Ganzhao Optoelectronics Co., Ltd. was founded in 2006, initially focusing on red and yellow LED chips. The company made a significant leap in 2010 by going public, setting a record for the fastest time it took for a Chinese firm to reach the stock market from its inception. In 2014, Ganzhao expanded into the blue-green optical chip sector, marking a strategic shift that would shape its future growth. By 2016, Hejun Group joined the company's leadership, bringing in new resources and management expertise.
As a leading player in the LED chip industry, Ganzhao has always been proactive in adapting to market changes. At the 2017 Gaogong LED High-tech Annual Meeting, Jin Zhangyu, the Chairman of Ganzhao Optoelectronics, delivered a keynote speech titled "Strategic Choice of Semiconductor Enterprises in Industrial Transformation." In his address, he emphasized the importance of strategic planning in navigating the evolving landscape of the optoelectronics industry.
The company is currently based in Xiamen, with additional production facilities in Yangzhou. The Xiamen base specializes in blue-green light chips, while the Yangzhou facility focuses on red and yellow LED chips. Ganzhao has invested heavily in manufacturing infrastructure, including 20 MOCVD devices for red and yellow LED production, with a monthly epitaxial wafer output of 170,000 units. Since entering the blue-green chip market in 2014, the company now produces 400,000 units per month at its Xiamen facility, which houses 50 MOCVD machines and an annual epitaxial wafer capacity exceeding 400,000.
In terms of strategy, Jin Zhangyu described Ganzhao’s approach as "scale follow," emphasizing the need to keep pace with industry leaders while maintaining technological innovation. He believes that China's semiconductor lighting industry will eventually become the global leader, driven by industrial integration. With the market becoming increasingly competitive, Ganzhao aims to position itself as a major player, targeting around 70% of Sanan’s production capacity after next year’s expansion.
Despite being a relative newcomer in the chip industry, Ganzhao is focused on high-value products and advanced technologies rather than just volume. The company is investing in emerging areas like MiniLEDs and new display technologies, aiming to gain a foothold in these markets through strategic resource allocation and targeted investments.
In April 2023, Ganzhao invested in Nanchang Kaixun Optoelectronics to strengthen its presence in the red and yellow light market. The company is also expanding its talent pool, enhancing product competitiveness, and accelerating the development of flip-chip, high-brightness, and infrared products. These efforts are helping Ganzhao expand into the growing infrared sensing market.
For blue-green light chips, Ganzhao continues with its scale-following strategy. In July, the Nanchang base began a two-phase expansion, with a total investment of 5 billion yuan. After completion, the monthly production capacity is expected to increase by 1.2 to 1.6 million units. The first phase, with a capacity of 600,000 to 800,000 units, is already underway and will be gradually ramped up in 2018.
Jin Zhangyu emphasized that the company’s production expansion is not just about increasing output but also about optimizing product structure and focusing on high-end solutions. Ganzhao aims to maintain its strong domestic position in red and yellow light chips while striving for global leadership.
Looking ahead, Ganzhao plans to continue improving its existing operations while strengthening its strategic investment capabilities. This includes exploring innovative incubation projects and pursuing mergers and acquisitions to support long-term growth. As the LED industry evolves, Ganzhao remains committed to innovation, efficiency, and sustainable development.
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