Epistar to Build LED Factory in Jiangsu Province of China

In light of increasingly strong demand for LED (light emitting diode) used as backlights of notebook PCs and LCD (liquid crystal display) TVs, Epistar Corp, the largest LED chip maker in Taiwan, has decided to invest $600 million to build a factory of LEDs in Jiangsu Province, central China, according to the firm.

Epistar is the world`s largest supplier in terms of production volume of red LEDs and fourth-largest in blue LEDs. With popularity of LED-backlit notebook PCs and LCD TVs and LED lightings stimulating more demand for LED chips, the firm is actively planning to build new factories to boost output.

The firm indicated that 30 sets of MOCVD (metal organic chemical vapor deposition) equipment will be procured at the first stage of the construction project and come online in the first quarter of 2011 to contribute an added 40 percent to the existing output. In addition to the brand new factory, the firm now has one plant each operational in Fujian and Liaoning Provinces.

The firm is also planning to reinforce cooperation with downstream Taiwanese makers, such as Lite-On Technology Corp. (LED backlight modules) and Everlight Electronics Co Ltd (LED packaging), to build an integral supply chain of LED applications in China.

Also the firm`s output expansion is also proceeding well in Taiwan, where 30 new sets of MOCVD equipment are to go into mass production next year, according to the firm.

Source: CENS