On October 20, SZZC Electronic Technology Group, a leading manufacturer of LED epitaxial wafers and LED chips in China, said in an interview with Hay Think that SZZC's gallium nitride LED chip project started production in the fourth quarter of last year, and the monthly production capacity of blue chips has reached 500,000 four-inch tablets. The sales part of gallium nitride LED chips has already been supplied to domestic customers in batches, and the inspection by Korean manufacturers has passed.
In the future, as SZZC's chip production capacity is gradually reached, it will continue to increase market development efforts to gradually build international and domestic product competitiveness while meeting its own needs.
SZZC said that LCD TV ODM business has always been the company's core business. In 20H1, global TV foundry shipments dropped by 7.1% year-on-year, but SZZC achieved a year-on-year growth in shipments of 29.5%, and its market share has risen from fifth in the world at the beginning of the year to third in the world in the first half of the year. The global ranking rose to second in some months of the third quarter.
As the market picks up, LCD TV panel prices have risen sharply since May. In this regard, SZZC said that LCD panels account for a relatively high proportion of the cost of LCD TVs. The increase in panel prices will increase the company’s raw material costs, and the gross profit margin will be under certain pressure. This is also a situation that the entire industry will face. Measures such as raw material procurement strategies, improving production efficiency and shortening production cycles reduce the impact of panel price increases on the company's gross profit margin.
Regarding Xiaomi TV, SZZC stated that Xiaomi was previously a cost-effective Internet brand in the concept of mass consumers, and now it is beginning to push high-end TVs on behalf of Xiaomi's desire to expand its customer base and work towards high-end groups. At present, not only Xiaomi, but also Apple, Huawei, Samsung and other giants in the industry are launching Mini LED related products. Some domestic TV brands are also following up. On the one hand, the development of Mini LED technology can bring better products to consumers. Visual experience, on the other hand, the technological innovation of LCD TVs will bring more demand for upgrading.
SZZC's Mini LED can provide customers with corresponding solutions from chip to package, and TV ODM. At the same time, it has a forward-looking layout in terms of technology, quality and production capacity, and can respond to market demand at any time. In the future, the volume of Mini LED market will also drive the company's profit growth.