In recent years, the Fuzhou High-tech Zone has focused on cultivating strategic emerging industries such as integrated circuits and LEDs, and increased investment in high-tech, high-growth, and high-value-added projects. At the same time, we will accelerate the creation of strategic emerging industrial clusters, focus on the integration of industrial chains, and promote the close connection of upstream and downstream industries and cluster development.
One is to accelerate the construction of Zhaoyuan Optoelectronics LED industry project. The project is located in the Biomedicine and Electromechanical Industrial Park of Nanyu Town, Fuzhou High-tech Zone. It is a key provincial and municipal project. It is mainly engaged in the R&D, production and sales of LED epitaxial wafers and chips with a total investment of 3.177 billion RMB and is carried out in two phases. Among them, the first phase of the project has a total investment of 1 billion RMB. At the end of February 2018, the 100,000-chip/month chip production line was put into production, fulfilling the planning requirements of the first phase of the project. The construction of the second phase of the project is currently underway, and we strive to put it into operation within this year. The total investment of the second phase of the project is 2.177 billion RMB. It is planned to build 580,000 pieces/month epitaxial wafers and 580,000 pieces/month chip production lines, and it is expected to achieve revenue of 535 million RMB this year.
The second is to accelerate the construction of Yuanlei LED functionality and special lighting packaging and light source projects. In June 2018, Fuzhou High-tech Zone and Shenzhen Yuanlei Technology Co., Ltd. signed a project cooperation agreement with a planned investment of 1.23 billion RMB to build automated LED functional and special lighting packaging and light source projects. Yuanlei Technology is a leading domestic high-end LED light source device packaging manufacturer and product solution provider. The cooperation project will be implemented in phases, and the annual output value will be 2.7 billion RMB after the project is fully completed.