Taiwan-based LED chipmaker Genesis Photonics is scheduled to invest US$35 million in 2012 in China on the construction of its plant in Kunshan,southern China.The plant is expected to be completed in the third quarter.
The Kunshan plant is a joint venture between Genesis and the Kunshan municipal government.Construction began in September 2010 with a total investment of around US$200 million.The municipal government will provide 51%of the funds and Genesis 49%.The investment amount for the first phase is US$35.88 million for Genesis.
Genesis mainly focused on producing green LED chips for LED outdoor billboards in China.Before 2009,90%of Genesis'products were green LED chips while 10%were blue LED chips.As demand for white light LEDs has begun to grow,Genesis has been centering on blue LED products.In first-half 2012,blue LED products accounted for 80%of total products,while green LED products accounted for 20%.
According to company chairman David Chung,China is the second-largest market for Genesis and approximately 40%of 2011 total revenues came from China.
Chung added,as the Kunshan plant is scheduled to be completed in the third quarter,Genesis will provide technologies and management while the municipal government will provide government resources and assist in business development.The plant will procure 2-inch MOCVD equipment and expects to have a monthly capacity of 20,000-30,000 epitaxial wafers as commercial production begins.
In the future,Genesis will have three production bases in the Greater China region:Tainan,Dongguan and Kunshan.The Tainan plant will focus on innovative technologies R&D and sales to international customers,according to the firm.
Chung plans to have the two China-based plants be completely responsible for supplying LED chips in China before 2015.
