Demand for backlighting products for large-size TVs in China continues to rise, according to Biing-Jye Lee, chairman of Epistar. Lee added that the firm's joint venture for LED epitaxial wafers and chips in Xiamen, southeastern China, with China Electronics is expected to reach full utilization in April and will expand capacity by adding eight MOCVD sets to a total of 19 in 2013.
A joint venture set up in Changzhou, eastern China, by Epistar and Lite-On Technology will also add seven MOCVD sets in the first half of 2013, Epistar indicated. Rising demand for LED lighting will help to push the firm to reach full capacity, said Epistar.
Lee believes LED TV demand in 2013 is closely correlated to the China market. Taiwan-based LED firms have technological advantages and are likely to become the main LED backlighting providers for China-based firms, said Lee.
Facing price competition from China-based peers, Lee pointed out that the impact is limited due to the fact that China-based peers still lag in technology and have yet to become suppliers for South Korea-based TV makers, added Lee.
In 2013, China-based LED maker Sanan Optoelectronics has been competing with Taiwan-based LED firms using low prices. Industry sources noted that Sanan has been relatively mild in using price competition, but another China-based LED firm, Electech, has been slashing prices. Electech currently has 60-70 MOCVD sets.
