GCL-Poly LED project put into production optoelectronic assets to be listed separately
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In addition, Zhu Gongshan disclosed the details of cooperation with Guo Taiming in the photovoltaic industry for the first time, saying that Guo Taiming’s advantage in cost control will cause other battery companies to suffer “destructionâ€.
Enter the LED upstream
Zhu Gongshan said that GCL's entry into the industry has been well thought out. It has been prepared for 2-3 years. It will be based on Xuzhou GCL Optoelectronics Technology Co., Ltd., a wholly-owned subsidiary of its company. It is expected to produce 10 million pieces by the end of next year, 2- 20 million pieces in 3 years.
As the leader of the upstream polysilicon link in the photovoltaic industry, the idea of ​​GCL-Poly entering the LED industry chain is exactly the same as entering the polysilicon industry chain, that is, “monopoly upstreamâ€.
Li Zhixiang, deputy general manager of Xuzhou GCL Optoelectronics Technology Co., Ltd. told reporters that GCL-Poly entered the LED industry and chose the sapphire substrate material in the upstream of the industrial chain. It is also the goal of being the leader.
At present, GCL has set up production bases in Suining and Xuzhou, Jiangsu respectively. The total investment of the first phase is 300 million U.S. dollars. By the end of this year, there will be more than 300 crystal growth furnaces with various production methods, as well as imported from Switzerland, the United States and Japan. There are hundreds of processing and testing equipment for cutting, grinding and polishing, and the monthly production of sapphire wafers can reach 1.2 million.
"The first phase of the project will be the largest in China, and the second phase will be the largest in the world." Li Zhixiang told reporters.
A semiconductor industry insider told reporters that sapphire substrate materials are currently showing overcapacity, and GCL-Poly is at risk of entering this time. In this regard, Li Zhixiang believes that overcapacity is only for the international market. In the domestic market, sapphire materials and polysilicon are subject to a large number of dependence on imports. GCL's entry into the sapphire industry will greatly ease the dependence on the international market.
Zhu Gongshan is even more blunt: "My 20 years of experience in manufacturing has taught me that all manufacturing industries are overcapacity. However, the industry that has no closure is only related to the door! The price of sapphire substrates is now falling, but I don't think it is enough."
Zhu Gongshan explained that GCL has never entered an industry blindly. In this LED industry, GCL will have a comprehensive decline in construction costs, equipment costs, material costs and energy costs, and the advantages are very obvious.
Recall that not long ago, Zhu Gongshan was once denounced by the industry in Taiwan to disrupt the polysilicon market. This time, GCL's entry into the sapphire industry is bound to set off another wave in the industry.
The two-inch, 4-inch and 6-inch products currently in operation at the two GCL Optoelectronics Technology Co., Ltd. in Suining and Xuzhou, and the 8-inch and 12-inch products will soon be available.
The downstream customers of sapphire substrates are high-tech fields in many industries such as semiconductor, chemical, aviation, and defense. Zhu Gongshan said that well-known customers in the industry have signed orders with GCL.
Zhu Gongshan also told reporters that the sapphire project, as a wholly-owned subsidiary of GCL, has been its own funds and has not introduced venture capital. However, in the future, it is hoped that the photovoltaic project will be listed separately, and it will definitely consider introducing venture capital before listing. Regarding the listing plan, Zhu Gongshan said that he is still considering it, and both domestic and foreign are considering it. 
