It is reported that LED Epitaxial Factory is actively expanding its new production capacity this year. The mid-chip chip cutting factory Dingyuan (2426) foundry business is expected to grow at the same time.
Dingyuan's foundry customers include Jingdian (2448) and Guangyi (8199). Crystall is expected to increase 22 MOCVD this year, and the number of wide-area will increase from 19 to more than 20. The demand for mid-section cutting will increase. Fu Peiwen, chairman of Dingyuan, said that by the end of the year, the growth rate of LED chips is expected to reach 50%. However, the epitaxial plant will not increase the production capacity in the middle stage, which will enable Dingyuan's foundry business to grow, but only has limited contribution to profit.
LED Epitaxial Plant said that when expanding chip capacity, usually the mid-section cutting capacity will not be fully expanded, and will still retain a certain proportion to outsourcing manufacturers, increasing flexibility. Therefore, upstream production expansion, midstream manufacturers can also benefit.
Fu Peiwen, chairman of Dingyuan, pointed out that the profit of foundry is not good, and that it earns management wealth, which has limited contribution to Dingyuan’s profit. Epistar said that if the market demand is not good, the first thing to cut is the outsourcing capacity. Therefore, this year's epitaxial machine has increased greatly, and the demand for chip cutting has increased simultaneously. However, the growth of OEM orders has been strong, and it is still necessary to observe the demand for the second quarter.
This year's Olympics may be crowded out to the Q3 consumer products market demand, resulting in LED quarterly effect is not obvious, but in the fourth quarter the market has the opportunity to warm up, and there is a prolonged quarterly effect. At the same time, it is emphasized that LED and consumer electronics are highly interlinked, and the peak quarter effect in the second half of the year will still depend on the global economy.
According to the blending, in order to increase the long-term growth momentum of Dingyuan, Dingyuan will also invest in the solar upstream polysilicon plant after the establishment of the Dingyuan. It is expected that the first polysilicon furnace will be put into operation in July and August, and it is estimated that it will start to contribute profit in 2009. The overall investment plan is worth 100 million US dollars. It is expected to be invested in three years. Dingyuan holds about 20% of the shares, and the technical team holds 50% of the shares. The rest is individual shareholders.
Dingyuan's foundry customers include Jingdian (2448) and Guangyi (8199). Crystall is expected to increase 22 MOCVD this year, and the number of wide-area will increase from 19 to more than 20. The demand for mid-section cutting will increase. Fu Peiwen, chairman of Dingyuan, said that by the end of the year, the growth rate of LED chips is expected to reach 50%. However, the epitaxial plant will not increase the production capacity in the middle stage, which will enable Dingyuan's foundry business to grow, but only has limited contribution to profit.
LED Epitaxial Plant said that when expanding chip capacity, usually the mid-section cutting capacity will not be fully expanded, and will still retain a certain proportion to outsourcing manufacturers, increasing flexibility. Therefore, upstream production expansion, midstream manufacturers can also benefit.
Fu Peiwen, chairman of Dingyuan, pointed out that the profit of foundry is not good, and that it earns management wealth, which has limited contribution to Dingyuan’s profit. Epistar said that if the market demand is not good, the first thing to cut is the outsourcing capacity. Therefore, this year's epitaxial machine has increased greatly, and the demand for chip cutting has increased simultaneously. However, the growth of OEM orders has been strong, and it is still necessary to observe the demand for the second quarter.
This year's Olympics may be crowded out to the Q3 consumer products market demand, resulting in LED quarterly effect is not obvious, but in the fourth quarter the market has the opportunity to warm up, and there is a prolonged quarterly effect. At the same time, it is emphasized that LED and consumer electronics are highly interlinked, and the peak quarter effect in the second half of the year will still depend on the global economy.
According to the blending, in order to increase the long-term growth momentum of Dingyuan, Dingyuan will also invest in the solar upstream polysilicon plant after the establishment of the Dingyuan. It is expected that the first polysilicon furnace will be put into operation in July and August, and it is estimated that it will start to contribute profit in 2009. The overall investment plan is worth 100 million US dollars. It is expected to be invested in three years. Dingyuan holds about 20% of the shares, and the technical team holds 50% of the shares. The rest is individual shareholders.
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