Nowadays, the concentration of LED chip industry manufacturers continues to increase, coupled with the continued expansion of key manufacturers in 2017-2018. With the further release of production capacity, there will be another irrational competition in market prices in the future, resulting in a decline in the profitability of LED chip companies. Risks and possibilities. In addition, the quality of the LED chip has a greater impact on the quality of the downstream packaging or end products, and the customer has higher requirements for the consistency, stability, and light decay of the LED chip. If the chip has any problem in the above indicators, it may have a large adverse impact on the quality, which may lead to the claims of downstream customers, and bear the compensation far higher than the value of the sales chip. At the same time, LED technology innovation is active, new materials and new processes are emerging, luminous efficiency is constantly improving, chip size is shrinking, and product upgrades are faster. The continuous updating of technology upgrades and the emergence of new technologies have also placed higher demands on LED extension and chip makers' technological innovation capabilities. For chip manufacturers, if the future product development work can not keep up with the rise of new technologies and new applications in the industry, it will have an impact on the overall competitiveness of enterprises. Faced with the above risks, Huacan Optoelectronics, as the second largest LED chip company in the domestic market, is naturally doing a coping strategy. While increasing the brightness and reliability of traditional products, we also increase investment in research and development of new products. It is understood that Huacan Optoelectronics in RGB Mini-LED chip, LED inverted LED chip, backlight Mini-LED chip, ultra-high efficacy white LED chip, ultra-high current density white LED chip, infrared LED chip, domestic large machine MOCVD R&D projects such as product introduction have been basically completed, and related products and technologies have been applied to batch products. Up to now, the above products of Huacan Optoelectronics have been applied in indoor and outdoor display, general lighting, backlight, automotive lighting, consumer electronics, medical, laser communication and other fields. It is worth noting that the concentration of the LED industry is also accelerating, and customer resources and orders are gathered in large-scale leading enterprises. As the upstream of the LED industry chain, LED chips have become a key competitive factor for upstream companies. Huacan Optoelectronics has been stable in the top two in terms of production and sales. Of course, its competitors are no longer a few. For example, international competitors are mainly Cree, NICHIA and other enterprises; the main domestic competitors are Sanan Optoelectronics, Ganzhao Optoelectronics, Jucan Optoelectronics, Dehao Runda and other enterprises. The relevant person in charge of Huacan Optoelectronics said on the investor interaction platform of the day ago that “the LED industry is an industry with stable growth and full market competition. Huacan Optoelectronics has fully considered the details in maintaining its competitive advantage and optimizing its customer structure. Plan." Facing the competitive pressure from domestic and foreign manufacturers, the person in charge of Huacan Optoelectronics proposed that “Huacan will actively respond to competition from domestic and foreign manufacturers, and will actively seek suitable merger and acquisition opportunities, such as compound semiconductor and MEMS sensor direction. To lay a solid foundation for the company's endogenous and extended-type high-speed growth." In general, with the shrinking business of chip companies in Europe, the United States, Japan, South Korea and Taiwan, Huacan Optoelectronics will seize the opportunity to increase market share by substantially expanding production. In overseas market operations, overseas OEMs and sales of high-end epitaxial wafers in the Korean market continue to increase, covering high-quality overseas customers. Huacan Optoelectronics' competitiveness in overseas markets and brand influence continue to increase. With the deep cooperation between Huacan Optoelectronics and key customers, it will further undertake the industrial transfer of overseas markets in the future, and the sales growth of high-end products can be expected.
Shenzhen Guan Chen Electronics Co., Ltd. is a High-tech enterprise that
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