With its production capacity some 20% to 30% short of demands from customers, Epistar, one of the leading light-emitting diode (LED) makers in Taiwan, will invest NT$ 5 billion (US$ 166.7 Million) in expanding production, which may make it become one of the top two LED epitaxy manufacturers in the world, disclosed B.J Lee, chairman of Epistar.
Lee apologized for last year's profit shrinkage at the company's recent shareholders meeting. He said although the company's production lines are fully booked, 20~30% of orders have yet to be filled up. If the company fails to carry out the plant expansion project, other competitors in the market will have the opportunity to grow, and therefore it has decided to launch large expansion in 2013, according to Lee. .
Lee analyzed, if the LED industry reaches its peak in 2018, the entire market needs about 3,000 units of metal organic chemical vapor deposition (MOCVD) machines. If Epistar intends to become the second biggest LED epitaxy manufacturer in the world, next only to Nichia Corp., it has to take a minimum market share of 15% in the upcoming few years and install more MOCVD machines. The company now has a total of 220 units of such machines.
Lee stressed that Epistar started to carry out a five-year development plan beginning 2011, as the LED lighting industry is expected to undergo significant changes in 2015. Epistar has planned to launch expansions in Xiamen (Fujian Province, China), and Chunan (Miaoli County, Taiwan), and its capital expenditure will therefore increase significantly in 2013, with the expanded capacity to be available in 2014.
Source:
http://www.ledinside.com/epistar_invests_20120702
