China-based LED epitaxial wafer and chip maker Sanan Optoelectronics will expand production capacity by adding 100 MOCVD machines to total of 264 in 2014, according to industry sources.
Sanan has signed with China-based EMC (energy management contract) service provider Fujian Anxin Contract Energy Management to supply LED lighting products worth at least CNY300 million (49.4 million) in 2-3 years. Fujian Anxin will replace conventional lighting with LED lighting for China-based Zijin Mining and its subsidiaries, the sources said.
Sanan is transferring the wafer specifications of its MOCVD equipment from 2-inch to 4-inch. The transition has already reached 30% of MOCVD sets and is scheduled to reach 60% in 2014, the sources indicated.
Sanan aims at revenues of CNY4.5 billion for 2013, with CNY3 billion coming from LED chips, the sources noted. Of Sanan's LED chips, 70% are used in lighting and 25% in backlighting, the sources indicated.
