San An Optoelectronics Acquires Lumiles of the Netherlands for $239 Million

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 Acquisition of 3rd Largest Automotive LED Manufacturer Accelerates Global Automotive and Micro-LED Market Capture

 San’an Optoelectronics, China’s largest LED epitaxial wafer and chip manufacturer, announced that it will acquire Lumileds, a Dutch LED specialist, for $239 million in cash.

 Lumileds was originally founded as a joint venture between Philips and Agilent and has grown to become a leading global LED solution supplier in the automotive and architectural lighting segments. The company currently holds the third place in the global automotive LED market (1st ams OSRAM, 2nd Nichia) and recorded sales of approximately $600 million in 2024.

 In the micro-LED field, Lumileds is also actively developing technologies: in 2024, in cooperation with XDC, the company demonstrated a 140 PPI micro-IC driven micro-LED display on a 13× 20 μm LED chip substrate, demonstrating its commercial viability.

San An Optoelectronics accounts for about 60% of China’s LED wafer production, producing more than 24 million wafers annually. In the micro-LED field, the company is working with global display manufacturers such as Samsung and TCL CSOT, and has announced plans to build a $1.8 billion Mini-LED and Micro-LED production center in Hubei Province, China, in 2019. 6-inch by 2025 with a monthly capacity of 1,400 Micro-LED wafer production capacity.

 The acquisition is expected to help Shan’an achieve its two strategic goals of expanding its automotive LED market share and strengthening its Micro-LED technology portfolio. China will have an integrated system from Micro-LEDs for vehicles to ‘chips→ , modules→ , and application to complete vehicles. In particular, the combination of Lumileds’ high-reliability automotive lighting technology and micro-LED device design capabilities is expected to greatly enhance competitiveness in next-generation application markets such as vehicle displays, AR HUD, and smart lighting. If San’an maintains Lumileds’ global OEM network intact, the speed of entry into the European and American luxury vehicle markets could also be very fast.

The reasons for this, in stages, are as follows

1. pre-acquisition – post-acquisition changes in San’an’s value chain

 2. Significance in the Automotive Micro-LED Field

  •  Lumileds Strengths
    •  Experience in automotive reliability certifications such as AEC-Q100/102/104
    •  LED module design capability for headlamps, DRLs, and HUDs
    •  Supply contracts and networks with global automotive suppliers
  •  San’an Strengths
    •  High-volume production capacity of RGB chips for Micro-LEDs
    •  Cost competitiveness +  Government support (China LED Independence Strategy)

Synergies: San’an produces chips OEM delivery can be done within one company →  Complete vertical affiliation

3. Impact on China’s Automotive Micro-LED Strategy

  1.  Technology internalization
    •  Absorption of Lumileds’ vehicle standards compliance and optical design technologies enables development of proprietary automotive Micro-LED modules in China.
  2.  Self-sufficient supply chain
    •  Everything from chips to modules to certification can be handled within China. →  Reduces dependence on foreign countries.
  3.  Cost and speed competitiveness
    •  Shorter certification and mass production conversion time. →  Enhanced negotiating power with global OEMs.
  4.  Competitive pressure
    •  Possible to put pressure on Taiwanese, Korean, and U.S. companies such as AUO, PlayNitride, and JBD in terms of cost and supply speed.

4. Scenario for the next 3-5 years

 Period  Change Forecast
 2025-2026  Integration of Lumileds and production and certification lines in China, demonstration of initial automotive Micro-LED modules
 Year 2027  Full-scale application of Micro-LED modules in HUDs, transparent displays, and lighting for finished vehicles in China (Geely, BYD, etc.)
 After 2028 Expansion of overseas OEM supply, possible reorganization of global Micro-LED market share for vehicles into a China-centric structure

Joohan Kim, Analyst at UBI Research (joohanus@ubiresearch.com)

▶UBI Research’s Micro Display Report