The board of directors of Whit acquired 100% equity of Zhaoxiang Optoelectronics and Wuhan Xinquantong Technology. It is expected that the three companies will be consolidated in January 2023. The new company will increase Whit revenue and complete the product line of laser diode (LD). Xu Qiutian, chairman of Whitt, said that under the economic downturn, laser precision machining, three five semiconductor test equipment is still expected to perform better next year than this year.
The overall economy is depressed, and the three major businesses of Whit are seeking to hit bottom in the fourth quarter of this year. Xu Qiutian said that, impacted by the continuous sealing and control in mainland China, although MiniLED has orders, the delivery is delayed. Therefore, the company is actively increasing the proportion of contract manufacturing and new businesses, hoping to reduce the impact of LED economic fluctuations, and will adjust Whit to cover PCB and semiconductor industry.
The market is worried that OLED will replace MiniLED. Xu Qiutian said that the two technologies have their own markets, and the smaller LED will stimulate new applications. At present, MiniLED is mainly applied in direct-down backlight and display screens, and most of them are used outdoors. Will help Mini LED cut into indoor applications such as conference occasions, luxury homes and so on.
However, the economy began to freeze since the second quarter, and the cargo of MiniLED equipment slowed down. Xu Qiutian believed that the synchronized production expansion of all major factories in the world would no longer be seen in 2021, and the production expansion would be conservative in 2022. The next wave of MiniLED cargo will be digested only when the penetration of down-lit backlight and TV increases.
In terms of Micro LED, Wheater test equipment and Reger massive transfer equipment have been shipped in small quantities. Xu Qiutian believes that Reger equipment is the most mass-produced equipment in the market, and they are also supplied to Fuchai and Neptunium Trunium Technology. Customers are actively expanding the capacity of Micro LED, and Wheater should take advantage of the business opportunities in Micro LED.
In November, the board of directors approved the acquisition of 100 percent equity in Zhaoxiang Optoelectronics and Wuhan Xinquantong Technology. It is expected that the three companies will file consolidated statements in January next year