LED epitaxial wafer and chip maker Epistar has seen its overall capacity utilization drop from about 50% in October to below 50% in November and the utilization is expected to further slip in December, according to the company.
However, capacity for high-brightness AlGaInP chips has been fully utilized and will remain so until the end of the fourth quarter, Epistar said. Capacity utilization for conventional AlGaInP chips stand at about 70%, Epistar indicated.
The decrease in Epistar's capacity utilization is mainly because of decreased orders from international LED lighting vendors, according to Taiwan-based supply chain makers. Philips Lumileds Lighting originally procured LED chips mainly from Epistar but has shifted orders to China-based makers which offer lower prices, the sources said. Cree has formed a strategic alliance with and invested in Taiwan-based Lextar Electronics and will no longer procure LED chips from Epistar, the sources indicated.
