Taiwan-Based LED Chipmaker Epistar Will Inaugurate Epicrystal (Changzhou)

Taiwan-based LED chipmaker Epistar will inaugurate Epicrystal (Changzhou), its 60%-stake held LED joint venture on September 23. Epicrystal can house 60 sets of MOCVD equipment but will have 10 sets initially at the end of 2011 due to weak market conditions and lack of demand growth. China-based LED firms have been slowing down the procurement of MOCVD equipment due to changes in government incentive programs. Industry observers noted that during 2011 MOCVD equipment installations in China should be around 300-400 sets. The Changzhou plant is one of three Epistar joint ventures in China, and the first to be inaugurated. According to industry sources, the changes in MOCVD equipment incentive programs provided by local governments in China have become more conservative. However, the changes do not affect Epistar's initial plans for expansion in China because the subsidies have been set already. Epistar stated continued increase in equipment will depend on market conditions. Source: www.digitimes.com