(Yicai) May 22 -- Chinese semiconductor giant Sanan Optoelectronics plans to accelerate its overseas expansion this year, focusing primarily on high-end light-emitting diode chips, to tackle the intensified competition in the domestic market.

Sanan's overseas expansion, which will mainly focus on the terminal commercial display, consumer electronics, and wearable product markets, will include establishing overseas branches, enhancing cooperation with foreign firms, and expanding overseas channels and influence, the Xiamen-based company told Yicai yesterday. 

Sanan has research and development centers in Xiamen, Silicon Valley, Tokyo, Munich, London, and Singapore, with sales agencies in China, Japan, the United States, the United Kingdom, and Germany.

The automotive sector will also be a focal point of Sanan's overseas expansion. One of the company's subsidiaries acquired UK auto lighting service Wipac Technology in 2019 to access more advanced technologies and product lines.

Sanan is a mini LED supplier of Apple. Joining the US tech giant's supply chain is helping drive Sanan's collaboration with more international clients, the Chinese firm noted.

The size of the global mini LED market was about USD150 million in 2021 and is expected to exceed USD2.3 billion this year, according to data from Arizton. Sanan's expanded production capacity of mini and micro LED chips is gradually being released.

Sanan also revealed yesterday at an online performance briefing that its project in cooperation with STMicroelectronics will likely launch the production line by the end of this year.

Since last year, the LED chip industry has seen an increase in revenue but a decrease in profits. Sanan reported CNY3.6 billion (USD490 million) in revenue in the first quarter of the year, up 22 percent from a year earlier, and net profit of CNY119 million (USd16.4 million), down 44 percent.

Sanan’s shares [SHA: 600703] closed 1.2 percent up at CNY12.83 (USD1.78) in Shanghai today.

Editor: Futura Costaglione