The Lin family of Xiamen is navigating turbulent times. On the evening of April 8, an announcement revealed that Lin Kechuang, General Manager of Sanan Optoelectronics Co.,Ltd., had been placed under detention. He is also the brother-in-law of Chairman Lin Zhiqiang. The two men are of similar age and both joined the core management team in 2017.
Seventeen days prior, Lin Xiucheng, founder of Sanan Optoelectronics Co.,Ltd., was the first to be detained. Subsequently, shares in the listed company held by the Lin family's subsidiaries, Sanan Electronics and Sanan Group, were judicially frozen, accounting for a combined 29.47% of the company with a market value exceeding 17 billion yuan.
With both his father and brother-in-law embroiled in controversy, Lin Zhiqiang, the operator of the family business, must stabilize the situation. At the end of March, he appeared alongside Lin Kechuang to announce a plan for joint share acquisitions over the next six months, involving up to 50 million yuan. The current challenge lies in smoothly advancing multiple projects already underway, with a total investment surpassing 35 billion yuan.
Lin Kechuang is a key figure at Sanan Optoelectronics Co.,Ltd.. Following the announcement of the founder's detention, he attended a press conference in late March as General Manager, along with the management team, to address core concerns. "Sanan Optoelectronics Co.,Ltd. has engaged in in-depth discussions with suppliers, clients, and cooperative financial institutions, all of whom have expressed their support. Current production, operations, and management are entirely normal," stated Lin Kechuang. He emphasized that Lin Xiucheng had not been involved in the daily management of the listed company for many years, and that this incident pertains solely to the actual controller himself, with no connection to Sanan Optoelectronics Co.,Ltd..
Half a month later, Lin Kechuang himself became involved in the controversy, detained by the Chongqing Yuzhong District Supervisory Commission. "We have not received any documents regarding an investigation into the company or a request for cooperation with an investigation," responded Sanan Optoelectronics Co.,Ltd., adding that relevant work arrangements have been properly handled, the Board of Directors is functioning normally, and production, operations, and management remain normal.
However, this rational attempt at separation cannot change the fact that Sanan Optoelectronics Co.,Ltd. is fundamentally a Lin family enterprise. The founder, Lin Xiucheng, from Anxi County, Quanzhou, once topped the list as Xiamen's richest person. On the 2026 Hurun Global Rich List, Lin Xiucheng and his son Lin Zhiqiang ranked third among Xiamen's wealthy with a fortune of 16 billion yuan. In 2017, he proactively handed over leadership to the second generation. His eldest son, Lin Zhiqiang, serves as Chairman; his second son, Lin Zhidong, is a Director and Deputy General Manager; and his son-in-law, Lin Kechuang, held the positions of Vice Chairman and General Manager.
Although he passed on the leadership, Lin Xiucheng occasionally made public appearances. As the head of Sanan Group, the indirect controlling shareholder of Sanan Optoelectronics Co.,Ltd., he took the stage at the company's 25th-anniversary meeting in early February to deliver a speech and outlook for the future. The detention incidents involving the actual controller and the General Manager have dealt a heavy blow to the stock price. From March 23 to the close on April 9, the share price of Sanan Optoelectronics Co.,Ltd. fell by 28%, wiping out over 23 billion yuan in market capitalization.
Amid the turmoil, the second generation is striving to stabilize morale, specifically highlighting progress on one project: Chongqing AnST. This is a joint venture, with Sanan holding a 51% stake. In June 2023, Sanan Optoelectronics Co.,Ltd. and STMicroelectronics established a joint venture factory in Chongqing with a total investment of approximately 23 billion yuan, aiming to build China's first mass production line for 8-inch automotive-grade silicon carbide power chips. The main products are automotive-grade electronic control chips. STMicroelectronics is a significant player, being one of Europe's largest semiconductor manufacturers. Lin Xiucheng was also present at the signing ceremony.
The silicon carbide epitaxial wafers and chips produced by AnST are exclusively sold to STMicroelectronics. The line was activated in February 2025 after just 16 months, with an initial production capacity of 2,000 wafers per month. Upon reaching full capacity, annual production could reach 480,000 wafers, with full production expected by 2028. Management revealed that the project has entered the batch production stage and "will impact the global silicon carbide market." What does 480,000 wafers per year represent? Sanan Optoelectronics Co.,Ltd. estimates this could meet over 40% of domestic demand for automotive-grade silicon carbide.
AnST is crucial for the Lin family's transformation. Sanan originally manufactured LED chips, which use semiconductor materials. Lin Xiucheng, looking ahead, recognized that compound semiconductor materials not only emit light but also offer advantages like high frequency, high speed, and high power, making them excellent materials for next-generation high-performance microwave communications and energy conversion. Consequently, Sanan entered the integrated circuit field, transforming from a single LED chip manufacturer into a compound semiconductor empire.
The Lin family is investing heavily in third-generation semiconductor materials, betting on the future, with a focus on two key directions: silicon carbide and gallium nitride. Among these, the layout for silicon carbide is particularly emphasized. Simultaneously, silicon carbide materials have applications in emerging fields like AR glasses. 8-inch and 12-inch silicon carbide wafers can yield 4 and 10 lenses respectively after cutting. The AR glasses market is expected to provide broad incremental space for semi-insulating silicon carbide substrates. Management believes that AI/AR glasses will become a new growth driver for the silicon carbide business.
Leading the family business through this transformation is not easy for Lin Zhiqiang. Announcements show an estimated net loss of 200-300 million yuan for 2025, which would be the first annual loss since the company's backdoor listing. Sanan explained that while the proportion of high-end LED products has increased further, and the revenue scale and profitability of the integrated circuit business have improved, the filter and silicon carbide businesses have dragged down profits.
Amid this transformation, Sanan's capacity expansions are often large-scale. Major investment projects currently underway primarily consist of three initiatives. The Hunan Sanan Silicon Carbide Semiconductor Industrialization Project has a planned total investment of 16 billion yuan. Upon reaching capacity, it will support an annual output of approximately 360,000 wafers. As of June 2025, cumulative investment exceeded 18.5 billion yuan, yet it has not turned a profit, recording a net loss of 140 million yuan. The Hubei Sanan Mini/Micro Display Industrialization Project involves a total investment of 12 billion yuan. By June 2025, 3 billion yuan had been invested, with a net profit of 88 million yuan. The Chongqing Sanan Semiconductor Silicon Carbide Substrate Project is a supporting project for the joint venture with STMicroelectronics, with a total investment of 7 billion yuan. By the end of June, over 900 million yuan had been invested, awaiting further capacity release.
These three projects alone represent a total investment of 35 billion yuan, mostly funded with the company's own capital. The detention incidents involving the actual controller and the General Manager have intensified the difficulties of this rapid expansion. During the press conference, management stated that Sanan Group has taken multiple countermeasures, including establishing a "Risk Disposal Task Force" to formulate plans led by the group's top leadership, and actively seeking strategic partners to introduce capital. The Lin family is awaiting a solution to break the current impasse.