On the evening of November 23, Jucan Optoelectronics announced that the company signed a Strategic Cooperation Agreement (hereinafter referred to as “this agreementâ€) with Taigu Optoelectronics Technology Co., Ltd. (hereinafter referred to as “Taiguâ€). Taigu is listed on the Taiwan Stock Exchange and its main business is GaN LED diode wafers and die.
Jucan Optoelectronics and Taigu hope that through this strategic cooperation, it will help both parties to further improve overall operational efficiency, reduce operating costs, respond quickly to the market, continuously improve and enhance the technology and quality of epitaxial wafers, and realize the future market of both parties. Expanding strategy and gaining greater market share creates greater business value for both parties.
According to the agreement, Taigu purchases 4†epitaxial wafers from the company on a monthly basis. The monthly purchase volume in the first half of 2018 is 4inch ≥1±2 million pieces, and the monthly purchase volume in the second half of the year is 4inch ≥1.5±0.4 million pieces. The monthly purchase in 2019 The quantity is 4inch ≥2±0.4 million pieces, but the quantity should still be adjusted according to the actual market demand. Finally, the quantity is adjusted according to the market demand. The quality and appearance of the epitaxial film supplied by Party B are in line with Party A’s demand, and the wavelength is based on Party A’s Request for timely adjustment.
Effective from the date of signature and seal by both parties, the cooperation period between the two parties is 2 years, from January 1, 2018 to December 31, 2019.
Jucan Optoelectronics said that based on good trust and based on the long-term development strategy of both parties, the two sides decided to cooperate and work together to develop cooperation in the field of LED epitaxial wafers and chips. With excellent corporate philosophy and professionalism, the two sides form a deep strategic partnership based on the spirit of cooperation of “mutual benefit, mutual benefit, stability, long-lasting, high efficiency and high qualityâ€.
On the evening of the same day, Jucan Optoelectronics also announced that the company's wholly-owned subsidiary Jucan Optoelectronics Technology (Suqian) Co., Ltd. (hereinafter referred to as “Jucan Suqianâ€) plans to sign with Suzhou Purification Engineering Installation Co., Ltd. and Jiangsu Sujing Technology Co., Ltd. The following major purchase contracts are as follows:
Suzhou Purification Engineering Installation Co., Ltd. and Jiangsu Sujing Technology Co., Ltd. are the state-owned key enterprises under the Jiangsu Sujing Group. They are domestic professional companies engaged in the research, development, design, manufacture, installation and commissioning of air-conditioning purification systems. It has the general contracting level of mechanical and electrical engineering construction of construction enterprises, the qualification of contracting for construction of mechanical and electrical installation engineering, the qualification of electronic and intelligent engineering contracting, the qualification of fire protection facilities engineering, the qualification of building decoration and decoration engineering, and the contracting level of building decoration and decoration engineering. Grade B qualification for qualification and architectural decoration engineering design. Have special equipment installation and maintenance license (pressure pipeline GC2, pressure vessel level 1) and medical device manufacturing enterprise license and medical device business license.
Jucan Optoelectronics said that the signing of the above agreement is a positive impact on the company's expansion of production capacity, lower operating costs and enhancement of core competitiveness in the long run. However, due to the long construction period and uncertain investment returns, the impact on the company's performance will be small in the short term.
Throughout the LED chip industry, such as Sanan Optoelectronics, Huacan Optoelectronics, Ganzhao Optoelectronics, and Aoyang Shunchang, etc., have already expanded their production in many rounds. Recently, even the packaging company Zhaochi shares will be converted to LED extension. Chip project. A number of listed companies have admitted in the financial report that their chip production capacity will gradually be released from the second half of the year. Undoubtedly, with the expansion of leading enterprises such as Huacan Optoelectronics, Jucan Optoelectronics, which has an operating income of only 400 million yuan, will face even greater pressure for survival.
In the chip industry, Jucan Optoelectronics is a “newcomer†compared to the above-mentioned companies, and its market influence is far less than several industry leaders. Jucan Optoelectronics expands production in a state where capacity is not fully saturated, and it is highly probable that it will adopt a low-price strategy to grab the market after expansion.
It must be mentioned that with the successive release of the production capacity of several leading enterprises, the LED chip industry is bound to fall into a more intense competition situation, and there will be more uncertain factors in product prices.
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