Jucan Optoelectronics plans to invest 3.5 billion yuan to expand production of Mini/Micro LED products

Jucan Optoelectronics announced at noon on the 4th that its subsidiary, Jucan Optoelectronics Technology (Suqian) Co., Ltd., recently signed the "Investment Contract for Industrial Projects in Suqian Economic and Technological Development Zone" with the Management Committee of Suqian Economic and Technological Development Zone. Jucan Optoelectronics Technology (Suqian) Co., Ltd. will invest in the "Jucan Optoelectronics Production Expansion Project" within the jurisdiction of the Management Committee of Suqian Economic and Technological Development Zone. The total investment is approximately RMB 3.5 billion, with main products being Mini/Micro LED GaN and GaAs chips.

Jucan Optoelectronics stated that the company's products are located in the upstream of the LED industry chain, with high technical barriers and added value. The company's main products are GaN-based high-brightness blue LED chips and epitaxial wafers. The high-brightness blue LED chips produced by the company can be widely used in mid-to-high-end application fields such as lighting and backlight sources after downstream packaging.

With technological advancements, the continuous expansion of application fields, and the steady growth of market size and industry penetration, the domestic LED chip industry is showing an overall growth trend. Industry concentration is gradually increasing, and the market size for high-end emerging applications of LED chips is rapidly expanding. To align with industry development trends and the new dynamics of the competitive environment, the company needs to further strengthen its industrial layout in high-luminous-efficacy LED chips for emerging high-end applications, based on its existing industrial footprint. This will help consolidate and expand market share, enhance the technical level of the company's core products, and improve its market position. Meanwhile, by continuously following the direction of industrial technological development and optimizing the product structure, the company aims to ensure sustainable, rapid, and healthy development, boost profitability, and improve the quality of the listed company, thereby maximizing corporate value and shareholder interests.