Received praise from the People’s Daily, Xuyu Optoelectronics relies on AI and optical communications to drive a new future for the industry

Under the multiple tests of increasing downward pressure on the global economy, increasing uncertainty in trade disputes, and an increased probability of China’s economic growth downshifting, the living environment of global semiconductor lighting companies is becoming more complex, and the industry has entered a stage of deep adjustment and continuous reshuffle. However, challenges also breed new vitality. Emerging fields such as visual health lighting, non-visual lighting and visible light communications are injecting more growth momentum into the development of the industry.

In this turbulent industry revolution, featured companies that are deeply involved in segmented tracks are achieving steady growth by virtue of their in-depth understanding of application fields. As a national-level "little giant" enterprise that specializes in new technologies, Xuyu Optoelectronics (Shenzhen) Co., Ltd. (hereinafter referred to as "Xuyu Optoelectronics") relies on forward-looking strategic layout and strong independent innovation capabilities, refusing to be involved in the homogeneous price war in the low-end market, and has successfully upgraded from a single device supplier to a global optoelectronic integration leader.

The global semiconductor lighting industry has ushered in two major intersections, reshaping the competitive landscape

Currently, the global semiconductor lighting industry is at a critical crossroads between the decline of traditional kinetic energy and the rise of new kinetic energy. The two core intersections are reshaping the competitive landscape of the entire industry.

1. The scale effect of the general lighting market has failed, and market segments have become the key for companies to maintain profits and growth

Traditional LED lighting has entered a mature stage, and the growth space has gradually peaked. In the past, packaging companies relied on the extensive path of expanding scale and increasing production capacity to reduce unit costs. However, in the context of the sharp decline in prices of traditional conventional lighting, especially small and medium-power products, pure scale effects are no longer able to resist the reality of continuous squeeze on profits.

In contrast, the application demand for emerging subdivisions such as high-light-efficiency devices, full-spectrum devices, plant lighting devices, and ultraviolet/infrared devices shows sustainable growth demand. Relevant subdivided tracks have higher technical thresholds, and their gross profit margins are higher than those of the traditional general lighting market. These subdivided tracks have gradually become new highlands for the accumulation of advantageous resources, and have also become a key engine for companies to maintain profits and achieve sustainable growth.

According to TrendForce's latest report "2026 Global LED Lighting Market Trends - Data Database and Manufacturer Strategies - 1H26", the global LED lighting market will usher in a critical transition period from decline to stability in 2026 after experiencing external macro-environment fluctuations and demand adjustments. As the scale effect of general lighting gradually expires, market segments with high technical barriers have become the key for companies to maintain profits and growth.

Driven by trends such as carbon reduction policies and green buildings, the industrial structure continues to upgrade. TrendForce predicts that the LED lighting industry will complete a phased bottoming out in 2026 and resume growth in 2027; by 2030, the global lighting LED market will reach US$3.734 billion, with a compound annual growth rate of approximately 2.5% from 2025 to 2030.

2. The rise of AI technology has spawned new applications and the optoelectronics industry has been upgraded.

At the time of the transformation and upgrading of the semiconductor lighting industry, artificial intelligence (AI), the Internet of Things, and big data are rapidly penetrating. Lighting equipment has begun to move from the past "passive control and control" to the intelligent stage of "active sensing, response and interaction".

"With AI, the optoelectronics industry has ushered in many new opportunities. This is not a simple transformation, but an all-round upgrade." Lin Jintai, chairman of Xuyu Optoelectronics, said when communicating with LEDinside.

Taking the field of medical beauty phototherapy as an example, traditional terminal products only provide simple red, green, and blue light irradiation, and consumers cannot know the specific effects. Combined with AI intelligent detection, the system can accurately identify the user's skin age and skin condition, and dynamically match the specific spectrum required. Extended from this level, it can be seen that the integration of AI technology gives "light" more functionality and high added value, driving the entire optoelectronic industry to upgrade to deep intelligence.

Against this background, Xuyu Optoelectronics has accurately anchored the industry's pain points, defined its mission as "driving the new quality future of the industry with the light of semiconductors", and established its grand vision of "becoming a globally trusted leader in optoelectronic integration." Through years of accumulation of core technologies such as device packaging, application spectrum design, phosphor material formulation, and application product development, Xuyu Optoelectronics has fully focused on high value-added innovative application fields and successfully completed the strategic leap from "traditional manufacturing" to "technological innovation leadership."

Rejecting homogeneous competition and price wars, Xuyu Optoelectronics builds high technical barriers to market segments

Facing industry pains such as "serious homogeneity and overcapacity", Xuyu Optoelectronics has a clear solution: through continuous investment in R&D, build technical barriers to the high value-added market. At present, Xuyu Optoelectronics has gradually refined its layout of seven major business sectors, forming a business matrix with a uniform structure and mutual support: light health semiconductor devices, high power density and ultra-high energy efficiency devices, spectrum intelligent control plant lighting devices, machine vision light sensing semiconductor functional devices, wearable medical and aesthetic flexible devices and modules, intelligent IC chip design and packaging and testing, optical information-carrying semiconductor devices and light engines.

In the short term, light health (full spectrum) and high-power ultra-high energy-efficiency devices constitute the two main forces supporting the company's revenue and profits. With these two growth engines, Xuyu Optoelectronics has built a solid foundation for the development of other businesses.

1. Breakthrough in full-spectrum technology: Winning the 2026 Geneva Invention Gold Medal and establishing industry standards

In the field of light health, traditional LED lighting has long been questioned by the market due to "blue-rich" and spectral discontinuity issues. Xuyu Optoelectronics' independently developed "New Low Blue Light High Light Efficiency Healthy Full Spectrum LED Development" technology is the world's first dual blue light full spectrum technology and solves the technical problems of this industry. Its spectrum is infinitely close to natural sunlight. With core advantages such as advanced technology, RG0, and myopia prevention and control, it has obtained more than 30 related patents and formulated standards, and has high social value.

It is worth noting that Xuyu Optoelectronics' innovative achievements in the field of full-spectrum technology have received representative recognition both internationally and domestically:

Geneva International Invention Gold Medal: In March 2026, "LumiSense: a human-centered adaptive full-spectrum lighting system" jointly developed by Xuyu Optoelectronics, Song Jian's team at Tsinghua University, Professor Zhang Xun's team from the French Institute of Electronics and Digital Sciences (ISEP), and Youyan Rare Earth won the gold medal at the 51st Geneva International Invention Exhibition. This project uses biosensors to locate users, analyze visual focus and eye characteristics in real time, and dynamically control full-spectrum LED output to achieve truly personalized eye protection and healthy lighting.

Domestic honors and technology implementation: The self-developed "full spectrum semiconductor light-emitting functional device" was successfully recognized as the "Guangdong Province Manufacturing Single Champion Enterprise" product for 2025-2027. At present, Xuyu Optoelectronics has more than 30 invention patents in the full spectrum field, won the China Patent Award, and was selected into the first batch of advanced applicable technology catalogs of the Ministry of Industry and Information Technology.

Taking the lead in establishing industry standards: In view of the variety of full-spectrum products in the market, Xuyu Optoelectronics anchored the pain points of the industry and took the lead in drafting and formulating the national industry standard "Lighting Appliances Solar Spectrum Evaluation Specifications". The project has now been officially established and has entered the stage of soliciting opinions, filling the gap in the evaluation system in this field.

According to Lin Jintai, in the field of domestic semiconductor lighting, Xuyu Optoelectronics is the first company to win the Geneva Invention Gold Medal. From an industrial perspective, as the People's Daily commented: This achievement is not only a vivid practice of the Healthy China strategy in the field of people's livelihood, but also a key part of the "Sensory and Comprehensive Information" system in the country's future industrial "optical information" system, opening up a new track for the next generation of information and health integration industry. From a business perspective, this major award is a stepping stone for Xuyu Optoelectronics to further explore the international market and go global.

2. High-power ceramic encapsulated light source: working with leading customers to create benchmarks

In the high-power lighting market segment, ceramic encapsulation has become a "necessity" in the field of high-power LEDs due to its unique advantages of high power density, high reliability and high light efficiency. In addition to the traditional outdoor lighting market and bright flashlight market, high-power ceramic packaged light sources have gradually penetrated into areas such as car headlights, mobile phone flashlights, and ultraviolet LED lights.

Xuyu Optoelectronics has mastered the core independent intellectual property rights of ceramic chip high-power light-emitting devices, and its performance has reached domestic leading and internationally advanced levels. Currently, the company's high-power products are in strong demand in domestic and overseas engineering projects such as Brazil and North America.

Taking domestic projects as an example, Xuyu Optoelectronics has joined hands with leading customers in downstream industries such as Unilumin Technology to create a series of high-power lighting benchmark demonstration projects in the field of outdoor road lighting (street lights), such as the Beijing Bird's Nest Lighting System.

AI activates emerging markets, and Xuyu Optoelectronics "shifts gears and speeds up", accumulating strength to make progress

On the basis of the steady development of its main businesses, Xuyu Optoelectronics' layout in emerging markets has also begun to deliver results. Entering the first quarter of 2026, Xuyu Optoelectronics' scientific research results in the fields of medical beauty LED and optical communication have achieved significant growth in orders due to the rapid development of AI technology. The company's performance has been outstanding: operating income was 73.547 million yuan, a significant year-on-year increase of 74.05%; net profit attributable to shareholders of the listed company reached 9.6264 million yuan, a year-on-year increase of 1,684.40%.

Behind this "shifting speed" is the result of its accumulated experience in new tracks such as medical health and optical communications.

Medical health: Consumption upgrades and the pursuit of health and beauty have made medical phototherapy a huge blue ocean with great growth potential. In view of the precise insight into the market demand, Xuyu Optoelectronics teamed up with its downstream strategic partners to jointly launch the world's first AI terminal beauty device, which became the industry benchmark for this new track.

According to reports, the beauty instrument is equipped with Xuyu Optoelectronics’ K series LED special devices suitable for medical beauty scenes, which accurately covers the full spectrum. It is equipped with a 0.2-5W gradient optical power adjustment module, supports multi-level accurate output, and meets the energy needs of different treatment stages and different parts. Once the product was released, it received widespread attention and recognition from consumers.

Optical communications: In addition to visual and non-visual lighting, the next stop for optoelectronic integration is undoubtedly the field of optical communications.

Chen Lei, R&D Director of Xuyu Optoelectronics, revealed: "The company has begun strategically laying out the optical information and optical communications track since 2022, using its core optical engine products as the starting point to enter the optical communications industry chain."

Through in-depth industry-university-research cooperation with top scientific research institutes such as the Department of Electronic Engineering of Tsinghua University, Xuyu Optoelectronics’ independent innovation in the field of optical communications started early and moved quickly. Only recently, the company has achieved the research and development speed of 3 invention patents authorized in a single month, and currently has a total of 15 authorized invention patents in this field.

Against the background of the current stringent requirements for computing power, bandwidth and energy consumption in global data centers, co-packaging (CPO) optical technology is regarded as the cornerstone of future high-speed communications. Xuyu Optoelectronics is accelerating the upgrade and equipment debugging of optical communication production lines at its headquarters building in Shenzhen. It is expected that the relevant production lines will be fully put into use in the third quarter of 2026, thus officially realizing the mass production of core optical communication CPO products, and the results are expected to be gradually reflected in the third quarter of this year.

The 15th Five-Year Plan is off to a good start, Xuyu Optoelectronics resonates with the development of new quality productivity

In recent years, "domestic substitution" and "new productivity" have become industry keywords, and Xuyu Optoelectronics' development path is also highly consistent with this direction. 2026 is the first year of my country’s “15th Five-Year Plan” and is also a critical year for Xuyu Optoelectronics to move towards global innovation leadership. Relying on the core engine of new quality productivity, Xuyu Optoelectronics is exploring a high-quality survival path for semiconductor packaging companies.

On the one hand, Xuyu Optoelectronics insists on independent innovation and promotes the process of localization substitution.

In the past, the market for difficult light sources such as full-spectrum indoor high-end general lighting and ultra-high-power ceramic packaging has long been monopolized by European, American and Japanese international giants such as ams OSRAM, Nichia, and Lumileds. With the accelerated development of domestic enterprises and the improvement of the ecological construction of the industrial chain, the technological gap between domestic and foreign countries has gradually narrowed. Against this background, Xuyu Optoelectronics insists on independent innovation and promotes the process of localization of core light source technology in fields such as light health.

On the other hand, Xuyu Optoelectronics refuses inefficient involution and relies on "industry-university-research + upstream and downstream collaboration" to achieve symbiosis and win-win results.

Against the background of an unstable global socio-economic environment, Xuyu Optoelectronics has firmly chosen to take root in the mature and strong domestic manufacturing supply chain ecosystem, closely locking in the basic research results of universities, and the company will complete the engineering research and commercialization of the technology. At the same time, Xuyu Optoelectronics has established an extremely stable strategic collaboration and collaborative development relationship with upstream and downstream partners in the industry chain to maximize upstream and downstream synergy and promote the high-quality development of China's optoelectronics industry.

In Lin Jintian's view, China's manufacturing industry is facing a new industrial cycle. "Opportunities will always belong to those who have the foundation, technical reserves, and innovation capabilities."

In the past few years, the industry has experienced price competition, production capacity expansion, and cyclical fluctuations; in the future, companies will no longer compete only for scale, but for the depth of innovation and strategic focus. For Xuyu Optoelectronics, from visual health lighting to non-visual lighting to broader fields such as visible light communications, the technology accumulation in the past ten years may be ushering in its own moment of "accumulation and development". (Text: LEDinside Janice)

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