistar. No further restructures and adjustments have been made so far. What were the actual circumstances behind the birth of the new Epistar? What exactly happened behind the scenes? In this in-depth interview with Epistar Chief Financial Officer and Spokesman Rider Chang, LEDinside probes into the company’s mindset during the recent merge.

The merge between Taiwan’s top LED chip manufacturers Epistar and FOREPI will no doubt be remembered as one of the most significant events in the LED industry in 2014. Market rumors about the two companies potential “marriage” first surfaced in 2007, but has been repeatedly denied by Epistar. The company’s last minute press conference announcement about the merger on June 30, 2014 sent shockwaves throughout the industry.

China based San’an Optoelectronics (San’an Opto) released their 2014 half year (Jan. 1, 2014 to June 30, 2014) financial report, announcing a net profit of RMB 648 million (US $104.6 million), up 40 percent from RMB 462 million in the first half of 2013. 

While most factories had closed their doors for the night yesterday, over 300 San’an Optoelectronic (San’an Opto) employees were hard at work burning the midnight oil, to pump out new wafers to meet increasing demands. 

Since Epistar’s announced the merger with Taiwan based LED manufacturer FOREPI, the industry has been concerned about rival San’an Optoelectronics (San’an Opto) potential to undermine Epistar’s management.  

Once news broke of Epistar’s acquisition of FOREPI, all eyes turned to China based chip manufacturer San’an Optoelectronics (San’an Opto), eager to see how the company would react. 

China based San’an Optoelectronics (San’an Opto) has signed a three year cooperative agreement with Honglitronics on June 24 in hopes of increasing domestic market share in the LED market. 

San’an Opto announced recently subsidiary Fujian Jingan Optoelectronics RMB 11.58 million (US$ 1.86 million) subsidy application was approved by Anxi County Bureau of Finance in China. The subsidiary has received the full sum of the subsidy.

Shanxi Securities recently investigated San’an Optoelectronics (San’an Opto) to gain a better understanding of the company’s production capacity and manufacturing situation. 

May 15, 2014---LED chip market scale reached RMB 9 billion (US$1.45 billion) in China in 2013, a YoY of 16%, according to the latest “2014 Chinese LED Package Industry Market Report” by LEDinside, a research division of TrendForce. 

San’an Opto has raised about RMB 3.24 billion (US$ 530 million) by privately issuing a total of 151 million stocks to eight specific investors, according to a recent report by Chinese-language Aastocks.com. The funding raised is equivalent to building a new San’an Opto enterprise. 

San’an Optoelectronics revealed their 3Q financial report on October 30th.

Pricing trends have improved in the Chinese LED industry, compared to the same period last year, said San’an Optoelectronics Fujian Province Vice President Simon Lin at LEDforum Taipei 2013. San’an Opto electronics 4Q13 revenue performance is kept at a growth rate of five to eight percent. With most equipment reaching full production capacity, the company is planning to add 100 MOCVD equipment in 2014.