Guoxing Optoelectronics plans to raise 500 million plus code LED chip second phase project

On September 11, Guoxing Optoelectronics (002449) announced that the company intends to issue no more than 90.05 million shares to no more than 10 specific investors, and the issue price is not less than 6.96 yuan/share. This time, the company plans to raise no more than 630 million yuan to invest in the National Star Semiconductor Epitaxial Chip Project (Phase II) (hereinafter referred to as the second phase of the chip) and supplement the working capital, of which 500 million for the National Star Semiconductor Epitaxial Chip Project (Phase II) Construction, 110 million supplementary company liquidity.

The plan shows that the total investment of the second phase of the chip project is 620 million yuan, and Guoxing Optoelectronics plans to invest 500 million yuan. After the project is completed, it will produce 4.10 million pieces of LED epitaxial wafers, 2.005 million pieces, and 3.66 billion pieces of large and medium-sized chips. The epitaxial wafers are all used to produce chips. The construction period of the project is 15 months. It is estimated that the annual sales income will be 532 million yuan and the net profit after tax will be 83.47 million yuan.

Guoxing Optoelectronics said that the non-public offering will further strengthen the company's "vertical integration" business structure in the LED industry and improve the market competitiveness of the company's packaged products.

In fact, Guoxing Optoelectronics started the construction of the first phase of the chip project in 2012. The first phase of the project has a total investment of 1.039 billion yuan, introduced 20 MOCVD production lines and corresponding chip production equipment, and built a production plant that meets 50 MOCVD production lines and corresponding chip production equipment. It is expected to form an annual production capacity of 960,000 epitaxial wafers and 6.336 billion chips. Guoxing Optoelectronics has said that after commissioning and small batch production, the company expects to achieve mass production of the first phase by the end of September.

The reporter noted that the data of the High-tech LED Industry Research Institute (GLII) shows that as of the end of 2012, the number of domestic MOCVD has reached 917, and last year's MOCVD capacity utilization rate was only about 30%, which has already caused concerns about overcapacity in the market. After the above two projects of Guoxing Optoelectronics are put into production, the company's total semiconductor chip production capacity will reach 10 billion per year. This will undoubtedly test the company's ability to digest in the future.

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