Konka Group reported a strong start to 2025. On April 29, the company posted first-quarter revenue of RMB 2.544 billion (USD 356.2 million), a 3.32% increase year-on-year. Total profit jumped 141.79% to RMB 258 million (USD 36.1 million), a result that underscores the momentum behind Konka’s two-pronged strategy in consumer electronics and semiconductors.
This synergy is becoming more visible. In February, Konka’s Chongqing-based unit, Konka Optoelectronics, showcased its latest micro LED chips at the 2025 Global Mini/Micro LED TechDays event. The company has already achieved in-house development and volume production of RGB epitaxial wafers and micro LED chips, positioning it to meet a wide range of market needs.
A key milestone is Konka’s progress in red micro LED chips. It has refined vapor deposition, activation, and bonding processes, reportedly reaching a 98% bonding yield rate. That indicative performance ranks among the industry’s best and lays the groundwork for broader commercial adoption.
On the semiconductor side, Konka is building vertically from the ground up, from materials to packaging and testing. Its Hefei-based subsidiary, Konsemi, has developed full-stack capabilities for storage controller chips, covering everything from IP and hardware to firmware and system integration. That depth enables it to target supply chain bottlenecks and drive localization across the value chain.
The company’s micro LED ambitions rest on two pillars: chip development and mass transfer. It has assembled an end-to-end supply chain spanning epitaxial chips, packaging, display modules, and finished screens—accelerating the commercialization of micro LED devices.
These upstream gains are now feeding into downstream products. For example, the Aphaea A7 television series now features Konka’s in-house artificial intelligence chips. The TVs command higher price premiums, signaling stronger product differentiation.
This integration also improves time-to-market. Years of experience with consumer-facing products give Konka a nuanced understanding of how components are used, enabling better alignment between upstream design and downstream application.
Konsemi’s storage controller chips and modules now power a wide array of devices—across consumer, automotive, and industrial markets. Applications include robotics, automotive electronics, security cameras, Wi-Fi 6 routers, drones, smart terminals, augmented and virtual reality headsets, TVs, smartphones, tablets, projectors, and industrial automation platforms.
The rebound in consumer electronics semiconductors is another tailwind. Following a downturn in 2022 and 2023, shipments of smartphones, tablets, laptops, and wearables are ticking up. The pace quickened in late 2024 with the release of new products, lifting overall industry sentiment.
Localization trends are gaining ground too. Chinese chipmakers continue to advance in design, fabrication, and packaging. Domestic chips are increasingly used in consumer electronics, further fueling sector growth.
Meanwhile, China’s household appliance market is hitting saturation—with penetration above 95%—shifting the industry dynamic from growth to zero-sum competition. In 2023, the top five white goods makers lost 4.2% in combined market share, a sign that single-product moats are eroding.
That raises the bar. Future winners will be those that build full-stack capabilities, and competition will depend on three areas:
- First is technical depth. Companies must move beyond end products and develop upstream core components—creating a chip-to-module-to-device innovation loop. Konka has carved out defensible IP in gallium nitride power devices and MEMS (microelectromechanical system) sensors.
- Second is ecosystem integration. Konka is aligning semiconductor advances with smart home platforms, transitioning from hardware sales to service-driven models built on integrated cloud-edge-chip architectures.
- Third is defining next-gen use cases. As AI hardware matures, scalable commercialization will increasingly rely on breakthrough form factors. Konka is already deploying 1,530-micron-level chips across automotive and wearable devices.
These moves reflect a broader shift toward chip self-sufficiency. By localizing controller chips in its smart TVs, Konka has gained flexibility to respond quickly to market trends. Its evolution—from holding core patents to setting industrial standards—has allowed it to avoid the trap of commoditized competition.
While peers continue to compete on display sizes, Konka has tackled key barriers to 8K video performance by building its own chips. Meanwhile, the focus continues to shift from hardware specs to holistic user experience.
Ultimately, Konka’s two-track strategy is not just about product diversification. By treating semiconductors as the “operating system” of the industry, it seeks to redraw the map for what a traditional appliance company can be—and build new moats that others may find difficult to cross.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by 36Kr Brand.