2022 is about to pass halfway. Looking back on the LED industry in the past few months, the new display technology of Mini/Micro LED deserves to be the protagonist, and the key word of the protagonist is still "production expansion". Almost the entire industry chain, from equipment, materials, chips, packaging, modules to display screens, has sung this theme, showing great confidence in the Mini/Micro LED industry. Just as the first half of the year will end, another company on the LED chip side announced a new expansion plan.

Jucan plans to raise no more than 1.2 billion to expand production of Mini/Micro LED chips

Yesterday (21) evening, Jucan Optoelectronics disclosed a plan to issue A shares to specific targets, announcing that it plans to raise no more than 1.2 billion yuan to invest in Mini/Micro LED chip research and development and manufacturing expansion projects. The main body of the project is its holding subsidiary Jucan Suqian, and the follow-up company will implement the project by increasing capital to Jucan Suqian.

The total investment of the project is 1.55 billion yuan, and the specific construction content includes plant construction and the purchase of equipment required for production. After completion, an annual production capacity of 7.2 million Mini/Micro LED chips will be formed.

It is worth noting that in order to meet the growing demand for Mini/Micro LEDs, Jucan Optoelectronics started production expansion as early as 2020 and established two related projects.

The first is the expansion project of Jucan Optoelectronics, with a total investment of 3.5 billion yuan. The production products include Mini/Micro LED gallium nitride and gallium arsenide chips; the second is the expansion and upgrading project of high-efficiency LED chips, with a total investment of 950 million yuan. In addition to Mini/Micro LED chips, the production products also include high-end products such as automotive lighting and high-power LED chips. After the project is completed, it will form a production capacity of 9.5 million blue-green LED chips per year.

In the first half of the year, Jucan Optoelectronics revealed that the company's production expansion project is progressing smoothly, and the Mini LED production capacity is about to enter the release period. Judging from the existing production capacity planning, the company will continue to expand production. The establishment of this new production expansion project shows that Jucan Optoelectronics is promoting the implementation of the production capacity expansion plan as planned, which is also in line with its business strategy of "adjusting structure, improving performance, creating benefits, and building a brand".

At this stage, Jucan Optoelectronics is closely following the pace of the market, and its development focus is on Mini LED. Judging from the performance of products and market development, Focus Optoelectronics has begun to cooperate with several mainstream backlight display or backlight module manufacturers to carry out projects, and many products have passed customer verification. In the short term, Jucan Optoelectronics will launch Mini LED series products and strive to gradually achieve sales.

With the gradual release of new production capacity from existing expansion projects, Jucan Optoelectronics is expected to seize business opportunities in the high-volume stage of the market and gain a certain market share. The construction and implementation of subsequent new production expansion projects will further provide it with sufficient production capacity to fully cope with the outbreak of demand.

The signal of the market's heavy volume has already appeared, and the pace of expansion of the chip factory is advancing

In 2021, the layout and promotion of major brands such as Samsung and Apple will effectively stimulate the enthusiasm of major consumer electronics brands and the Mini LED backlight industry chain, and the number of entrants will continue to increase.

Taking Mini LED backlight TV as an example, major manufacturers such as Sony and Sharp have been added to the terminal lineup this year; there are more new players in Mini LED backlight display and notebook computers, such as MSI, Lenovo, Cooler Master, and Gigabyte. Driven by various forces, TrendForce estimates that the overall shipment of Mini LED backlight displays will reach 17.6 million units in 2022, with an annual growth rate of about 83%.

It can be seen that the market demand for Mini LED backlight is still promising. In fact, Mini LED practitioners generally believe that the market demand has always been there, and will reach a burst point as the price drops to the sweet spot. The cost reduction has been shown in this year's Mini LED backlight TV products, such as TCL and Huawei, which have launched new products with higher cost performance.