To cope with increasing price competition in the blue LED segment, Taiwan-based LED packaging firms are shifting the focus of their production to infrared (IR) and sensing devices, reports Digitimes.
China’s largest LED packaging service provider MLS is expanding production capacity for LED devices and lighting. During 2018, monthly production capacity for LED filament light bulbs will be expanded from 10 million units to 20-30 million units. Other China-based manufacturers including Foshan Nationstar Optoelectronics, Hongli Zhihui, Shenzhen Refound Optoelectronics and BMTC are also expanding their capacities.
Taiwan-based Everlight Electronics will expand its production capacity for LED sensing devices, automotive lighting and fine-pixel-pitch displays in 2018, with a capital expenditure (CapEx) budget of NT$2bn (US$66.7m). Among other Taiwan-based manufacturers, Harvatek is establishing a joint venture making IR LED devices in Guangzhou, southern China; Opto Tech will expand production capacity for sensing devices by 10% in first-half 2018; and Tyntek will expand monthly production capacity for 6-inch LED epitaxial wafers by 75% to 30,000 units in third-quarter 2018, catering for LED chips for automotive lighting, medical care, industrial automation and 3D sensing applications, says Digitimes.
IR LED devices and sensing devices are characterized by diverse models with small shipment volumes, and Taiwan-based manufacturers are expected to maintain a technical advantage over China-based competitors during the next 2-3 years, reckon industry sources, according to Digitimes.
