San'an Optoelectronics expected to be primary supplier of Samsung

Some applications of LED chips manufactured by Xiamen San'an Optoelectronics [Photo provided to chinadaily.com.cn]

An advance payment agreement was recently signed between Xiamen San'an Optoelectronics Co and Samsung Electronics, according to an announcement by San'an.

The agreement states that Samsung is expected to pay San'an an advance payment of $16.83 million for LED chips and if Samsung's monthly order size is likely to exceed a maximum quantity, the two sides will discuss expansion of San'an's facilities.

Samsung would consider making San'an its primary supplier when San'an is capable of mass production of Micro LEDs, according to the head of San'an.

Industrial insiders believe that LEDs are still the most popular light source in the world and with new applications brought by advanced technologies, LEDs enjoy broad prospects.

Xiamen's optoelectronics industry generated about 150 billion yuan ($23.55 billion) in 2017, with the LED industry accounting for 27 percent of the total output value.

The LED epitaxial chips manufacturing base in Xiamen, including San'an Optoelectronics Co, Xiamen Changelight Co, and Kaistar Lighting (Xiamen) Co, has laid claim among such bases in China to the largest scale, the most complete variety and the most advanced technologies for the past 13 years.