On March 5, 2021, Nationstar optoelectronics announced that it plans to increase the capital of Nationstar semiconductor by 220 million yuan to further optimize the upstream chip product structure.

According to the announcement, the seventh meeting of the Fifth Board of directors held by Nationstar on March 4 deliberated and passed the "proposal on capital increase to wholly owned subsidiaries". The company plans to increase the capital of Nationstar semiconductor with its own capital of 220 million yuan, aiming to meet the needs of Nationstar semiconductor to improve its production capacity and optimize its product structure. After the capital increase, the registered capital of Nationstar semiconductor increased from 600 million yuan to 820 million yuan.

The main business of Nationstar semiconductor is R & D, production and sales of LED chips based on sapphire Gan and Si substrates. GaN based products include blue-green display chip, digital chip, white lighting chip, high-power flip chip for lamp, UVA violet chip, etc. In addition to LED epitaxial chips and chips, the main products of Nationstar semiconductor include LED devices, LED light sources and lighting products.

At present, the miniled chip of Nationstar semiconductor has the capacity of mass production, has passed the customer verification specification, can supply direct display and backlight products, and has realized small batch shipment.

In terms of UV chips, Nationstar semiconductor mainly has special chips in the fields of industrial solidification, manicure, mosquito trapping, Photocatalyst air purification, sterilization, etc. In 2020, Nationstar semiconductor will launch four series of UVA and UVC LED chips for curing market, air purification market, sterilization market and health lighting market.

Nationstar said that the capital increase is mainly used for the implementation of technical transformation projects of Nationstar semiconductor, including the purchase of relevant equipment, raw materials, and replenishment of working capital. The purpose of the capital increase of Nationstar semiconductor is to promote the development of the company's LED upstream chip business, help to further optimize the upstream chip product structure, enhance business profitability, deepen the synergy of the industrial chain, and play an important role in improving the company's comprehensive competitive strength and anti risk ability.

In recent years, many large factories in the industry actively grasp the key resources and consolidate and enhance their market position through the integration of upstream and downstream of the industrial chain. And Nationstar semiconductor is an important support for Nationstar to realize the development of upstream and downstream vertical integration. The capital increase of Nationstar semiconductor shows that Nationstar attaches importance to the reserve of third generation semiconductor technology and is further strengthening the layout of upstream business.