Taipei, Oct. 1, 2012 (CENS)--LED chipmaker Optotech Corp. has branched out into the packaging sector in the second half this year as the first step of its plan to enlarge market share in LED industry.
Founded around 30 years ago, the company has mainly made LED chips and LED sensors. Upheld by Japanese shareholders Nichia Corp. and Hitachi Corp., the Taiwanese LED maker has begun encapsulating LED chips using chip-on-board (COB) and flip-chip methodologies on a pilot line in its factory in Hsinchu, northern Taiwan.
The company had prepared for the production for three years before installing the pilot production line.
Optotech executives pointed out that the company will begin volume production of the packages sometime in the fourth quarter after sending samples to customers for verification. Its factory in Ningbo, mainland China, which is under construction, will produce the packages for lighting applications.
The Ningbo factory was originally designed to make epitaxy wafers for LED chips. Construction was halted when the 2008 financial crisis erupted. When the construction was resumed last year, the company revised the blueprint for package production. The factory is planned to turn out devices sufficient enough for equipping one million light tubes a month in the preliminary stage.
Volume production at the factory is projected to begin sometime in the second half next year. Until then, the Hsinchu factory will remain the company's major package facility.
Industry executives pointed out that COB and flip-chip packages are two advanced LED packages for high-power lighting applications.
Optotech executives analyzed that the company will become more competitive in cost than its rivals in LED lighting market with its entry into advanced package sector.
They estimated LED package will join LED chip and sensor operations to drive up the company's sales beginning next year.
