LED firm Formosa Epitaxy plans to install 12-13 sets of MOCVD equipment before the end of first-quarter 2013 and expects production to begin in the second quarter. Monthly capacity at the firm's Taiwan plant is likely to increase by 50,000 2-inch epitaxial wafer equivalents in second-half 2013.
The firm noted that TV backlight orders began to rebound before the Lunar New Year holidays and demand continues to be strong in March. The firm added that because TV backlight modules and tablet applications both need high-brightness LED chips, currently, demand for high-brightness LED chips exceeds capacity. Capacity utilization rate was 70% in January, 80% in February, and is likely to reach 90% in March, said Formosa Epitaxy.
In the third quarter of 2012, Formosa Epitaxy made plans to expand MOCVD equipment began installation in the fourth quarter.
Formosa Epitaxy's Taiwan plant produces upstream epitaxial wafers and current monthly capacity is 140,000 units. Capacity of its plant in Yangzhou, China is currently around 100,000-110,000 units. The new equipment will increase monthly capacity by 50,000 units, hence accumulated monthly capacity of Formosa Epitaxy in Greater China will reach close to 300,000 units in second-half 2013.
The firm has been receiving LED lighting orders from Europe-, US-, and Japan-based customers due to its cooperation with Japan-based Mitsui & Co. Formosa Epitaxy added that products have been validated by customers and it expects to become an OEM firm for international firms in the second half of 2013. The firm predicts LED lighting revenues to account for 30% of total revenues in 2013.
