Zhen Mingli hugely invested in Yangzhou to build LED chip factory optimistic about the backlight market

Reports from the Hong Kong media pointed out that the world's largest lighting company, Tingli, which is preparing to return to Taiwan at the end of the year, is expected to have a serious shortage of LED chips for TV. It will invest 30 million US dollars to produce LED chips in Yangzhou.

According to the Hong Kong Economic Times and the Hong Kong Economic Journal, Zhen Mingli signed an agreement with Yangzhou Economic and Technological Development Zone in October. The entire project will be carried out in three phases. Each phase will install ten MOCVD (metal organic chemical vapor deposition) production lines, which can be produced every month. 20,000 epitaxial wafers.

According to the important information released by Zhen Mingli's Hong Kong Stock Exchange, the first phase production line of Yangzhou LED Factory will be put into operation in June next year, the second phase is scheduled to be installed and put into production in the second half of next year, and the third phase will be installed in 2011.

Chairman Fan Banghong said that in addition to its own use, Yangzhou's products will be sold to other LED manufacturers. Zhen Mingli has expanded so aggressively. In addition to the increasing emphasis on energy conservation and environmental protection in various countries' policies, he also sees that there will be a major demand gap for LEDs used in TV backlights next year.

Fan Banghong said: "Last year, Samsung Electronics produced 3 million LED backlight TVs, which sold out at once. Samsung plans to produce 30 million units this year. These 30 million units can use all the chips, and the chips will be in serious shortage."

In fact, Taiwan's LED manufacturers are also seeing this gap and rushing to enter.

Zhen Mingli believes that its market competitiveness will be reflected in cost and technology, and only those with lower costs and better quality of technology and products will win.

The report mentioned that the LED upstream chip accounts for more than 60% of the cost, and Zhen Mingli started from the sale of finished products, developed to the midstream package, and then engaged in upstream chips.

Fan Banghong said that this is an irreversible strategy, because upstream production cannot compete with customers, but the existing customer base can be developed into a one-stop service.

Chen Ming, director of investment relations at Zhen Mingli, pointed out that the current LED market share of LED decorative lighting and white lighting is about 10% to 20% in the mainland market, and it is hoped that LED sales will account for 70% of total revenue in a few years. 80%.

He mentioned that one of the policies for promoting clean energy projects in mainland China is to update 5.5 million street lamps with LEDs in 21 cities within three years, with an estimated business opportunity of RMB 8 billion, and Zhen Mingli can account for at least RMB 1 billion. Yuan sales.

In the first half of 2009, Zhen Mingli was affected by the international financial crisis and plant and equipment expenses, and the net interest rate fell to 7.6%, which was nearly half of the same period in 2008.

In addition, the Group's financial cost for the first half of this year was HK$2.5 million, an increase of 23.2 times compared with the same period of last year. In the future, with the Yangzhou production line put into operation, the Group's expenses will be even larger.

However, Chairman Fan Banghong is confident that the group's growth in the next year can reach 15% to 20%.

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