It is reported that Sanan Optoelectronics has reduced prices by 10-15% to compete for Apple's Mini LED orders, and the response has come
September 14, 2022
Core Tip: On September 13, according to DIGITIMES reports, industry insiders revealed that Sanan Optoelectronics, the largest LED chip manufacturer in mainland China, has reduced its offer by 10-15% to compete with Taiwan's Epistar for Apple's LCD use. Mini LED chip orders for panels.
On September 13, according to DIGITIMES, industry sources revealed that Sanan Optoelectronics, the largest LED chip manufacturer in mainland China, has reduced its offer by 10-15% to compete with Taiwan's Epistar for Apple's Mini Mini for LCD panels. LED chip order.
Sanan Optoelectronics originally planned to start supplying Mini LED chips to Apple in the second quarter of 2022, but the lockdown in eastern mainland China has delayed the plan, the sources said.
The source pointed out that Epistar is currently Apple's largest supplier of Mini LED chips, and Austria-based ams-OSRAM is the second largest supplier. However, it is said that ams-OSRAM will stop supplying Mini LED chips and instead develop Micro LED chips.
The source quoted Sanan Optoelectronics as saying that the company has increased the yield of Mini LED chips and is increasing shipments to international suppliers.
Apple has adopted a policy of adding mainland Chinese manufacturers to its supply chain to improve bargaining power and diversify supply risks, the sources added. In addition, Epistar's existing Mini LED chip production capacity will not be enough to meet Apple's demand in the short term.
Sanan Optoelectronics announced in March this year that it had received orders for Mini LEDs from important international customers, and started shipping. The order size exceeded RMB 170 million. The market believes that Sanan Optoelectronics has solved the patent problem and officially entered Apple. The market is worried that Sanan Optoelectronics may start a low-price order grabbing strategy after rushing in, which will challenge the market position of the domestic Mini LED manufacturer.
Previously, according to Li Bingjie, chairman of Fucai, it is understood that mainland competitors were not in a good state of product shipment verification in April this year, coupled with the decline in terminal demand at that time, and they have not yet been able to ship to American customers in large quantities.
However, the source pointed out that as long as it can meet Apple's quality requirements for Mini LED chips, Sanan Optoelectronics will definitely enter its supply chain, and there is no need to reduce quotations to compete for orders.
For manufacturers using Mini LED backlights, the quality of Mini LED chips is the key to production costs. In this regard, the sources pointed out that in their consideration, stable production of high-quality LED chips is more important than price.
However, the sources also said that as Mini LED chip yields improve and production volumes increase, chipmakers will be required to reduce prices by 5-10% in the second half of 2022.
In response to this rumor, the reporter called the securities department of Sanan Optoelectronics, and the other party responded: "I don't know the situation, I need to confirm it, and the announcement shall prevail." However, another Sanan Optoelectronics insider told reporters that it was "fake news".