On January 11, the production commencement ceremony for gallium arsenide (GaAs) red and yellow light chips took place at the Suqian Economic and Technological Development Zone, marking a significant milestone for the company,  Juzan OptoelectronicsThis event signifies the official entry of Juzan’s red and yellow light project into the mass production phase, heralding the emergence of another all-color Chinese technology firm in the LED chip marketThis development is expected to significantly enhance China's display industry, contributing positively to the technological landscape of the nation.

With an influx of innovative products and applications in the global new display arena, China has been quick to respond with policies aimed at driving digital lifestyles and enabling industrial upgradesThese measures aim to guide both upstream and downstream enterprises in the LED packaging and chip sector towards technological transformations

In alignment with these industry trends, Juzan Optoelectronics has made a strategic shift from a focus on high-quality lighting and backlighting products to a more advanced display product lineupThe transition involves ramping up the construction of their red and yellow light project’s epitaxial wafer and chip production lines.

A noteworthy highlight of this project is the remarkable efficiency with which it was executedWithin less than a year, Juzan has constructed a large-scale, technologically challenging production line for red and yellow light chips and successfully initiated productionThis accomplishment not only sets a record for the company but also sets a benchmark within the industry for rapid production scaling.

According to reports from the Securities Times, the first phase of the red-yellow light project involved significant investment totaling 1.05 billion yuan (approximately $150 million), and it has the capacity to produce up to 2.4 million Mini-Micro micro-pitch LED display chips annually

The primary markets for these chips include large screen displays, automotive displays, and micro-pitch displaysOnce fully operational, the project is anticipated to generate more than 600 million yuan in annual revenue, contributing over 100 million yuan to profits per year.

Key personnel from Juzan highlighted that with the establishment of full production lines for both the epitaxial and chip components of the red and yellow light project, the company now possesses the capabilities to research and mass produce a full spectrum of chip productsThis will not only enhance the existing product structure but also bolster the supply chain capacity for Gallium Nitride (GaN) based blue and green chips alongside GaAs based red and yellow chipsAdditionally, the company aims to expand its offerings in burgeoning markets like Mini and Micro LED displays while strengthening its development layout for automotive pre-installed and aftermarket products

Their goal is to enhance manufacturing and quality control systems specific to automotive standards, creating a comprehensive suite of products that includes RGB Mini direct display technology, inverted silver mirror automotive lights, automotive backlighting solutions, full-color transparent screens, and energy-efficient LED plant lights, thus solidifying their position in the full-spectrum energy-saving chip market.

Within the increasingly competitive and rapidly evolving display market, the interplay between red-yellow light chips and blue-green light chips is integral to formulating products that meet market demands while delivering high-quality display resultsIndustry professionals have indicated that the combination of these chip types is essential for constructing RGB modules, which are critical for accurate color reproduction and vibrant visual presentation in display technology.

The technological advancements accomplished in red-yellow light chips present unique advantages and showcase vital value within this niche

alefox

The challenges presented by the research and development of red-yellow light chips necessitate significant investments of manpower, resources, and timeHowever, due to the elevated technical barriers associated with such innovations, successful mastery and scalability present considerable financial returnsFurthermore, these chips can synergistically enhance the market development of blue-green light chips.

When this synergy reaches its full potential, it will not only increase the market share and sales volume of blue-green light chips, but also improve the overall performance of the companyThe high returns on red-yellow light chips shall, when combined with the growth in sales attributed to the synergy with blue-green chips, create a mutually reinforcing effect that will bolster the company’s performance metricsThis forward momentum will provide Juzan with a robust competitive edge in the marketplace, facilitating the pursuit of greater objectives and solidifying its stature within the display industry.

From a regional development perspective, the Suqian Economic and Technological Development Zone is currently at a crucial juncture of growth, marked by a clear and forward-thinking development strategy

This development zone is actively building a new industrial ecosystem for optoelectronic displays, aiming to create a comprehensive value chain that encompasses everything from raw material supply and chip research to manufacturing and final product assemblySuch an ecosystem is poised to attract more upstream and downstream enterprises, thus fostering an industrial clustering effect that promotes efficient resource integration and sharingThis collective effort will drive the emergence of new productive forces in the region.

Additionally, the development zone has already established a strong and cooperative relationship with Juzan Optoelectronics, and this partnership is expected to deepen in the futureEfforts will continue to leverage both entities' strengths to attract advanced talent in new display technologies from both domestic and international arenasBy securing high-quality projects and enhancing resource integration, the aim is to improve the overall competitiveness of the optoelectronic display industry within the region