Taiwan-based LED epitaxial wafer and chip maker Epistar obtained OEM orders for low- and mid-power blue-color LED chips from US-based Cree in July 2013 and will begin shipments in September, according to supply chain sources.
In addition, Epistar has undertaken OEM production of AlGaInP red-color LED chips for Cree, the sources indicated. For the third quarter, Epistar will see revenue proportion for LED lighting rise to 30% and consolidated revenues drop on quarter by 2-4% due to shrinking orders for LED chips used in TV backlighting, the sources added.
Epistar has applied CSP (chip scale packaging) technology to LED chips for use in TV backlighting to reduce cost by 20-30%, the sources noted. Epistar has obtained certification for CSP LED chips from South Korea-based LCD TV vendors, with volume shipments to begin in the first quarter of 2014, the sources said.
Epistar's overall utilization of production capacity is estimated at 95% in September and will decrease to 80% in the fourth quarter due to seasonality, the sources indicated.
